A significant driver of top-line growth: Duke Realty Corporation (DRE)

Duke Realty Corporation (NYSE: DRE) stock fell -2.17% on Friday to $51.44 against a previous-day closing price of $52.58. With 2.16 million shares changed hands, the volume of the stock remained lighter than its average volume of 2.28 million shares. During the session, the REIT – Industrial company that operates in wider Real Estate sector, reached to the highest price of $53.17 whereas the lowest price it dropped to was $51.43. The 52-week range on DRE shows that it touched its highest point at $66.22 and its lowest point at $47.12 during that stretch. It currently has a 1-year price target of $63.92. With its current market cap of 20.24 billion, DRE has annualized dividend of $1.12 while the current yield stands at 2.18%. Beta for the stock currently stands at 0.74.

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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 DRE was down-trending over the past week, with a drop of -10.45%, but this was down by -16.76% over a month. Three-month performance dropped to -4.81% while six-month performance fell -8.27%. The stock gained 5.19% in the past year, while it has lost -21.63% so far this year. A look at the trailing 12-month EPS for DRE yields 2.48 with Next year EPS estimates of 0.94. For the next quarter, that number is 0.22. This implies an EPS growth rate of 179.20% for this year and -27.41% for next year. EPS is expected to grow by 6.00% 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, 384.52 million DRE shares are outstanding with a float of 384.39 million shares on hand for trading. On Jul 14, 2022, short shares totaled 8.57 million, which was 2.23% higher than short shares on Jun 14, 2022. In addition to Mr. James B. Connor as the firm’s Chairman & CEO, Mr. Mark A. Denien serves as its Exec. VP & CFO.

Institutional Ownership:

Through their ownership of 99.45% of DRE’s outstanding shares, institutional investors have majority control over the company. Other institutions hold 59.29% of DRE, in contrast to 39.73% held by mutual funds. Shares owned by individuals account for 1.11%. As the largest shareholder in DRE with 15.77% of the stake, The Vanguard Group, Inc. holds 60,712,625 shares worth 60,712,625. A second-largest stockholder of DRE, Cohen & Steers Capital Management, holds 46,853,079 shares, controlling over 12.17% of the firm’s shares. SSgA Funds Management, Inc. is the third largest shareholder in DRE, holding 25,494,838 shares or 6.62% stake. With a 4.56% stake in DRE, the Vanguard Real Estate Index Fund is the largest stakeholder. A total of 17,557,346 shares are owned by the mutual fund manager. The Vanguard Total Stock Market Index, which owns about 2.95% of DRE stock, is the second-largest Mutual Fund holder. It holds 11,372,691 shares valued at 669.28 million. Vanguard Mid Cap Index Fund holds 2.29% of the stake in DRE, owning 8,826,550 shares worth 519.44 million.

Analysts Ratings:

Reading analyst opinions is an effective way to decide where to invest, and there are several opinions available for DRE since 10 analysts follow the stock currently. There are 4 analysts who recommend BUY ratings, while 0 suggest SELL ratings. Of the remaining analysts, 6 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 DRE analysts setting a high price target of $74.00 and a low target of $56.00, the average target price over the next 12 months is $64.43. Based on these targets, DRE could surge 43.86% to reach the target high and rise by 8.86% to reach the target low. Reaching the average price target will result in a growth of 25.25% 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. DRE will report FY 2022 earnings on 01/25/2023. Analysts have provided yearly estimates in a range of $0.71 being high and $0.71 being low. For DRE, this leads to a yearly average estimate of $0.71. The earnings surprise of a firm occurs when the actual results change from the consensus earnings estimate. Duke Realty Corporation surprised analysts by $0.05 when it reported $0.27 EPS against a consensus estimate of $0.22. The surprise factor in the prior quarter was $0.47. Based on analyst estimates, the high estimate for the next quarter is $0.19 and the low estimate is $0.19. The average estimate for the next quarter is thus $0.19.

Summary of Insider Activity:

Insiders traded DRE stock several times over the past three months with 3 Buys and 3 Sells. In these transactions, 140,910 shares were bought while 152,359 shares were sold. The number of buy transactions has increased to 22 while that of sell transactions has risen to 11 over the past year. The total number of shares bought during that period was 191,378 while 177,896 shares were sold.

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