Does Digital Realty Trust Inc. (DLR) offer a good opportunity for investors?

Digital Realty Trust Inc. (NYSE: DLR) stock jumped 0.21% on Thursday to $128.48 against a previous-day closing price of $128.21. With 2.18 million shares changed hands, the volume of the stock remained lighter than its average volume of 2.55 million shares. During the session, the REIT – Specialty company that operates in wider Real Estate sector, reached to the highest price of $129.85 whereas the lowest price it dropped to was $128.33. The 52-week range on DLR shows that it touched its highest point at $133.39 and its lowest point at $85.76 during that stretch. It currently has a 1-year price target of $124.06. With its current market cap of 39.44 billion, DLR has annualized dividend of $4.88 while the current yield stands at 3.80%. Beta for the stock currently stands at 0.56.

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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 DLR was down-trending over the past week, with a drop of -2.52%, but this was up by 5.63% over a month. Three-month performance surged to 21.79% while six-month performance rose 22.06%. The stock gained 6.92% in the past year, while it has gained 28.13% so far this year. A look at the trailing 12-month EPS for DLR yields 1.31 with Next year EPS estimates of 1.27. For the next quarter, that number is 0.26. This implies an EPS growth rate of -80.90% for this year and 22.28% for next year. EPS is expected to grow by 16.51% annually over the next five years; however, over the past five years, the company experienced an annual growth rate of 2.70%.

Float and Shares Shorts:

At present, 302.71 million DLR shares are outstanding with a float of 302.25 million shares on hand for trading. On Aug 30, 2023, short shares totaled 15.95 million, which was 5.27% higher than short shares on Jul 30, 2023. In addition to Mr. Andrew P. Power as the firm’s Pres, CEO & Director, Mr. Gregory S. Wright serves as its Chief Investment Officer.

Institutional Ownership:

Through their ownership of 103.71% of DLR’s outstanding shares, institutional investors have majority control over the company. Other institutions hold 61.90% of DLR, in contrast to 48.26% held by mutual funds. Shares owned by individuals account for 0.34%. As the largest shareholder in DLR with 15.44% of the stake, The Vanguard Group, Inc. holds 44,979,244 shares worth 44,979,244. A second-largest stockholder of DLR, Cohen & Steers Capital Management, holds 29,859,978 shares, controlling over 10.25% of the firm’s shares. SSgA Funds Management, Inc. is the third largest shareholder in DLR, holding 20,596,456 shares or 7.07% stake. With a 4.00% stake in DLR, the Vanguard Real Estate Index Fund is the largest stakeholder. A total of 11,656,281 shares are owned by the mutual fund manager. The Stichting Pensioenfonds ABP, which owns about 3.32% of DLR stock, is the second-largest Mutual Fund holder. It holds 9,685,823 shares valued at 1.21 billion. Vanguard Total Stock Market ETF holds 3.12% of the stake in DLR, owning 9,075,093 shares worth 1.13 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, 2023, DLR reported revenue of $1.14B and operating income of $187.74M. The EBITDA in the recently reported quarter was $543.63M and diluted EPS was $0.19.

Analysts Ratings:

Reading analyst opinions is an effective way to decide where to invest, and there are several opinions available for DLR since 0 analysts follow the stock currently. 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 $144.00 and a low target of $94.00, the average target price over the next 12 months is $124.72. Based on these targets, DLR could surge 12.08% to reach the target high and fall by -26.84% to reach the target low. Reaching the average price target will result in a decline of -2.93% 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.

Summary of Insider Activity:

Insiders traded DLR stock several times over the past three months with 2 Buys and 5 Sells. In these transactions, 5,540 shares were bought while 5,594 shares were sold. The number of buy transactions has increased to 13 while that of sell transactions has risen to 34 over the past year. The total number of shares bought during that period was 43,799 while 34,515 shares were sold.

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