Alexandria Real Estate Equities, Inc. (NYSE:ARE) experienced a significant reduction in short interest during October 2023. As of October 15, the total short interest amounted to 4,720,000 shares, which represents a substantial 31.3% decline from the 6,870,000 shares reported at the end of September. Currently, short sales constitute 2.8% of the company’s outstanding shares, translating to a short-interest ratio of 3.1 days based on an average daily trading volume of 1,510,000 shares.
Institutional Investors Adjust Positions
Several institutional investors and hedge funds have recently altered their stakes in Alexandria Real Estate Equities. Notably, Norges Bank acquired a new position valued at approximately $1.2 billion during the second quarter. AQR Capital Management LLC significantly increased its holdings by 511.9% in the first quarter, now owning 1,517,842 shares worth $140.4 million after acquiring an additional 1,269,795 shares.
Invesco Ltd. also raised its investment by 39.0% during the same period, amassing 3,147,743 shares, valued at $291.2 million. DAVENPORT & Co LLC made an impressive increase of 1,796.2% in the second quarter, with 835,789 shares now worth $60.8 million. Similarly, Lasalle Investment Management Securities LLC boosted its stake by 89.2%, resulting in ownership of 1,175,406 shares valued at $85.4 million. Overall, institutional investors and hedge funds now control 96.54% of Alexandria’s stock.
Stock Performance and Dividends
On Tuesday, Alexandria Real Estate Equities’ shares fell by 2.8%, closing at $54.11 with a trading volume of 1,871,800 shares, surpassing its average volume of 1,704,762. The stock has fluctuated between a twelve-month low of $53.94 and a high of $116.52. The company has a market capitalization of $9.35 billion, with a price-to-earnings ratio of -21.90 and a beta of 1.31.
Additionally, Alexandria Real Estate Equities has declared a quarterly dividend of $1.32, paid on October 15. Stockholders of record on September 30 received this dividend, which indicates an annualized payout of $5.28 and a dividend yield of 9.8%. Notably, the company’s payout ratio stands at -213.77%.
Analyst Ratings and Market Outlook
Recent evaluations from various research firms have highlighted mixed sentiments regarding Alexandria Real Estate Equities. The Royal Bank of Canada has adjusted its price target from $98.00 to $65.00, rating the stock as “sector perform.” BNP Paribas downgraded its rating from “hold” to “strong sell,” setting a target of $82.00. Conversely, BMO Capital Markets initiated coverage with an “outperform” rating and a price target of $100.00.
Currently, investment analysts have categorized the stock with four ratings for “buy,” seven as “hold,” and three as “sell.” According to MarketBeat.com, Alexandria Real Estate Equities holds an average rating of “hold” with a price target of $86.93.
Founded in 1994, Alexandria Real Estate Equities, Inc. has established itself as a leader in the life science real estate sector. The company focuses on developing collaborative life science and technology campuses in prime innovation locations, including Greater Boston, the San Francisco Bay Area, New York City, San Diego, Seattle, Maryland, and Research Triangle.
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