Analysts have set a new average price target of $155.37 for Mid-America Apartment Communities, Inc. (NYSE: MAA), according to MarketBeat Ratings. This figure reflects an overall “Hold” rating from twenty-two brokerages covering the stock. The ratings breakdown includes two “sell” ratings, eleven “hold” ratings, and nine “buy” ratings, indicating a mixed outlook among financial experts.
Recent reports from various analysts have prompted adjustments to their price targets for Mid-America Apartment Communities. Notably, Barclays reduced its target from $155.00 to $142.00 while maintaining an “equal weight” rating. Similarly, Wells Fargo & Company lowered its price objective from $157.00 to $150.00, categorizing the stock as “overweight.” In contrast, BMO Capital Markets upgraded the company’s rating from “hold” to “outperform,” raising its target price from $150.00 to $158.00.
On the other hand, BNP Paribas has taken a more cautious stance, downgrading Mid-America from a “hold” rating to a “strong sell” rating. This shift, along with another downgrade from BNP Paribas Exane from “neutral” to “underperform,” reflects growing concerns among some analysts regarding the company’s performance.
Institutional Investments and Stock Performance
Institutional investors have also been active in modifying their holdings in Mid-America Apartment Communities. Elevation Point Wealth Partners LLC established a new position in the second quarter valued at approximately $25,000. Caitong International Asset Management Co. Ltd. followed suit with a new investment worth around $26,000. Tobam also entered the market, purchasing shares valued at about $26,000 during the third quarter.
Notably, Sound Income Strategies LLC significantly increased its holdings by 972.2%, now owning 193 shares valued at $29,000. Meanwhile, Measured Wealth Private Client Group LLC acquired a new stake worth approximately $33,000. Overall, hedge funds and institutional investors hold 93.60% of Mid-America’s stock.
As of Thursday, shares of Mid-America Apartment Communities opened at $137.06. The company maintains a debt-to-equity ratio of 0.87 and recorded a 52-week low of $125.75 and a high of $173.38. Its market capitalization stands at $16.05 billion, with a price-to-earnings ratio of 29.04.
Recent Earnings and Dividend Increase
Mid-America Apartment Communities reported its quarterly earnings on October 29, 2023, revealing earnings per share of $2.16, slightly below the consensus estimate of $2.17. The company achieved a net margin of 25.23% and a return on equity of 9.14%, with quarterly revenue totaling $554.37 million, compared to the expected $557.22 million. This performance marks a 0.6% increase in revenue year-over-year.
Looking ahead, Mid-America has set its fiscal year 2025 guidance at $8.680 to $8.800 EPS, with a specific forecast for Q4 2025 ranging from $2.170 to $2.290 EPS. Analysts anticipate an EPS of $8.84 for the current fiscal year.
In addition to its earnings report, the company announced a quarterly dividend increase. Shareholders of record on January 15, 2024, will receive a dividend of $1.53 on January 30, 2024, up from the previous quarterly dividend of $1.52. This annualizes to $6.12, representing a yield of 4.5%. Notably, the payout ratio currently stands at 129.66%.
Mid-America Apartment Communities, Inc. is a publicly traded real estate investment trust (REIT) focused on the acquisition, development, and management of multifamily residential properties. The company operates over 100 communities and more than 40,000 apartment homes primarily in key markets across the Sun Belt region, providing a diverse range of living options for residents.
