Zacks Investment Research lowered shares of DIGITAL RLTY TR/SH (NYSE:DLR) from a buy rating to a hold rating in a research report report published on Thursday morning.
According to Zacks, “Shares of Digital Realty have outperformed its industry in the past three months. Further, the trend in estimate revisions of 2018 funds from operations (FFO) per share indicates a favorable outlook for the company. The company’s second-quarter 2018 core FFO per share outpaced the Zacks Consensus Estimate. Operating revenues marked an impressive 33.4% year-over-year rise. Also, Digital Realty raised its 2018 core FFO per share outlook. Notably, solid fundamentals of the data-center market offer scope to the company to ride on the growth curve through accretive acquisitions and development efforts. The company also focuses on maintaining an investment grade balance sheet, enjoys ample liquidity and has a well-laddered debt maturity schedule. Nevertheless, aggressive pricing pressure is likely to continue in the upcoming period. Moreover, the company has a substantial debt burden and hence rate hike adds to its woes.”
A number of other equities research analysts have also recently commented on DLR. BMO Capital Markets lifted their target price on DIGITAL RLTY TR/SH from $120.00 to $124.00 and gave the stock a market perform rating in a research note on Monday, July 30th. Barclays lifted their target price on DIGITAL RLTY TR/SH from $139.00 to $141.00 and gave the stock an overweight rating in a research note on Thursday, August 2nd. Citigroup boosted their price objective on DIGITAL RLTY TR/SH from $119.00 to $131.00 and gave the company a buy rating in a research note on Monday, July 30th. They noted that the move was a valuation call. Credit Suisse Group set a $130.00 price objective on DIGITAL RLTY TR/SH and gave the company a hold rating in a research note on Wednesday. Finally, Guggenheim restated a hold rating and issued a $125.00 price objective on shares of DIGITAL RLTY TR/SH in a research note on Friday, July 20th. Eight analysts have rated the stock with a hold rating and fourteen have issued a buy rating to the company’s stock. The stock has an average rating of Buy and an average price target of $127.28.
Shares of DIGITAL RLTY TR/SH traded down $0.86, reaching $120.96, during mid-day trading on Thursday, according to MarketBeat. 1,029,116 shares of the company’s stock were exchanged, compared to its average volume of 1,196,088. The stock has a market capitalization of $25.11 billion, a price-to-earnings ratio of 19.70, a PEG ratio of 2.68 and a beta of 0.15. DIGITAL RLTY TR/SH has a 52 week low of $96.56 and a 52 week high of $127.23. The company has a debt-to-equity ratio of 0.95, a current ratio of 0.30 and a quick ratio of 0.33.
DIGITAL RLTY TR/SH (NYSE:DLR) last released its earnings results on Thursday, July 26th. The real estate investment trust reported $0.32 EPS for the quarter, missing the Zacks’ consensus estimate of $1.61 by ($1.29). The business had revenue of $754.91 million for the quarter, compared to the consensus estimate of $759.30 million. DIGITAL RLTY TR/SH had a return on equity of 3.02% and a net margin of 9.79%. The company’s revenue for the quarter was up 33.4% on a year-over-year basis. During the same quarter in the previous year, the firm earned $1.54 earnings per share. research analysts expect that DIGITAL RLTY TR/SH will post 6.6 EPS for the current fiscal year.
In other DIGITAL RLTY TR/SH news, SVP Joshua A. Mills sold 2,500 shares of DIGITAL RLTY TR/SH stock in a transaction dated Monday, July 2nd. The stock was sold at an average price of $112.50, for a total transaction of $281,250.00. Following the completion of the transaction, the senior vice president now owns 6,666 shares of the company’s stock, valued at approximately $749,925. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this link. Also, insider Edward F. Sham sold 10,435 shares of DIGITAL RLTY TR/SH stock in a transaction dated Friday, July 6th. The shares were sold at an average price of $115.00, for a total value of $1,200,025.00. Following the transaction, the insider now directly owns 6,207 shares of the company’s stock, valued at approximately $713,805. The disclosure for this sale can be found here. Insiders sold a total of 20,435 shares of company stock worth $2,318,775 over the last 90 days. 0.43% of the stock is currently owned by company insiders.
Hedge funds have recently bought and sold shares of the business. Assetmark Inc. grew its holdings in DIGITAL RLTY TR/SH by 54.6% during the 1st quarter. Assetmark Inc. now owns 1,744 shares of the real estate investment trust’s stock valued at $184,000 after buying an additional 616 shares in the last quarter. Jacobi Capital Management LLC grew its holdings in shares of DIGITAL RLTY TR/SH by 479.0% during the first quarter. Jacobi Capital Management LLC now owns 1,795 shares of the real estate investment trust’s stock worth $185,000 after purchasing an additional 1,485 shares in the last quarter. Synovus Financial Corp purchased a new position in shares of DIGITAL RLTY TR/SH during the first quarter worth about $187,000. TLP Group LLC purchased a new position in shares of DIGITAL RLTY TR/SH during the first quarter worth about $199,000. Finally, Lincoln National Corp purchased a new position in shares of DIGITAL RLTY TR/SH during the second quarter worth about $216,000. 98.54% of the stock is owned by institutional investors and hedge funds.
About DIGITAL RLTY TR/SH
Digital Realty supports the data center, colocation and interconnection strategies of more than 2,300 firms across its secure, network-rich portfolio of data centers located throughout North America, Europe, Asia and Australia. Digital Realty's clients include domestic and international companies of all sizes, ranging from cloud and information technology services, communications and social networking to financial services, manufacturing, energy, healthcare, and consumer products.
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