Shares of Realty Income Corporation (NYSE:O) have received an average recommendation of “Hold” from analysts at fourteen brokerages that are currently covering the company. According to data from MarketBeat.com, eleven analysts have rated the stock as a hold, while three have issued a buy recommendation. The average twelve-month target price among these brokerages stands at $62.33.
Several equity research analysts have recently provided insights on Realty Income. On October 1, 2023, Evercore ISI initiated coverage with an “in-line” rating and set a target price of $62.00. UBS Group increased its price objective from $62.00 to $66.00 and assigned the stock a buy rating in a report dated August 15, 2023. Weiss Ratings reaffirmed a “hold (C+)” rating on November 10, 2023, while Wall Street Zen upgraded the stock from a “strong sell” to a “hold” rating. Additionally, Mizuho raised their price target from $60.00 to $63.00 on September 11, 2023, marking the company with a “neutral” rating.
Recent Institutional Investments and Trading Performance
Recent changes in institutional investments reflect growing interest in Realty Income. Compagnie Lombard Odier SCmA acquired a new position in the second quarter valued at $25,000. Keystone Global Partners LLC made a new investment during the first quarter valued at $26,000. Stance Capital LLC, Heartwood Wealth Advisors LLC, and Avion Wealth have also increased their stakes, with Avion Wealth raising its position by 142.4% during the second quarter.
As of now, institutional investors and hedge funds hold approximately 70.81% of Realty Income’s stock. On November 3, 2023, Realty Income’s shares opened at $56.62. The company boasts a market capitalization of $52.09 billion, a price-to-earnings ratio of 54.97, and a beta of 0.77. Its stock has fluctuated between a one-year low of $50.71 and a high of $61.08. Realty Income maintains a debt-to-equity ratio of 0.72 and a current ratio of 1.85.
Financial Highlights and Dividend Announcement
In its most recent quarterly earnings report, Realty Income announced earnings per share (EPS) of $1.08, slightly exceeding analysts’ consensus estimate of $1.07. The company reported revenues of $1.47 billion, surpassing expectations of $1.35 billion for the quarter. This represents a year-over-year revenue increase of 10.5%, compared to $1.05 EPS in the same quarter last year. Realty Income has provided guidance for fiscal year 2025 with an anticipated EPS range of $4.250 to $4.270.
Realty Income also recently announced a monthly dividend of $0.2695 per share, set to be paid on December 15, 2023. This dividend will benefit investors of record as of November 28, 2023, and represents an annual yield of 5.7%. The company’s payout ratio currently stands at 299.07%.
Founded as a real estate investment trust (REIT), Realty Income is known as “The Monthly Dividend Company.” The firm is a member of the S&P 500 and the S&P 500 Dividend Aristocrats index, focusing on generating reliable monthly dividends supported by cash flows from over 15,450 properties primarily leased to commercial clients under long-term agreements.
