Realty Income Corporation (NYSE: O) stock fell -0.06% on Friday to $62.50 against a previous-day closing price of $62.54. With 4.29 million shares changed hands, the volume of the stock remained heavier than its average volume of 3.65 million shares. During the session, the REIT – Retail company that operates in wider Real Estate sector, reached to the highest price of $62.86 whereas the lowest price it dropped to was $62.12. The 52-week range on O shows that it touched its highest point at $75.40 and its lowest point at $62.28 during that stretch. It currently has a 1-year price target of $76.81. With its current market cap of 38.07 billion, O has annualized dividend of $2.98 while the current yield stands at 4.76%. Beta for the stock currently stands at 0.74.
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 O was down-trending over the past week, with a drop of -1.47%, but this was down by -11.49% over a month. Three-month performance dropped to -8.07% while six-month performance fell -6.58%. The stock lost -4.75% in the past year, while it has lost -12.70% so far this year. A look at the trailing 12-month EPS for O yields 1.06 with Next year EPS estimates of 1.38. For the next quarter, that number is 0.34. This implies an EPS growth rate of -24.30% for this year and 0.07% for next year. EPS is expected to grow by 14.10% annually over the next five years; however, over the past five years, the company experienced an annual growth rate of -5.10%.
Float and Shares Shorts:
At present, 617.58 million O shares are outstanding with a float of 616.77 million shares on hand for trading. On Jul 14, 2022, short shares totaled 20.33 million, which was 3.38% higher than short shares on Jun 14, 2022. In addition to Mr. Sumit Roy as the firm’s Pres, CEO & Director, Ms. Christie B. Kelly serves as its Exec. VP, CFO & Treasurer.
Through their ownership of 78.96% of O’s outstanding shares, institutional investors have majority control over the company. Other institutions hold 46.12% of O, in contrast to 37.83% held by mutual funds. Shares owned by individuals account for 0.45%. As the largest shareholder in O with 15.44% of the stake, The Vanguard Group, Inc. holds 92,889,775 shares worth 92,889,775. A second-largest stockholder of O, SSgA Funds Management, Inc., holds 47,212,193 shares, controlling over 7.85% of the firm’s shares. BlackRock Fund Advisors is the third largest shareholder in O, holding 38,364,164 shares or 6.38% stake. With a 4.51% stake in O, the Vanguard Real Estate Index Fund is the largest stakeholder. A total of 27,123,565 shares are owned by the mutual fund manager. The Vanguard Total Stock Market Index, which owns about 2.96% of O stock, is the second-largest Mutual Fund holder. It holds 17,774,718 shares valued at 1.21 billion. Vanguard Mid Cap Index Fund holds 2.30% of the stake in O, owning 13,809,343 shares worth 942.9 million.
Reading analyst opinions is an effective way to decide where to invest, and there are several opinions available for O since 20 analysts follow the stock currently. There are 9 analysts who recommend BUY ratings, while 0 suggest SELL ratings. Of the remaining analysts, 9 believe that the stock is worth HOLDING, 2 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 O analysts setting a high price target of $84.00 and a low target of $70.00, the average target price over the next 12 months is $76.35. Based on these targets, O could surge 34.4% to reach the target high and rise by 12.0% to reach the target low. Reaching the average price target will result in a growth of 22.16% 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. O will report FY 2022 earnings on 02/22/2023. Analysts have provided yearly estimates in a range of $1.50 being high and $1.24 being low. For O, this leads to a yearly average estimate of $1.34. The earnings surprise of a firm occurs when the actual results change from the consensus earnings estimate. Realty Income Corporation surprised analysts by $0.01 when it reported $0.37 EPS against a consensus estimate of $0.36. The surprise factor in the prior quarter was -$0.06. Based on analyst estimates, the high estimate for the next quarter is $0.39 and the low estimate is $0.31. The average estimate for the next quarter is thus $0.34.
Summary of Insider Activity:
Insiders traded O stock several times over the past three months with 0 Buys and 0 Sells. In these transactions, 0 shares were bought while 0 shares were sold. The number of buy transactions has increased to 23 while that of sell transactions has risen to 13 over the past year. The total number of shares bought during that period was 172,557 while 64,920 shares were sold.