Royal Bank of Canada Lowers Realty Income Stock Price Target

The Royal Bank of Canada (RBC) has recently lowered its target price for Realty Income (NYSE:O) stock from $67.00 to $63.00, according to a report released on Wednesday. Despite this adjustment, RBC maintains an "outperform" rating for the real estate investment trust (REIT) stock. The new target price suggests that there is still a potential upside of approximately 12.24% from the stock's last closing price.

Market Reactions to Price Target Change

The adjustment from RBC comes amidst other analysts providing their insights on Realty Income. For instance, Wedbush initiated coverage on Realty Income earlier in August, giving it a "neutral" rating with a target price of $64.00. On the other hand, UBS Group raised their price target from $70.00 to $72.00 while rating the stock as a "buy." Meanwhile, JPMorgan Chase increased its target from $60.00 to $67.00, maintaining a "neutral" stance. Scotiabank also raised its target from $61.00 to $64.00 with a rating of "sector perform." Notably, Morgan Stanley reiterated an "equal weight" rating, setting a target of $62.00. Overall, nine analysts have suggested holding the stock, while six have recommended buying, leading to an average rating of "Hold" and a consensus price target of $63.85.

Performance Overview of Realty Income

In trading on Wednesday, Realty Income’s stock experienced a decline of 4.6%, dropping $2.69 to $56.13. The trading volume reached approximately 4.67 million shares, slightly below the average of 5.66 million shares. The company exhibits a debt-to-equity ratio of 0.66, alongside a current ratio and quick ratio both at 1.39. Over the last year, Realty Income's stock has seen a low of $49.52 and a high of $64.88, and its market capitalization stands at approximately $48.88 billion. The company has a price-to-earnings ratio of 51.97 and a P/E/G ratio of 4.09. The stock exhibits a beta of 0.99, indicating a stable performance in the market.

Recent Earnings Report

Realty Income's latest earnings report, released on November 4th, indicated earnings per share (EPS) of $0.30, which fell short of analysts' expectations of $1.05 by $0.75. The company showed a return on equity of 2.36% with a net margin of 17.89%. Revenue for this quarter reached $1.33 billion, surpassing the predicted revenue of $1.26 billion. Compared to the same period last year, revenue increased by 28.1%. Analysts project the company will achieve an EPS of 4.20 for the current fiscal year.

Insider Trading Activity

There have also been notable insider transactions regarding Realty Income. On September 11th, Director Mary Hogan Preusse sold 1,712 shares at an average price of $62.58, totaling approximately $107,136.96 and maintaining ownership of 26,579 shares valued at about $1.66 million. Likewise, Director A. Larry Chapman sold 5,000 shares on August 23rd at an average price of $60.77, with a resulting value of $303,850.00. This trade decreased his holdings slightly to 5,257 shares valued at around $319,467.89. Currently, corporate insiders own about 0.10% of the stock.

Institutional Holdings in Realty Income

In recent developments, large institutional investors have actively traded Realty Income shares. For example, Pacifica Partners Inc. increased its position by 444.4% during the second quarter, owning 490 shares worth $26,000 after acquiring 400 additional shares. Similarly, other investors such as Rosenberg Matthew Hamilton, Creative Capital Management Investments LLC, and Bell Investment Advisors Inc. also boosted their positions significantly. As of now, 70.81% of Realty Income shares are held by institutional investors.

About Realty Income

Realty Income, known as The Monthly Dividend Company, is part of the S&P 500 and a member of the S&P 500 Dividend Aristocrats index. The company aims to provide reliable monthly dividends that grow over time, backed by cash flow from over 15,450 properties primarily leased to commercial clients under long-term agreements.

Realty, Income, Stock