Royal Bank of Canada Lowers Realty Income Stock Price Target

On Wednesday, the Royal Bank of Canada announced a reduction in its price target for Realty Income (NYSE:O) shares, decreasing it from $67.00 to $63.00. Despite the lowered target, the bank maintains an "outperform" rating on the real estate investment trust (REIT) stock. This new price target suggests a potential upside of approximately 12.24% based on the stock's prior closing price.

Several other equity research firms have also recently provided their insights regarding Realty Income's stock performance. For instance, Wedbush initiated coverage on the company back on August 19th with a "neutral" rating and set a price target of $64.00. Meanwhile, UBS Group increased their price target from $70.00 to $72.00 on October 16th, while also giving Realty Income a "buy" rating.

In addition, on September 3rd, JPMorgan Chase raised their target from $60.00 to $67.00, rating it as "neutral." Scotiabank also increased its price objective from $61.00 to $64.00 on September 17th, characterizing the stock as a "sector perform." Furthermore, on August 6th, Morgan Stanley maintained an "equal weight" rating while setting a price target of $62.00.

In total, a combination of analysts has rated the stock, with nine providing "hold" ratings and six assigning "buy" designations. The consensus rating for Realty Income stands at "Hold," with an average target price of approximately $63.85.

Current Stock Performance

During trading hours on Wednesday, Realty Income's stock saw a decline of 4.6%. Shares dropped by $2.69, bringing the price down to $56.13. Approximately 4,674,735 shares were traded, which is somewhat below the stock's average trading volume of 5,662,707. The company has a debt-to-equity ratio of 0.66 and a quick ratio of 1.39, indicating its financial health.

Realty Income's recent share performance has shown a one-year low of $49.52 and a high of $64.88. The current market capitalization of the company stands at around $48.88 billion, with a price-to-earnings ratio of 51.97 and a P/E/G ratio of 4.09.

Recent Earnings Report

On November 4th, Realty Income released its earnings report, revealing earnings per share (EPS) of $0.30 for the quarter. This result was below analysts' expectations, which averaged around $1.05, marking a difference of $0.75. The company reported a return on equity of 2.36% and a net margin of 17.89%, alongside a total revenue of $1.33 billion, surpassing the consensus estimate of $1.26 billion and reflecting a year-over-year revenue increase of 28.1%. Analysts project that Realty Income will report an EPS of 4.2 for the current fiscal year.

Insider Activity

In other news regarding insider actions, Director Mary Hogan Preusse recently sold 1,712 shares of Realty Income on September 11th for an average price of $62.58, totaling just over $107,136.96. Following this transaction, she now owns 26,579 shares valued at approximately $1.66 million. Another director, A. Larry Chapman, sold 5,000 shares on August 23rd at an average price of $60.77, resulting in $303,850.00 from that sale. After this trade, he retains 5,257 shares valued at about $319,467.89.

Institutional Investor Interest

Recently, institutional investors have shown significant interest in Realty Income. For example, Pacifica Partners Inc. increased its holdings by 444.4% in the second quarter, owning 490 shares worth $26,000 now. Other investors, such as Rosenberg Matthew Hamilton and Creative Capital Management Investments LLC, also made substantial increases in their positions in the third quarter. Overall, institutional investors hold approximately 70.81% of Realty Income's stock.

Company Overview

Realty Income, often referred to as The Monthly Dividend Company, operates as a real estate investment trust (REIT). It is a member of the S&P 500 and the S&P 500 Dividend Aristocrats index. The company focuses on delivering consistent monthly dividends, which it aims to increase over time, and supports these dividends through cash flow generated from over 15,450 real estate properties predominantly leased under long-term agreements with commercial clients.

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