Duke Realty Corp (NYSE:DRE) was downgraded by Zacks Investment Research from a “hold” rating to a “sell” rating in a report issued on Thursday, May 4th.
According to Zacks, “Duke Realty’s first-quarter 2017 core funds from operations (FFO) per share came ahead of the Zacks Consensus Estimate and the year-ago quarter figure. In-service occupancy peaked to 97.7% in the quarter. The shares of the company also outperformed the Zacks categorized REIT and Equity Trust – Other industry over the past three months. But, its 2017 FFO per share estimate moved south over the past seven days. On May 1, Duke Realty inked a deal with a subsidiary of Healthcare Trust of America, Inc. to sell its medical office business and portfolio for a price of $2.8 billion. While this is strategic fit as it would help simplify its business model and turn into a leading domestic pure play industrial REIT, the dilutive impact on earnings cannot be bypassed. In fact, the company has lowered down its 2017 guidance for core FFO and adjusted FFO, along with the announcement of the transaction. Also, rate hike add to its worries.”
DRE has been the topic of several other reports. Barclays PLC boosted their target price on Duke Realty Corp from $25.00 to $26.00 and gave the stock an “equal weight” rating in a report on Wednesday, April 19th. BMO Capital Markets reissued a “hold” rating and issued a $28.00 target price on shares of Duke Realty Corp in a report on Monday, March 20th. Stifel Nicolaus reduced their target price on Duke Realty Corp from $30.00 to $28.00 and set a “buy” rating on the stock in a report on Friday, January 27th. Mizuho raised Duke Realty Corp from a “neutral” rating to a “buy” rating and boosted their target price for the stock from $27.00 to $28.00 in a report on Monday, February 6th. They noted that the move was a valuation call. Finally, Bank of America Corp raised Duke Realty Corp from a “neutral” rating to a “buy” rating and boosted their target price for the stock from $28.00 to $30.00 in a report on Wednesday, April 5th. One investment analyst has rated the stock with a sell rating, five have given a hold rating and eight have assigned a buy rating to the company. The company presently has an average rating of “Buy” and a consensus price target of $28.58.
Duke Realty Corp (NYSE:DRE) last announced its earnings results on Wednesday, April 26th. The real estate investment trust reported $0.32 EPS for the quarter, topping the consensus estimate of $0.29 by $0.03. The business had revenue of $227.30 million for the quarter, compared to the consensus estimate of $204.47 million. Duke Realty Corp had a return on equity of 9.27% and a net margin of 34.60%. Duke Realty Corp’s revenue was up 1.1% compared to the same quarter last year. During the same period in the previous year, the business earned $0.28 EPS.
The business also recently declared a quarterly dividend, which will be paid on Wednesday, May 31st. Stockholders of record on Tuesday, May 16th will be paid a $0.19 dividend. This represents a $0.76 dividend on an annualized basis and a dividend yield of 2.66%. The ex-dividend date is Friday, May 12th. Duke Realty Corp’s dividend payout ratio (DPR) is currently 86.36%.
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In other news, Director Peter M. Scott III sold 2,500 shares of the stock in a transaction on Monday, May 15th. The stock was sold at an average price of $28.25, for a total value of $70,625.00. The transaction was disclosed in a filing with the SEC, which is accessible through the SEC website. Also, Director Charles R. Eitel sold 5,246 shares of the stock in a transaction on Wednesday, February 22nd. The shares were sold at an average price of $25.52, for a total value of $133,877.92. Following the completion of the transaction, the director now directly owns 4,949 shares in the company, valued at approximately $126,298.48. The disclosure for this sale can be found here. In the last three months, insiders sold 12,549 shares of company stock worth $336,922. 0.40% of the stock is currently owned by company insiders.
Several hedge funds and other institutional investors have recently bought and sold shares of the stock. First Personal Financial Services increased its position in Duke Realty Corp by 117.6% in the first quarter. First Personal Financial Services now owns 3,885 shares of the real estate investment trust’s stock worth $102,000 after buying an additional 2,100 shares during the period. Toronto Dominion Bank increased its position in Duke Realty Corp by 9.6% in the first quarter. Toronto Dominion Bank now owns 3,881 shares of the real estate investment trust’s stock worth $102,000 after buying an additional 341 shares during the period. Pacad Investment Ltd. bought a new position in Duke Realty Corp during the fourth quarter worth $130,000. Harbour Capital Advisors LLC bought a new position in Duke Realty Corp during the first quarter worth $132,000. Finally, Advisor Group Inc. increased its position in Duke Realty Corp by 42.9% in the third quarter. Advisor Group Inc. now owns 5,106 shares of the real estate investment trust’s stock worth $139,000 after buying an additional 1,534 shares during the period. 93.13% of the stock is currently owned by institutional investors.
Duke Realty Corp Company Profile
Duke Realty Corporation is a self-managed real estate investment trust (REIT). The Company and Duke Realty Limited Partnership collectively specialize in the ownership, management and development of bulk distribution (industrial) and medical office real estate. It operates through three segments, the first two of which consist of the ownership and rental of industrial and medical office real estate investments.
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