Bahl & Gaynor Inc. Reduces Stake in Realty Income Co.

Bahl & Gaynor Inc. has reduced its holdings in Realty Income Co. (NYSE:O - Free Report) by 5.6% during the fourth quarter, according to a recent disclosure with the SEC. After selling 188,542 shares during this period, the fund now owns 3,201,012 shares of the real estate investment trust.

At the close of the most recent reporting period, Bahl & Gaynor Inc. held approximately 0.37% of Realty Income, valued at about $170,966,000.

Recent Institutional Investments

A number of other institutional investors have also made adjustments to their positions in Realty Income. For instance, Sierra Ocean LLC acquired a new position worth about $32,000 during the fourth quarter. Similarly, BankPlus Trust Department joined the ranks of new investors with a stake valued at $37,000. ST Germain D J Co. Inc. significantly increased its position in Realty Income by 306.5%, now owning 752 shares worth roughly $40,000 after buying an additional 567 shares.

Luken Investment Analytics LLC is another newcomer, having invested about $40,000 in Realty Income during the fourth quarter. Independence Bank of Kentucky also boosted its stake by 54.5%, bringing its total to 850 shares valued at $45,000 after acquiring an extra 300 shares during the period. Overall, hedge funds and institutional investors currently control 70.81% of Realty Income's stock.

Realty Income Stock Overview

On Tuesday, Realty Income shares opened at $57.53. The company maintains a 50-day moving average of $54.34 and a 200-day moving average of $57.90. Realty Income has a debt-to-equity ratio of 0.68 and both current and quick ratios of 1.40. The stock experienced a low of $50.65 and a high of $64.88 over the past twelve months, and it has a market capitalization of $51.29 billion. The price-to-earnings ratio stands at 54.79, with a price-to-earnings-growth ratio of 2.10 and a beta of 1.00.

Recent Earnings Report

Realty Income released its earnings results on February 24th. The company reported earnings per share (EPS) of $1.05 for the quarter, slightly missing analysts' expectations of $1.06 by just $0.01. Realty Income achieved a net margin of 17.57% and a return on equity of 2.35%, generating revenue of $1.34 billion for the quarter, surpassing the forecast of $1.28 billion by analysts.

Looking ahead, sell-side analysts predict that Realty Income Co. will report an EPS of 4.19 for the current year.

Dividend Increase Announcement

In addition to financial results, Realty Income announced an increase in its upcoming dividend. The company will pay a dividend of $0.268 per share on March 14th to investors on record as of March 3rd. This represents a dividend yield of 5.7%, up from the previous dividend amount of $0.26. Realty Income’s payout ratio is currently at 327.55%.

Analyst Ratings

Many analysts have recently reviewed Realty Income's shares. UBS Group lowered their price target from $72.00 to $71.00 while maintaining a "buy" rating. Royal Bank of Canada reduced the target from $62.00 to $60.00 and initiated an "outperform" rating. Mizuho cut their price target from $60.00 to $54.00, designating a "neutral" rating. Stifel Nicolaus also reduced the target from $70.00 to $66.50, maintaining a "buy" rating. Lastly, BNP Paribas changed their rating from "outperform" to "neutral" with a target price set at $61.00. Overall, 11 analysts recommend holding the stock while three give it a buy rating, resulting in a consensus rating of "Hold" and a price target of approximately $61.81.

Company Overview

Realty Income, known as The Monthly Dividend Company, is part of the S&P 500 and is included in the S&P 500 Dividend Aristocrats index. The company invests in reliable assets to deliver consistent monthly dividends that increase over time. Realty Income operates as a real estate investment trust (REIT) and derives its monthly dividends from over 15,450 properties primarily rented under long-term net leases with commercial clients.

Bahl, Gaynor, Realty