Citigroup has recently reduced Alexandria Real Estate Equities Inc (ARE) stock to Neutral rating, as announced on September 13, 2024, according to Finviz. Earlier, on August 2, 2024, Jefferies had reduced the stock from a Buy to Hold, setting a price target of $127 for ARE stock. BofA Securities also reduced Neutral rating with a price target of $126. Additionally, Evercore ISI reduced their rating on July 25, 2024, with a target price of $126. Wedbush analysts, in their report published on July 24, 2024, also reduced Neutral rating and set a price target of $130 for Alexandria Real Estate Equities Inc’s stock. Analyst ratings are significant because they provide insights into stock performance expectations, influencing investor decisions and market sentiment.
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Alexandria Real Estate Equities Inc (ARE) Stock Trading Recap
On Tuesday, Alexandria Real Estate Equities Inc (ARE) stock saw a decline, ending the day at $117.11 which represents a decrease of $-1.64 or -1.38% from the prior close of $118.75. The stock opened at $119.06 and touched a low of $116.54 during the day, reaching a high of $119.73. The volume of shares traded was 1.71 million exceeding the average volume of 0.98 million.
ARE Stock Performance and Moving Averages
In recent trading, Alexandria Real Estate Equities Inc (ARE) stock price has shown some volatility, fluctuating -5.87% over the last five trades and -2.06% over the past 30 trades. This represents a notable shift from earlier in the year. Over the last six months, the stock has risen by -5.53%, and it has gained 0.04% in the previous three months. Currently, ARE is trading at -3.33%, -1.12%, and -3.20% relative to its 20-Day, 50-Day, and 200-Day Simple Moving Averages, respectively.
As of the latest trading close, ARE, a Real Estate sector stock, is trading -13.54% below its 52-week high but remains 29.08% above its 52-week low. The Average True Range (ATR) (14 days) of 2.9 highlights the stock’s average volatility, providing insight into how much the price typically fluctuates. This measure is crucial for understanding potential price swings and assessing overall market risk.
Alexandria Real Estate Equities Inc’s Profitability and Valuation Ratios
Alexandria Real Estate Equities Inc’s profitability metrics reveal strong financial health. The company currently boasts an operating margin of 23.55% and a profit margin of 4.65%, with a gross margin of -5.53%. The profit margin, also known as the revenue ratio or gross profit ratio, measures how efficiently a company converts sales into net income; higher margins indicate greater profitability.
In terms of valuation, Alexandria Real Estate Equities Inc’s market capitalization stands at $20.49 billion. Market cap represents the total value of all outstanding shares and is a key indicator of a company’s market value. The stock’s price-to-earnings (P/E) ratio is 144.46, assessing the company’s valuation relative to its earnings. The forward P/E ratio, which uses projected earnings for the next financial year, is 32.93. Additionally, the Price-to-Sales Ratio is 6.81, reflecting the market’s valuation of the company’s sales, while the Price-to-Book Ratio is 1.1, comparing the market value to the company’s book value.
Understanding Insider Trading
Investors often prefer to invest in shares held by company insiders, as management is typically more aligned with the company’s success and shareholder interests. Currently, insiders own just 1.18% of Alexandria Real Estate Equities Inc (ARE)’s shares, while financial institutions hold 94.68%.
Notable insider trades include CIRUZZI VINCENT, Chief Development Officer at Alexandria Real Estate Equities Inc (ARE), who sold 6941 shares on Sep 13 ’24, at $123.29 each, totaling $0.86 million. On Mar 13 ’24, Lee Orraparn C., EVP – Accounting, sold 3000 shares for $126.67 each, amounting to $0.38 million. Additionally, on Mar 01 ’24, Moglia Peter M sold 3200 shares at $122.9 each, generating $0.39 million.
