Realty Income (NYSE:O) Hits New 1-Year Low After Analyst Downgrade

Realty Income Corporation (NYSE:O)’s share price reached a new 52-week low during trading on Wednesday after Scotiabank downgraded the stock from a sector outperform rating to a sector perform rating. Scotiabank now has a $59.00 price target on the stock. Realty Income traded as low as $55.72 and last traded at $55.31, with a volume of 1147245 shares changing hands. The stock had previously closed at $56.53.

Other analysts also recently issued research reports about the company. Mizuho dropped their price objective on Realty Income from $66.00 to $61.00 and set a “neutral” rating on the stock in a research note on Thursday, September 17th. Huntington started coverage on Realty Income in a report on Wednesday, July 15th. They set an “outperform” rating and a $70.00 target price on the stock. Wells Fargo & Company dropped their price target on shares of Realty Income from $65.00 to $64.00 and set an “equal weight” rating on the stock in a research report on Tuesday, September 1st. Barclays cut their price target on shares of Realty Income from $67.00 to $65.00 and set an “equal weight” rating for the company in a report on Friday, September 4th. Finally, Royal Bank Of Canada lowered their price objective on shares of Realty Income from $71.00 to $70.00 and set an “outperform” rating on the stock in a research note on Friday, August 7th. One investment analyst has rated the stock with a Strong Buy rating, seven have issued a Buy rating, eight have given a Hold rating and one has assigned a Sell rating to the stock. According to MarketBeat, the stock currently has a consensus rating of “Hold” and an average target price of $66.23.

Hedge Funds Weigh In On Realty Income

Several institutional investors and hedge funds have recently modified their holdings of O. Nomura Asset Management Co. Ltd. lifted its stake in shares of Realty Income by 0.7% in the fourth quarter. Nomura Asset Management Co. Ltd. now owns 2,323,920 shares of the real estate investment trust’s stock worth $130,999,000 after buying an additional 16,546 shares during the last quarter. Meiji Yasuda Asset Management Co Ltd. bought a new stake in Realty Income during the second quarter valued at about $17,203,000. Renaissance Technologies LLC bought a new stake in Realty Income during the first quarter valued at about $3,147,000. M3 Wealth Management LLC acquired a new stake in shares of Realty Income in the second quarter valued at about $2,665,000. Finally, Geode Capital Management LLC grew its position in shares of Realty Income by 2.8% in the fourth quarter. Geode Capital Management LLC now owns 29,206,196 shares of the real estate investment trust’s stock valued at $1,655,991,000 after purchasing an additional 793,100 shares during the last quarter. 70.81% of the stock is currently owned by hedge funds and other institutional investors.

Realty Income Stock Down 1.5%

The company has a debt-to-equity ratio of 0.73, a current ratio of 5.88 and a quick ratio of 5.88. The business has a 50 day moving average price of $62.16 and a 200 day moving average price of $62.39. The firm has a market capitalization of $52.67 billion, a P/E ratio of 40.58, a price-to-earnings-growth ratio of 4.03 and a beta of 0.71.

Realty Income (NYSE:O) last released its earnings results on Wednesday, August 5th. The real estate investment trust reported $1.09 EPS for the quarter, meeting the consensus estimate of $1.09. Realty Income had a net margin of 20.93% and a return on equity of 3.12%. The firm had revenue of $1.55 billion during the quarter, compared to analysts’ expectations of $1.40 billion. During the same period in the prior year, the company earned $1.05 EPS. The business’s quarterly revenue was up 9.7% compared to the same quarter last year. Realty Income has set its FY 2026 guidance at 4.440-4.450 EPS. On average, analysts predict that Realty Income Corporation will post 4.42 earnings per share for the current year.

Realty Income Increases Dividend

The business also recently announced a monthly dividend, which will be paid on Thursday, October 15th. Investors of record on Wednesday, September 30th will be given a dividend of $0.2715 per share. This is a boost from Realty Income’s previous monthly dividend of $0.27. The ex-dividend date is Wednesday, September 30th. This represents a c) annualized dividend and a dividend yield of 5.9%. Realty Income’s dividend payout ratio is 237.23%.

About Realty Income

Realty Income Corporation is a real estate investment trust (REIT) that owns and manages a diversified portfolio of commercial properties. The company primarily uses long-term, single-tenant, net lease agreements, under which tenants generally assume responsibility for property-level expenses such as maintenance, insurance and taxes.

Its portfolio includes retail, industrial, distribution, office, gaming and other commercial properties. Realty Income serves a broad range of tenants, including convenience stores, grocery stores, pharmacies, home improvement retailers, restaurants, logistics operators and other established businesses.