Realty Income (NYSE:O) Stock Price Down 1% - Time to Sell?

Realty Income Co. (NYSE:O) experienced a 1% decline in its stock price during mid-day trading on Wednesday. The stock fell to a low of $56.41 before closing at $56.36. During this trading session, about 835,176 shares were exchanged, which is a significant drop of 83% compared to the average daily volume of 4,955,029 shares. The previous closing price was $56.96.

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Analyst Upgrades and Downgrades

Several analysts have recently published reports on Realty Income. Scotiabank reduced its price target for the company from $59.00 to $57.00 and assigned it a "sector perform" rating. This downgrade came from a report published on February 28th. Similarly, Stifel Nicolaus lowered its price target from $70.00 to $66.50, although they maintain a "buy" rating. Deutsche Bank also started coverage on Realty Income, giving it a "hold" rating with a target price of $62.00 in their report dated December 11th. Royal Bank of Canada reduced their price target from $62.00 to $60.00, again giving a rating of "outperform." Barclays raised its price target from $56.00 to $59.00 while maintaining an "equal weight" rating. Overall, eleven analysts suggest holding the stock, while three provide a buy rating. As per MarketBeat, Realty Income has an average rating of "Hold" and a consensus target price of $62.04.

Realty Income Trading Down 0.9%

The company's debt-to-equity ratio stands at 0.68, with both the quick ratio and current ratio at 1.40. Realty Income's 50-day moving average is $55.28, while the 200-day moving average price is $57.60. The company boasts a market capitalization of $50.33 billion and has a price-to-earnings (P/E) ratio of 53.76, alongside a P/E to growth (P/E/G) ratio of 2.10 and a beta of 1.00.

Recent Earnings Results

On February 24th, Realty Income released its quarterly earnings report. The Real Estate Investment Trust (REIT) reported earnings per share (EPS) of $1.05, which was slightly below analysts' expectations of $1.06 by a margin of $0.01. The company's revenue for the quarter was $1.34 billion, higher than the expected $1.28 billion. Realty Income achieved a net margin of 17.57% and a return on equity of 2.35%. Analysts predict that the company will report earnings per share of 4.19 for the current year.

Dividend Announcement

Realty Income has also declared a dividend of $0.2685 per share to be distributed on April 15th, which will be payable to stockholders who are on record as of April 1st. This dividend marks an increase from the previous rate of $0.27 per share, representing a dividend yield of 5.7%. The company has a dividend payout ratio of 328.57%.

Institutional Trading Activity

Recent days have seen both institutional investors and hedge funds making moves in Realty Income. For instance, Wealth Enhancement Advisory Services LLC increased its stake by 69.8% in the fourth quarter, now holding 253,399 shares valued at around $13.53 million. Meanwhile, Wood Tarver Financial Group LLC acquired a new stake worth about $124,000, and Castle Rock Wealth Management LLC raised its position by 4.3%, now owning shares worth approximately $1.72 million. It is reported that institutional investors control about 70.81% of the stock.

Company Overview

Realty Income, known as The Monthly Dividend Company, is part of the S&P 500 and is recognized in the S&P 500 Dividend Aristocrats index. The company is structured as a real estate investment trust (REIT), focusing on generating dependable monthly dividends supported by cash flow from over 15,450 properties primarily leased to commercial clients under long-term agreements.

Investing Considerations

If you're considering investing $1,000 in Realty Income, it may be wise to look into the current market trends and analyst ratings before making a decision.

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