Realty Income (NYSE:O) Trading Down 1.5% on Analyst Downgrade

Realty Income Co. (NYSE:O)’s share price dropped 1.5% on Thursday after UBS Group lowered their price target on the stock from $72.00 to $71.00. UBS Group currently has a buy rating on the stock. Realty Income traded as low as $55.88 and last traded at $56.02. Approximately 1,733,200 shares were traded during mid-day trading, a decline of 69% from the average daily volume of 5,662,339 shares. The stock had previously closed at $56.90.

Other research analysts also recently issued research reports about the company. Royal Bank of Canada lowered their price target on Realty Income from $67.00 to $63.00 and set an “outperform” rating on the stock in a report on Wednesday, November 6th. Scotiabank increased their target price on shares of Realty Income from $61.00 to $64.00 and gave the stock a “sector perform” rating in a research report on Tuesday, September 17th. Mizuho downgraded shares of Realty Income from an “outperform” rating to a “neutral” rating and dropped their price target for the stock from $64.00 to $60.00 in a research note on Thursday. Morgan Stanley restated an “equal weight” rating and issued a $62.00 target price on shares of Realty Income in a research note on Tuesday, August 6th. Finally, Stifel Nicolaus cut their price target on Realty Income from $70.50 to $70.00 and set a “buy” rating for the company in a research note on Tuesday, November 5th. Ten equities research analysts have rated the stock with a hold rating and five have assigned a buy rating to the company. According to MarketBeat, the company currently has a consensus rating of “Hold” and a consensus target price of $63.85.

Insider Buying and Selling at Realty Income

In related news, Director Mary Hogan Preusse sold 1,712 shares of the company’s stock in a transaction on Wednesday, September 11th. The shares were sold at an average price of $62.58, for a total transaction of $107,136.96. Following the completion of the transaction, the director now directly owns 26,579 shares in the company, valued at $1,663,313.82. This represents a 0.00 % decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. In other news, Director Mary Hogan Preusse sold 1,712 shares of Realty Income stock in a transaction that occurred on Wednesday, September 11th. The stock was sold at an average price of $62.58, for a total transaction of $107,136.96. Following the sale, the director now owns 26,579 shares of the company’s stock, valued at approximately $1,663,313.82. This trade represents a 0.00 % decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, Director A. Larry Chapman sold 5,000 shares of Realty Income stock in a transaction on Friday, August 23rd. The stock was sold at an average price of $60.77, for a total transaction of $303,850.00. Following the sale, the director now owns 5,257 shares in the company, valued at $319,467.89. This represents a 0.00 % decrease in their position. The disclosure for this sale can be found here. Insiders own 0.10% of the company’s stock.

Institutional Investors Weigh In On Realty Income

Institutional investors have recently added to or reduced their stakes in the stock. Vanguard Group Inc. increased its position in shares of Realty Income by 18.3% during the 1st quarter. Vanguard Group Inc. now owns 134,768,614 shares of the real estate investment trust’s stock worth $7,290,982,000 after purchasing an additional 20,848,560 shares in the last quarter. Parnassus Investments LLC boosted its stake in Realty Income by 7.4% in the third quarter. Parnassus Investments LLC now owns 24,448,225 shares of the real estate investment trust’s stock worth $1,550,506,000 after purchasing an additional 1,676,293 shares in the last quarter. Legal & General Group Plc grew its holdings in shares of Realty Income by 4.5% during the second quarter. Legal & General Group Plc now owns 12,258,468 shares of the real estate investment trust’s stock worth $647,492,000 after purchasing an additional 531,008 shares during the last quarter. Dimensional Fund Advisors LP raised its holdings in shares of Realty Income by 3.7% in the second quarter. Dimensional Fund Advisors LP now owns 11,682,105 shares of the real estate investment trust’s stock valued at $617,043,000 after buying an additional 413,865 shares during the last quarter. Finally, Charles Schwab Investment Management Inc. raised its holdings in shares of Realty Income by 5.0% in the third quarter. Charles Schwab Investment Management Inc. now owns 9,729,229 shares of the real estate investment trust’s stock valued at $617,028,000 after buying an additional 463,286 shares during the last quarter. 70.81% of the stock is owned by institutional investors and hedge funds.

Realty Income Trading Down 1.3 %

The stock has a market cap of $49.14 billion, a P/E ratio of 53.35, a price-to-earnings-growth ratio of 4.01 and a beta of 0.99. The company has a current ratio of 1.40, a quick ratio of 1.40 and a debt-to-equity ratio of 0.68. The business’s fifty day simple moving average is $61.56 and its 200 day simple moving average is $57.98.

Realty Income (NYSE:O) last issued its quarterly earnings results on Monday, November 4th. The real estate investment trust reported $0.30 earnings per share for the quarter, missing analysts’ consensus estimates of $1.05 by ($0.75). The company had revenue of $1.33 billion during the quarter, compared to analyst estimates of $1.26 billion. Realty Income had a net margin of 17.57% and a return on equity of 2.35%. The business’s revenue for the quarter was up 28.1% on a year-over-year basis. During the same period in the prior year, the business earned $1.02 EPS. As a group, analysts expect that Realty Income Co. will post 4.19 EPS for the current year.

Realty Income Increases Dividend

The company also recently declared a monthly dividend, which will be paid on Friday, December 13th. Investors of record on Monday, December 2nd will be issued a $0.2635 dividend. This is a boost from Realty Income’s previous monthly dividend of $0.24. The ex-dividend date is Monday, December 2nd. This represents a $3.16 annualized dividend and a yield of 5.63%. Realty Income’s dividend payout ratio (DPR) is currently 300.96%.

About Realty Income

Realty Income, The Monthly Dividend Company, is an S&P 500 company and member of the S&P 500 Dividend Aristocrats index. We invest in people and places to deliver dependable monthly dividends that increase over time. The company is structured as a real estate investment trust (“REIT”), and its monthly dividends are supported by the cash flow from over 15,450 real estate properties (including properties acquired in the Spirit merger in January 2024) primarily owned under long-term net lease agreements with commercial clients.