Digital Realty Trust, Inc. (DLR) Raised to “Buy” at Zacks Investment Research
Zacks Investment Research upgraded shares of Digital Realty Trust, Inc. (NYSE:DLR) from a hold rating to a buy rating in a research report report published on Monday morning. The brokerage currently has $130.00 target price on the real estate investment trust’s stock.
According to Zacks, “Digital Realty’s third-quarter 2017 core funds from operations (FFO) per share of $1.51 exceeded the Zacks Consensus Estimate of $1.49. Results were supported by growth in revenues. Further, the company raised its 2017 core FFO per share outlook. Recently, the company announced a 50/50 joint venture for offering data-center solutions in Japan. Also, in September, the company announced the completion of a merger with DuPont Fabros. The company is well poised for growth, backed by robust fundamentals of the data-center market. Accretive acquisitions, development efforts and solid balance sheet augur well for long-term growth. Moreover, shares of Digital Realty outperformed the industry it belongs to, year to date. Also, the stock has seen the Zacks Consensus Estimate for current-year FFO per share being revised upward in a week’s time. However, cut-throat competition in the industry and interest rate hike remains concerns.”
DLR has been the topic of a number of other research reports. Macquarie reiterated a neutral rating and set a $105.00 target price on shares of Digital Realty Trust in a research report on Tuesday, July 4th. Canaccord Genuity reiterated a buy rating and set a $127.00 target price on shares of Digital Realty Trust in a research report on Friday, August 18th. KeyCorp set a $130.00 target price on shares of Digital Realty Trust and gave the company a buy rating in a research report on Sunday, October 29th. William Blair began coverage on shares of Digital Realty Trust in a research report on Friday, September 22nd. They set a market perform rating on the stock. Finally, Citigroup Inc. reiterated a neutral rating and set a $127.00 target price on shares of Digital Realty Trust in a research report on Tuesday, September 26th. Eleven investment analysts have rated the stock with a hold rating and eight have assigned a buy rating to the company’s stock. The stock presently has an average rating of Hold and an average target price of $124.00.
Digital Realty Trust (NYSE:DLR) last issued its quarterly earnings results on Wednesday, October 25th. The real estate investment trust reported $1.51 earnings per share (EPS) for the quarter, topping the Zacks’ consensus estimate of $0.40 by $1.11. The firm had revenue of $609.90 million for the quarter, compared to the consensus estimate of $595.49 million. Digital Realty Trust had a net margin of 11.71% and a return on equity of 5.15%. The company’s revenue for the quarter was up 11.6% on a year-over-year basis. During the same quarter in the previous year, the company earned $1.44 EPS.
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The business also recently declared a quarterly dividend, which will be paid on Friday, January 12th. Investors of record on Friday, December 15th will be given a dividend of $0.93 per share. This represents a $3.72 annualized dividend and a yield of 3.13%. Digital Realty Trust’s payout ratio is currently 300.00%.
In related news, insider Christopher Sharp sold 25,733 shares of the stock in a transaction dated Wednesday, August 16th. The shares were sold at an average price of $116.44, for a total transaction of $2,996,350.52. Following the completion of the transaction, the insider now owns 25,733 shares in the company, valued at $2,996,350.52. The transaction was disclosed in a document filed with the SEC, which is available through this link. Also, Director William G. Laperch purchased 1,200 shares of Digital Realty Trust stock in a transaction that occurred on Monday, August 7th. The shares were bought at an average price of $25.00 per share, with a total value of $30,000.00. Following the transaction, the director now owns 1,200 shares of the company’s stock, valued at approximately $30,000. The disclosure for this purchase can be found here. 0.40% of the stock is currently owned by corporate insiders.
A number of hedge funds and other institutional investors have recently added to or reduced their stakes in the business. Vanguard Group Inc. lifted its holdings in Digital Realty Trust by 1.0% during the second quarter. Vanguard Group Inc. now owns 27,928,426 shares of the real estate investment trust’s stock valued at $3,154,515,000 after purchasing an additional 284,515 shares during the last quarter. BlackRock Inc. lifted its holdings in Digital Realty Trust by 2.8% during the second quarter. BlackRock Inc. now owns 15,575,651 shares of the real estate investment trust’s stock valued at $1,759,269,000 after purchasing an additional 428,327 shares during the last quarter. Daiwa Securities Group Inc. lifted its holdings in Digital Realty Trust by 41.5% during the third quarter. Daiwa Securities Group Inc. now owns 6,474,187 shares of the real estate investment trust’s stock valued at $766,091,000 after purchasing an additional 1,897,642 shares during the last quarter. JPMorgan Chase & Co. lifted its holdings in Digital Realty Trust by 7.3% during the second quarter. JPMorgan Chase & Co. now owns 3,569,263 shares of the real estate investment trust’s stock valued at $403,148,000 after purchasing an additional 243,995 shares during the last quarter. Finally, PGGM Investments lifted its holdings in shares of Digital Realty Trust by 15.2% in the third quarter. PGGM Investments now owns 2,923,831 shares of the real estate investment trust’s stock worth $345,977,000 after buying an additional 386,208 shares in the last quarter.
About Digital Realty Trust
Digital Realty Trust, Inc is a real estate investment trust (REIT). The Company is engaged in the business of owning, acquiring, developing and operating data centers. The Company is focused on providing data center and colocation solutions for domestic and international tenants across a range of industry verticals ranging from financial services, cloud and information technology services, to manufacturing, energy, healthcare and consumer products.
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