Realty Income (NYSE:O) Shares Down 0.4% on Disappointing Earnings

Realty Income Co. (NYSE:O) traded down 0.4% on Tuesday following a dissappointing earnings announcement. The company traded as low as $55.01 and last traded at $55.22. 1,282,110 shares changed hands during trading, a decline of 81% from the average session volume of 6,780,162 shares. The stock had previously closed at $55.45.

The real estate investment trust reported $0.16 EPS for the quarter, missing analysts’ consensus estimates of $1.03 by ($0.87). The company had revenue of $1.26 billion during the quarter, compared to the consensus estimate of $1.15 billion. Realty Income had a net margin of 21.39% and a return on equity of 4.06%. The company’s quarterly revenue was up 33.5% on a year-over-year basis. During the same quarter last year, the firm posted $0.98 EPS.

Realty Income Dividend Announcement

The firm also recently disclosed a may 24 dividend, which will be paid on Wednesday, May 15th. Shareholders of record on Wednesday, May 1st will be issued a dividend of $0.257 per share. The ex-dividend date is Tuesday, April 30th. This represents a yield of 5.9%. Realty Income’s payout ratio is 285.19%.

Analyst Ratings Changes

A number of brokerages have recently weighed in on O. Stifel Nicolaus cut their target price on Realty Income from $67.75 to $65.00 and set a “buy” rating on the stock in a research note on Wednesday, February 21st. BMO Capital Markets initiated coverage on Realty Income in a research report on Tuesday, February 13th. They set a “market perform” rating and a $57.00 target price for the company. Royal Bank of Canada boosted their price target on shares of Realty Income from $58.00 to $60.00 and gave the stock an “outperform” rating in a report on Thursday, January 11th. Mizuho lowered their price objective on shares of Realty Income from $60.00 to $56.00 and set a “buy” rating on the stock in a research report on Thursday, March 7th. Finally, StockNews.com upgraded Realty Income from a “sell” rating to a “hold” rating in a research note on Thursday, February 8th. Eight equities research analysts have rated the stock with a hold rating and five have assigned a buy rating to the company’s stock. Based on data from MarketBeat.com, the company currently has an average rating of “Hold” and a consensus target price of $60.96.

Insiders Place Their Bets

In other Realty Income news, Director A. Larry Chapman sold 5,000 shares of the stock in a transaction that occurred on Tuesday, April 9th. The stock was sold at an average price of $54.23, for a total value of $271,150.00. Following the completion of the sale, the director now owns 6,257 shares in the company, valued at approximately $339,317.11. The transaction was disclosed in a document filed with the SEC, which is available at this link. Insiders own 0.10% of the company’s stock.

Institutional Investors Weigh In On Realty Income

Hedge funds have recently made changes to their positions in the company. Norges Bank bought a new stake in Realty Income in the fourth quarter worth $506,526,000. Vanguard Group Inc. boosted its stake in Realty Income by 3.9% in the 3rd quarter. Vanguard Group Inc. now owns 110,873,424 shares of the real estate investment trust’s stock worth $5,537,019,000 after purchasing an additional 4,172,231 shares in the last quarter. Principal Financial Group Inc. increased its stake in Realty Income by 107.1% during the 4th quarter. Principal Financial Group Inc. now owns 4,951,020 shares of the real estate investment trust’s stock valued at $284,288,000 after purchasing an additional 2,560,597 shares in the last quarter. Cbre Investment Management Listed Real Assets LLC raised its holdings in Realty Income by 213.3% in the fourth quarter. Cbre Investment Management Listed Real Assets LLC now owns 2,171,853 shares of the real estate investment trust’s stock worth $124,708,000 after buying an additional 1,478,577 shares during the last quarter. Finally, GRS Advisors LLC purchased a new position in Realty Income in the fourth quarter worth about $58,843,000. 70.81% of the stock is currently owned by institutional investors.

Realty Income Trading Down 0.4 %

The firm’s 50 day moving average price is $52.94 and its 200-day moving average price is $53.74. The company has a debt-to-equity ratio of 0.64, a current ratio of 1.28 and a quick ratio of 1.28. The stock has a market cap of $47.17 billion, a P/E ratio of 50.72, a P/E/G ratio of 5.73 and a beta of 0.92.

About Realty Income

Realty Income, The Monthly Dividend Company, is an S&P 500 company and member of the S&P 500 Dividend Aristocrats index. We invest in people and places to deliver dependable monthly dividends that increase over time. The company is structured as a real estate investment trust ("REIT"), and its monthly dividends are supported by the cash flow from over 15,450 real estate properties (including properties acquired in the Spirit merger in January 2024) primarily owned under long-term net lease agreements with commercial clients.