AvalonBay Communities, Inc. (NYSE: AVB) has received a consensus recommendation of “Hold” from analysts covering the company, according to a report from MarketBeat.com. Out of the eighteen analysts who evaluated AvalonBay, twelve have assigned a hold rating, while six have issued buy recommendations. The average twelve-month price target stands at approximately $205.89.
In recent days, several research firms have adjusted their ratings and price targets for AvalonBay. On November 25, Barclays upgraded the company from an “equal weight” rating to “overweight,” while lowering its target price from $229.00 to $216.00. Similarly, Truist Financial adjusted its price objective from $218.00 to $205.00 and maintained a buy rating. On December 4, Colliers Securities reiterated a “neutral” rating, decreasing its price target from $200.00 to $195.00. Additionally, Wells Fargo & Company revised its target from $213.00 to $193.00, while also issuing an overweight rating.
Recent Financial Performance and Dividend Announcement
AvalonBay Communities disclosed its quarterly earnings results on October 30, reporting earnings per share (EPS) of $2.75, which fell short of the consensus estimate of $2.81 by $0.06. The company achieved a return on equity of 9.72% and a net margin of 38.78%. Revenue for the quarter reached $766.80 million, slightly exceeding analyst predictions of $766.22 million. In the same quarter of the previous year, AvalonBay recorded an EPS of $2.74. Analysts forecast an average EPS of $11.48 for the current fiscal year.
AvalonBay also announced a quarterly dividend of $1.75, set to be distributed on January 15, 2024. Shareholders on record as of December 31 will qualify for this payment. The ex-dividend date is also December 31. This dividend represents an annualized payout of $7.00 and indicates a yield of 3.9%. The company’s current payout ratio is 85.47%.
Institutional Investments in AvalonBay Communities
Recent shifts in institutional ownership have been notable. Vanguard Group Inc. increased its stake in AvalonBay by 0.6% during the second quarter, now holding 22,800,375 shares valued at around $4.64 billion. State Street Corp also raised its position by 1.0% in the third quarter, owning 9,537,966 shares worth approximately $1.86 billion.
Norges Bank has established a new stake in AvalonBay valued at $1.39 billion. Price T Rowe Associates Inc. boosted its holdings by 7.1% in the first quarter, acquiring an additional 367,853 shares, bringing its total to 5,520,036 shares valued at approximately $1.18 billion. Lastly, JPMorgan Chase & Co. increased its stake by 6.3% in the third quarter, now owning 4,215,821 shares valued at about $814.38 million. Collectively, hedge funds and institutional investors own 92.61% of AvalonBay’s stock.
AvalonBay Communities, Inc. operates as a real estate investment trust, focusing on the development, acquisition, ownership, and management of multifamily communities. The company categorizes its operations into three segments: Same Store, Other Stabilized, and Development or Redevelopment.
