DigitalBridge Group (NYSE: DBRG) saw its price target raised from $13.50 to $16.00 by Keefe, Bruyette & Woods, according to a research report released to investors on Tuesday. The firm currently maintains a market perform rating on the stock, reflecting a cautious yet positive outlook.
A series of recent analyst evaluations have influenced the stock’s trajectory. On October 30, B. Riley upgraded DigitalBridge Group to a “strong-buy” rating, while Zacks Research shifted its stance from “strong sell” to “hold” on November 5. Additionally, Wall Street Zen increased its rating from “sell” to “hold” on September 13. Citizens Jmp adjusted its rating from “market outperform” to “hold” and set a new price target of $16.00. Furthermore, Royal Bank Of Canada downgraded the rating from “outperform” to “sector perform,” reducing its price target from $23.00 to $16.00 in a report issued on Tuesday.
Overall, four analysts recommend a buy rating, six suggest holding, and one has issued a sell rating. As noted by MarketBeat.com, DigitalBridge Group has an average rating of “Hold” and a consensus target price of $16.22.
Recent Earnings and Dividend Announcement
DigitalBridge Group released its quarterly earnings data on March 21, 2024. The company reported earnings per share (EPS) of ($0.07) for the quarter, with revenue reaching $232.83 million. Analysts forecast that DigitalBridge Group will achieve an EPS of 0.17 for the current fiscal year.
The company also announced a quarterly dividend of $0.01 per share, scheduled for payment on January 15, 2024. Shareholders on record as of December 31, 2023, will receive this dividend, which translates to an annualized payout of $0.04 and a yield of 0.3%. The dividend payout ratio currently stands at 66.67%.
Institutional Investment Activity
Recent activity among institutional investors has further shaped the landscape for DigitalBridge Group. The State of Alaska Department of Revenue acquired a new position valued at approximately $84,000 during the third quarter. NEOS Investment Management LLC and Captrust Financial Advisors also made new investments, valued at about $117,000 and $109,000, respectively.
Russell Investments Group Ltd. significantly increased its stake in DigitalBridge Group by 239.4% in the second quarter, now holding 11,373 shares worth about $118,000. Institutional investors currently own 92.69% of the company’s stock, reflecting strong confidence in its potential.
Market Sentiment and Upcoming Developments
DigitalBridge Group is experiencing considerable market interest, particularly due to recent developments involving a cash acquisition agreement with a buyer linked to SoftBank. This deal has generated positive sentiment, as it often leads to a rise in share price and creates significant investor interest. Reports indicate that the acquisition could be valued at approximately $4 billion, which previously spurred a 9.7% increase in DigitalBridge shares.
In addition, DigitalBridge and Crestview Partners recently completed the acquisition of WideOpenWest (WOW!), enhancing the company’s portfolio and positioning in the digital infrastructure sector.
Despite the positive news, some analysts express caution. Reports suggest that the SoftBank transaction may leave about 7% of the value on the table for investors, indicating potential risks despite the upside.
As the market continues to react to these developments, analysts remain divided. TD Cowen has lowered its rating to “Hold,” and several other firms, including RBC Capital and Truist, have issued similar downgrades. This could limit the stock’s momentum in the near term, as broker sentiment appears to weigh on expectations.
DigitalBridge Group, Inc. focuses on digital infrastructure investments, including data centers, cell towers, and fiber networks. The firm aims to generate sustainable returns by capitalizing on the growing demand for digital services driven by increased data consumption and cloud adoption.
As DigitalBridge Group moves forward, the interplay of analyst ratings, market sentiment, and institutional investment will be key factors to watch in the coming months.
