Realty Income (NYSE:O) was downgraded by Zacks Investment Research from a “buy” rating to a “hold” rating in a research report issued on Wednesday, Zacks.com reports.

According to Zacks, “Shares of Realty Income have underperformed its industry, over the past three months. However, the recent trend in estimate revisions for 2019 funds from operations (FFO) per share indicates a favorable outlook for the company. Recently, the company announced its first international real estate investment. It derives majority of its annualized retail rental revenues from tenants belonging to service, non-discretionary and low-price retail business. Such businesses are less susceptible to economic recessions, as well as competition from Internet retailing. Furthermore, accretive acquisitions and solid balance-sheet strength augur well for long-term growth. However, the prevalent retail apocalypse is a concern. Moreover, the company’s substantial exposure to single tenant assets raises its risks associated with tenant default.”

A number of other research analysts have also weighed in on the company. Citigroup set a $70.00 price objective on Realty Income and gave the company a “hold” rating in a research report on Tuesday, February 26th. Capital One Financial lowered Realty Income from an “equal weight” rating to an “underweight” rating in a research report on Tuesday, March 19th. Wells Fargo & Co raised their price objective on Realty Income from $71.00 to $78.00 and gave the company an “outperform” rating in a research report on Thursday, March 21st. They noted that the move was a valuation call. Finally, Stifel Nicolaus raised their price objective on Realty Income from $70.00 to $75.00 and gave the company a “buy” rating in a research report on Thursday, April 4th. Seven equities research analysts have rated the stock with a hold rating and five have assigned a buy rating to the stock. The company has a consensus rating of “Hold” and an average target price of $61.55.

O stock traded up $0.37 during trading on Wednesday, reaching $69.38. The company’s stock had a trading volume of 82,571 shares, compared to its average volume of 2,437,613. Realty Income has a 1 year low of $51.17 and a 1 year high of $74.14. The company has a debt-to-equity ratio of 0.80, a quick ratio of 1.35 and a current ratio of 1.35. The firm has a market capitalization of $21.56 billion, a PE ratio of 21.75, a PEG ratio of 5.20 and a beta of 0.16.

Realty Income (NYSE:O) last issued its quarterly earnings results on Wednesday, May 1st. The real estate investment trust reported $0.37 earnings per share (EPS) for the quarter, missing the Zacks’ consensus estimate of $0.80 by ($0.43). Realty Income had a return on equity of 7.65% and a net margin of 28.70%. The business had revenue of $354.40 million during the quarter, compared to analysts’ expectations of $335.37 million. During the same quarter in the previous year, the company posted $0.29 EPS. The company’s quarterly revenue was up 11.3% on a year-over-year basis. On average, sell-side analysts forecast that Realty Income will post 3.3 EPS for the current fiscal year.

Several large investors have recently made changes to their positions in O. National Pension Service lifted its stake in Realty Income by 4.7% in the fourth quarter. National Pension Service now owns 330,839 shares of the real estate investment trust’s stock worth $23,086,000 after purchasing an additional 14,838 shares during the last quarter. Unigestion Holding SA bought a new stake in Realty Income in the fourth quarter worth about $353,000. Tredje AP fonden lifted its stake in Realty Income by 112.2% in the fourth quarter. Tredje AP fonden now owns 10,489 shares of the real estate investment trust’s stock worth $664,000 after purchasing an additional 5,545 shares during the last quarter. JPMorgan Chase & Co. lifted its stake in Realty Income by 16.1% in the third quarter. JPMorgan Chase & Co. now owns 2,121,860 shares of the real estate investment trust’s stock worth $120,713,000 after purchasing an additional 293,655 shares during the last quarter. Finally, Strs Ohio lifted its stake in Realty Income by 12.6% in the fourth quarter. Strs Ohio now owns 479,507 shares of the real estate investment trust’s stock worth $30,228,000 after purchasing an additional 53,780 shares during the last quarter. 73.46% of the stock is owned by hedge funds and other institutional investors.

Realty Income Company Profile

Realty Income, The Monthly Dividend Company, is an S&P 500 company dedicated to providing stockholders with dependable monthly income. The company is structured as a REIT, and its monthly dividends are supported by the cash flow from over 5,700 real estate properties owned under long-term lease agreements with regional and national commercial tenants.

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