Alexandria Real Estate Equities, Inc. (NYSE: ARE) has experienced a significant decline in short interest, with figures dropping by 31.3% in October. As of October 15, 2023, the total short interest stood at 4,720,000 shares, down from 6,870,000 shares on September 30. Currently, 2.8% of the company’s shares are sold short, indicating a short-interest ratio of 3.1 days based on an average daily trading volume of 1,510,000 shares.
Several institutional investors and hedge funds have recently adjusted their stakes in Alexandria Real Estate Equities, reflecting their confidence in the company. Notably, Norges Bank acquired a new position in the second quarter valued at $1.2 billion. AQR Capital Management LLC significantly increased its stake by 511.9% in the first quarter, now holding 1,517,842 shares worth approximately $140.4 million after acquiring an additional 1,269,795 shares.
Other substantial investments include Invesco Ltd., which raised its holdings by 39.0%, now owning 3,147,743 shares valued at $291.2 million. DAVENPORT & Co LLC increased its stake by 1,796.2% during the second quarter, acquiring 835,789 shares valued at $60.8 million. Additionally, Lasalle Investment Management Securities LLC increased its stake by 89.2% and now owns 1,175,406 shares worth around $85.4 million. Collectively, institutional investors and hedge funds own 96.54% of the company’s stock.
In trading on Tuesday, shares of Alexandria Real Estate Equities fell by 2.8%, reaching $54.11. The trading volume was 1,871,800 shares, surpassing the average volume of 1,704,762 shares. Over the past year, the stock has fluctuated between a low of $53.94 and a high of $116.52. Alexandria Real Estate Equities currently boasts a market capitalization of $9.35 billion, with a price-to-earnings ratio of -21.90 and a beta of 1.31.
The company also announced a quarterly dividend of $1.32, which was paid on October 15, 2023. Stockholders of record on September 30 received this dividend, translating to an annualized dividend of $5.28 and a dividend yield of 9.8%. Notably, Alexandria Real Estate Equities has a payout ratio of -213.77%.
Recent evaluations from analysts have varied widely. The Royal Bank of Canada reduced its price target for the shares from $98.00 to $65.00, maintaining a “sector perform” rating. BNP Paribas downgraded its rating from “hold” to “strong sell,” setting a price target of $82.00. Meanwhile, Weiss Ratings reaffirmed a “sell (d)” rating, while BNP Paribas Exane lowered its target from $82.00 to $72.00, labeling it as “underperform.”
In contrast, BMO Capital Markets initiated coverage on the stock, issuing an “outperform” rating with a price target of $100.00. Presently, four investment analysts have rated the stock as “buy,” seven have assigned a “hold” rating, and three have given it a “sell” rating. According to MarketBeat.com, Alexandria Real Estate Equities currently holds an average rating of “hold” with an average price target of $86.93.
Founded in 1994, Alexandria Real Estate Equities, Inc. is a leader in the life science real estate sector. The company operates in prime locations, including Greater Boston, the San Francisco Bay Area, New York City, San Diego, Seattle, Maryland, and the Research Triangle. As a mission-driven real estate investment trust (REIT), Alexandria aims to make a lasting impact in the life sciences and technology sectors.
