Zacks Investment Research downgraded shares of Digital Realty Trust (NYSE:DLR) from a hold rating to a sell rating in a research report released on Monday morning.

According to Zacks, “Digital Realty has recently disclosed that it expects to produce high-single-digit growth in core funds from operations (FFO) per share in 2018. However, shares of the company have underperformed the industry it belongs to, in the past three months. Moreover, the stock has seen the Zacks Consensus Estimate for fourth-quarter 2017 as well as full-year 2018 FFO per share being revised downward in a month’s time. Digital Realty’s earnings have a notable exposure to foreign currency translation and face cut-throat competition in the industry. Also, the company has a substantial debt burden. Further, rate hike add to its woes. Nevertheless, solid demand for data centers as well as accretive acquisitions and development efforts have the capability to drive long-term growth.”

A number of other equities research analysts have also recently issued reports on DLR. Citigroup restated a neutral rating and set a $127.00 price objective on shares of Digital Realty Trust in a report on Tuesday, September 26th. KeyCorp restated a buy rating and set a $130.00 price objective on shares of Digital Realty Trust in a report on Tuesday, September 26th. Royal Bank of Canada boosted their price objective on Digital Realty Trust from $127.00 to $133.00 and gave the stock an outperform rating in a report on Wednesday, October 4th. Deutsche Bank upgraded Digital Realty Trust from a hold rating to a buy rating and set a $130.00 price objective for the company in a report on Wednesday, January 10th. Finally, Robert W. Baird restated a neutral rating and set a $121.00 price objective (up previously from $119.00) on shares of Digital Realty Trust in a report on Tuesday, October 10th. One analyst has rated the stock with a sell rating, six have given a hold rating and eleven have issued a buy rating to the company. Digital Realty Trust presently has an average rating of Buy and a consensus target price of $123.40.

Shares of Digital Realty Trust (NYSE:DLR) traded down $0.05 during trading hours on Monday, hitting $106.96. The stock had a trading volume of 1,839,500 shares, compared to its average volume of 1,531,025. Digital Realty Trust has a 12 month low of $101.70 and a 12 month high of $127.23. The company has a market capitalization of $22,040.00, a PE ratio of 86.96, a PEG ratio of 2.17 and a beta of -0.09. The company has a current ratio of 0.46, a quick ratio of 0.46 and a debt-to-equity ratio of 0.85.

Digital Realty Trust (NYSE:DLR) last issued its quarterly earnings data on Wednesday, October 25th. The real estate investment trust reported $1.51 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $0.40 by $1.11. Digital Realty Trust had a return on equity of 5.15% and a net margin of 11.71%. The company had revenue of $609.90 million during the quarter, compared to analysts’ expectations of $595.49 million. During the same quarter in the previous year, the company posted $1.44 earnings per share. The business’s revenue was up 11.6% on a year-over-year basis. analysts forecast that Digital Realty Trust will post 6.1 earnings per share for the current year.

The firm also recently declared a quarterly dividend, which was paid on Friday, January 12th. Stockholders of record on Friday, December 15th were given a $0.93 dividend. The ex-dividend date of this dividend was Thursday, December 14th. This represents a $3.72 dividend on an annualized basis and a dividend yield of 3.48%. Digital Realty Trust’s payout ratio is 302.44%.

Several hedge funds and other institutional investors have recently added to or reduced their stakes in the company. Vanguard Group Inc. raised its position in shares of Digital Realty Trust by 1.0% in 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 buying an additional 284,515 shares in the last quarter. Cohen & Steers Inc. raised its position in Digital Realty Trust by 100.4% during the third quarter. Cohen & Steers Inc. now owns 13,229,368 shares of the real estate investment trust’s stock valued at $1,565,431,000 after purchasing an additional 6,626,871 shares in the last quarter. Daiwa Securities Group Inc. raised its position 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 in the last quarter. PGGM Investments raised its position in Digital Realty Trust by 15.2% during the third quarter. PGGM Investments now owns 2,923,831 shares of the real estate investment trust’s stock valued at $345,977,000 after purchasing an additional 386,208 shares in the last quarter. Finally, Northern Trust Corp raised its position in Digital Realty Trust by 4.8% during the second quarter. Northern Trust Corp now owns 2,909,241 shares of the real estate investment trust’s stock valued at $328,599,000 after purchasing an additional 134,121 shares in the last quarter. Institutional investors own 98.34% of the company’s stock.

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Digital Realty Trust Company Profile

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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