Realty Income (NYSE:O) Trading Down 0.3% - Here's What Happened

Realty Income Co. (NYSE:O) saw its shares decline by 0.3% in mid-day trading on Thursday. The stock hit a low of $56.21 before settling at a price of $56.27. During this trading session, approximately 892,224 shares exchanged hands, which is a significant drop of 82% from the daily average volume of 4,957,280 shares. The stock had previously closed at $56.44.

Wall Street Analysts Forecast Growth

Recently, several equity analysts have provided updates regarding Realty Income. Scotiabank reduced its target price from $59.00 to $57.00, maintaining a "sector perform" rating on the stock, as noted in a research report dated February 28. Deutsche Bank Aktiengesellschaft began coverage of Realty Income on December 11, assigning a "hold" rating with a target price of $62.00. Mizuho also cut its target price from $60.00 to $54.00 while rating it as "neutral" in a report on January 8. Additionally, Royal Bank of Canada lowered its target from $62.00 to $60.00 and issued an "outperform" rating on February 26. Stifel Nicolaus adjusted its price target from $70.00 to $66.50 with a "buy" rating in another January 8 report. In summary, eleven analysts rate the stock as a hold, while three recommend it as a buy. The consensus rating is currently "Hold" with an average target price of $62.04.

Realty Income Price Performance

Realty Income's 50-day moving average stands at $55.52, whereas the 200-day moving average is $57.54. Presently, the company boasts a current ratio of 1.40 and a quick ratio of 1.40, along with a debt-to-equity ratio of 0.68. Realty Income holds a market capitalization of $49.73 billion, a price-to-earnings (P/E) ratio of 53.13, and a price-to-earnings-growth (PEG) ratio of 2.10. The stock’s beta is 1.00.

The latest quarterly earnings data was posted on February 24, revealing that Realty Income earned $1.05 per share (EPS), which fell short of analysts' expectations of $1.06 by $0.01. For the quarter, the company's revenue reached $1.34 billion, slightly above the anticipated $1.28 billion. Realty Income reported a net margin of 17.57% and a return on equity of 2.35%. Current forecasts suggest that Realty Income will achieve an EPS of 4.19 for the current fiscal year.

Realty Income Increases Dividend

In a recent announcement, Realty Income revealed a dividend of $0.2685 that will be paid on April 15. Shareholders on record as of April 1 will receive this dividend, while the ex-dividend date is also set for April 1. This boost reflects an increase from the previous dividend of $0.27, resulting in a yield of 5.7%. Realty Income's payout ratio has reached 328.57%.

Institutional Inflows and Outflows

Institutional investors have been active with Realty Income shares. Empowered Funds LLC raised its position in the third quarter by 2.9%, now holding 15,101 shares valued at $954,000 after acquiring an additional 428 shares. Pathstone Holdings LLC increased its stake by 14.0%, owning 76,316 shares worth $4,840,000 after adding 9,358 shares. Caprock Group LLC heightened its holdings by 28.1%, taking possession of 8,687 shares valued at $551,000 following the acquisition of 1,904 additional shares. B. Metzler seel. Sohn & Co. Holding AG made a new purchase worth approximately $1,437,000 during the third quarter. Moreover, PNC Financial Services Group Inc. boosted its shares by 25.4%, now owning 137,716 shares worth $8,734,000 after increasing their stake by 27,890 shares during the same period. Currently, institutional investors and hedge funds control 70.81% of Realty Income's stocks.

About Realty Income

Realty Income, often referred to as The Monthly Dividend Company, is a member of the S&P 500 and is part of the S&P 500 Dividend Aristocrats index. The firm primarily invests in commercial properties, generating reliable monthly dividends that typically increase over time. Realty Income operates as a real estate investment trust (REIT), with its dividends supported by cash flow from over 15,450 properties, mostly maintained under long-term net lease agreements with commercial clients.

Stocks, Investment, Dividends