Digital Realty Trust Inc. (NYSE: DLR) stock jumped 0.05% on Friday to $129.44 against a previous-day closing price of $129.38. With 1.42 million shares changed hands, the volume of the stock remained lighter than its average volume of 1.6 million shares. During the session, the REIT – Office company that operates in wider Real Estate sector, reached to the highest price of $129.93 whereas the lowest price it dropped to was $128.56. The 52-week range on DLR shows that it touched its highest point at $178.22 and its lowest point at $119.62 during that stretch. It currently has a 1-year price target of $156.89. With its current market cap of 35.95 billion, DLR has annualized dividend of $4.88 while the current yield stands at 3.77%. Beta for the stock currently stands at 0.34.
Price Performance and Earnings:
Stock performance is one of the indicators that investors use to determine whether they will profit from a stock. The price performance of DLR was down-trending over the past week, with a drop of -5.47%, but this was up by 0.81% over a month. Three-month performance dropped to -10.52% while six-month performance fell -13.26%. The stock lost -16.99% in the past year, while it has lost -26.82% so far this year. A look at the trailing 12-month EPS for DLR yields 4.82 with Next year EPS estimates of 1.61. For the next quarter, that number is 0.32. This implies an EPS growth rate of 491.90% for this year and 45.93% for next year. EPS is expected to grow by 24.38% annually over the next five years; however, over the past five years, the company experienced an annual growth rate of 21.90%.
Float and Shares Shorts:
At present, 284.53 million DLR shares are outstanding with a float of 284.29 million shares on hand for trading. On Jul 14, 2022, short shares totaled 9.29 million, which was 3.26% higher than short shares on Jun 14, 2022. In addition to Mr. Arthur William Stein as the firm’s CEO & Director, Mr. Andrew P. Power serves as its Pres & CFO.
Through their ownership of 95.68% of DLR’s outstanding shares, institutional investors have majority control over the company. Other institutions hold 60.08% of DLR, in contrast to 40.17% held by mutual funds. Shares owned by individuals account for 0.36%. As the largest shareholder in DLR with 15.73% of the stake, The Vanguard Group, Inc. holds 44,779,146 shares worth 44,779,146. A second-largest stockholder of DLR, SSgA Funds Management, Inc., holds 17,722,324 shares, controlling over 6.23% of the firm’s shares. BlackRock Fund Advisors is the third largest shareholder in DLR, holding 16,815,160 shares or 5.91% stake. With a 4.38% stake in DLR, the Vanguard Real Estate Index Fund is the largest stakeholder. A total of 12,464,861 shares are owned by the mutual fund manager. The Stichting Pensioenfonds ABP, which owns about 3.42% of DLR stock, is the second-largest Mutual Fund holder. It holds 9,727,956 shares valued at 1.26 billion. Vanguard Total Stock Market Index holds 2.95% of the stake in DLR, owning 8,395,010 shares worth 1.09 billion.
An Overview of Recent Financials:
Understanding a company as a customer does not mean you will understand it as an investor. The wise investor uses quantitative research to analyze metrics such as revenue, net income, and earnings. In its fiscal quarter reported on Jun 29, 2022, DLR reported revenue of $1.14B and operating income of $187.74M. Over the past year, revenue came in at $4.51B while operating income stood at $627.47M. It generated $63.43M net income for the quarter, which came to $1.34B over the last twelve months. The EBITDA in the recently reported quarter was $543.63M and diluted EPS was $0.19. EBITDA for the full year was $2.28B.
Reading analyst opinions is an effective way to decide where to invest, and there are several opinions available for DLR since 24 analysts follow the stock currently. There are 15 analysts who recommend BUY ratings, while 0 suggest SELL ratings. Of the remaining analysts, 9 believe that the stock is worth HOLDING, 0 give it an OVERWEIGHT rating, and 0 thinks that it’s UNDERWEIGHT. In the same way, a target price assigned to a stock can also reveal much about its potential. With DLR analysts setting a high price target of $190.00 and a low target of $140.00, the average target price over the next 12 months is $157.35. Based on these targets, DLR could surge 46.79% to reach the target high and rise by 8.16% to reach the target low. Reaching the average price target will result in a growth of 21.56% from current levels.
EPS: Estimates vs Actual
It is also common to use earnings estimates to evaluate a firm’s growth potential and to determine trading strategy. DLR will report FY 2022 earnings on 02/16/2023. Analysts have provided yearly estimates in a range of $1.38 being high and $0.92 being low. For DLR, this leads to a yearly average estimate of $1.10. The earnings surprise of a firm occurs when the actual results change from the consensus earnings estimate. Digital Realty Trust Inc. surprised analysts by -$0.08 when it reported $0.19 EPS against a consensus estimate of $0.27. The surprise factor in the prior quarter was -$0.06. Based on analyst estimates, the high estimate for the next quarter is $0.47 and the low estimate is $0.20. The average estimate for the next quarter is thus $0.32.
Summary of Insider Activity:
Insiders traded DLR stock several times over the past three months with 4 Buys and 11 Sells. In these transactions, 8,184 shares were bought while 77,693 shares were sold. The number of buy transactions has increased to 25 while that of sell transactions has risen to 40 over the past year. The total number of shares bought during that period was 335,589 while 565,521 shares were sold.