Credit Suisse slashes price target on Alexandria Real Estate Equities Inc. [ARE] – find out why.

Alexandria Real Estate Equities Inc. [NYSE: ARE] gained 0.80% or 1.17 points to close at $147.24 with a heavy trading volume of 383514 shares. The company report on December 5, 2022 that Alexandria Real Estate Equities, Inc. Declares Cash Dividend of $1.21 per Common Share for 4Q22, an Increase of 3 Cents Over 3Q22, and an Aggregate of $4.72 per Common Share for 2022, Up 24 Cents, or 5 Percent, Over 2021.


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Alexandria Real Estate Equities, Inc. (NYSE: ARE) today announced that its Board of Directors declared a quarterly cash dividend of $1.21 per common share for the fourth quarter of 2022. The dividend is payable on January 13, 2023, to shareholders of record on December 30, 2022. The common stock dividend for the year ending December 31, 2022, of $4.72 per common share represents an increase of 24 cents, or 5 percent, over the year ended December 31, 2021.

The dividend allows the company to share its continued high-quality, strong and increasing net cash provided by operating activities with its common shareholders while retaining a significant portion for reinvestment into its highly leased pipeline of new Class A development and redevelopment projects. For the 10-year period ending December 31, 2022, the company expects an aggregate $2.0 billion of cash flows from operating activities after dividends will have been generated for reinvestment. Additionally, its funds from operations (FFO) payout ratio (quarterly common stock dividends divided by quarterly funds from operations) remains favorably low at 56 percent for the three months ended September 30, 2022. Growth in the company’s net cash flows provided by operating activities continues to generate opportunities to increase the company’s quarterly cash dividend per common share while maintaining a low FFO payout ratio.

It opened the trading session at $144.95, the shares rose to $147.26 and dropped to $144.46, the range by which the price of stock traded the whole day. The daily chart for ARE points out that the company has recorded 1.08% gains over the past six months. However, it is still -16.17% lower than its most recent low trading price.

If we look at the average trading volume of 818.54K shares, ARE reached to a volume of 383514 in the most recent trading day, which is why market watchdogs consider the stock to be active.

Here is what top equities market gurus are saying about Alexandria Real Estate Equities Inc. [ARE]:

Based on careful and fact-backed analyses by Wall Street experts, the current consensus on the target price for ARE shares is $174.18 per share. Analysis on target price and performance of stocks is usually carefully studied by market experts, and the current Wall Street consensus on ARE stock is a recommendation set at 1.70. This rating represents a strong Buy recommendation, on the scale from 1 to 5, where 5 would mean strong sell, 4 represents Sell, 3 is Hold, and 2 indicates Buy.

Credit Suisse have made an estimate for Alexandria Real Estate Equities Inc. shares, keeping their opinion on the stock as Neutral, with their previous recommendation back on June 23, 2022. While these analysts kept the previous recommendation, Mizuho raised their target price to Buy. The new note on the price target was released on July 14, 2021, representing the official price target for Alexandria Real Estate Equities Inc. stock. Previously, the target price had yet another raise to $194, while Robert W. Baird analysts kept a Outperform rating on ARE stock.

The Average True Range (ATR) for Alexandria Real Estate Equities Inc. is set at 3.71, with the Price to Sales ratio for ARE stock in the period of the last 12 months amounting to 9.60. The Price to Book ratio for the last quarter was 1.35, with the Price to Cash per share for the same quarter was set at 3.28.

Trading performance analysis for ARE stock

Alexandria Real Estate Equities Inc. [ARE] gain into the green zone at the end of the last week, gaining into a positive trend and gaining by 1.61. With this latest performance, ARE shares dropped by -3.02% in over the last four-week period, additionally plugging by 1.08% over the last 6 months – not to mention a drop of -32.34% in the past year of trading.

Overbought and oversold stocks can be easily traced with the Relative Strength Index (RSI), where an RSI result of over 70 would be overbought, and any rate below 30 would indicate oversold conditions. An RSI rate of 50 would represent a neutral market momentum. The current RSI for ARE stock in for the last two-week period is set at 48.46, with the RSI for the last a single of trading hit 47.31, and the three-weeks RSI is set at 49.37 for Alexandria Real Estate Equities Inc. [ARE]. The present Moving Average for the last 50 days of trading for this stock 145.80, while it was recorded at 145.84 for the last single week of trading, and 158.94 for the last 200 days.

Alexandria Real Estate Equities Inc. [ARE]: A deeper dive into fundamental analysis

Operating Margin for any stock indicates how profitable investing would be, and Alexandria Real Estate Equities Inc. [ARE] shares currently have an operating margin of +24.51 and a Gross Margin at +31.67. Alexandria Real Estate Equities Inc.’s Net Margin is presently recorded at +26.65.

Return on Equity for this stock inclined to 4.04, with Return on Assets sitting at 2.12.

Alexandria Real Estate Equities Inc. [ARE]: An earnings per share (EPS) analysis

The progress of the company may be observed through the prism of EPS growth rate, while Wall Street analysts are focusing on predicting the 5-year EPS growth rate for ARE. When it comes to the mentioned value, analysts are expecting to see the 5-year EPS growth rate for Alexandria Real Estate Equities Inc. go to -10.96%.

An analysis of insider ownership at Alexandria Real Estate Equities Inc. [ARE]

There are presently around $23,852 million, in the hands of institutional investors. The top three institutional holders of ARE stocks are: VANGUARD GROUP INC with ownership of 25,749,043, which is approximately 0.994% of the company’s market cap and around 0.90% of the total institutional ownership; BLACKROCK INC., holding 15,161,961 shares of the stock with an approximate value of $2.23 billion in ARE stocks shares; and NORGES BANK, currently with $1.99 billion in ARE stock with ownership of nearly 0% of the company’s market capitalization.

Positions in Alexandria Real Estate Equities Inc. stocks held by institutional investors increased at the end of October and at the time of the October reporting period, where 345 institutional holders increased their position in Alexandria Real Estate Equities Inc. [NYSE:ARE] by around 11,169,157 shares. Additionally, 259 investors decreased positions by around 11,996,387 shares, while 79 investors held positions by with 138,829,148 shares. The mentioned changes placed institutional holdings at 161,994,692 shares, according to the latest SEC report filing. ARE stock had 71 new institutional investments in for a total of 2,046,262 shares, while 64 institutional investors sold positions of 3,782,539 shares during the same period.

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