Is Alexandria Real Estate Equities Inc. (ARE) A Risky Investment?

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Alexandria Real Estate Equities Inc. (NYSE:ARE) finished Friday with an addition of $0.47 to close at $145.67, an upside of 0.32 percent. An average of 786,780 shares of common stock have been traded in the last five days. There was a fall of -$0.40 in the past week, and it reached a new high 1 time over the past 12 months. The last 20 days have seen an average of 870,245 shares traded, while the 50-day average volume stands at 774,024.

ARE stock has decreased by -6.39% in the last month. The company shares reached their 1-month lowest point of $142.22 on 12/20/22. With the stock rallying to its 52-week high on 01/03/22, shares of the company touched a low of $126.74 and a high of $224.95 in 52 weeks. It has reached a new high 1 time so far this year and lost -34.67% or -$77.29 in price. In spite of this, the price is down -35.24% from the 52-week high.

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Insider Transactions

ARE stock investors should be aware that Alexandria Real Estate Equities Inc. (ARE) stock had its last reported insider trading activity 16 days ago on Dec 15. In this transaction, the insider spent $1,055,001. President and CFO, Shigenaga Dean A, disposed of 9,000 shares at a price of $152.51 on Dec 14. The insider now owns more than $1,372,590 worth of shares. Prior to that, Chief Executive Officer Moglia Peter M went on to Sale 2,000 shares at $151.89 each on Dec 13. An amount of $303,780 was transacted.

Valuation Metrics

Alexandria Real Estate Equities Inc. (ARE) has a trailing price-to-earnings (P/E) ratio of 43.73. The stock’s beta is 0.93. Other valuation ratios to consider include the trailing price-to-sales (P/S) ratio at 9.50, the price-to-book (PB) ratio at 1.34.

The company has a payout ratio of 242.70%. The company’s most recent quarterly dividend payment was $1.21 a share, representing a up of 2.54% from $1.18 last year. Its latest increase dividend $0.03 reported on Monday December 5 2022.

Financial Health

Further, the company has a long term debt to equity ratio of 0.60 and a total debt to equity ratio of 0.60 for the quarter ending September 29. Its gross profit as reported stood at $518.07 million compared to revenue of $2.11 billion.

For investors, determining the potential profitability of the investment also depends on the performance of the company’s management. In the past 12 months, Alexandria Real Estate Equities Inc.’s return on assets was 1.00%.

Earnings Surprise

For the three-month period that ended September 29, Alexandria Real Estate Equities Inc. had $40.59 million in total debt. In the quarter under review, the net income was up than the previous quarter. The company posted a net income of $341.44 million in the quarter, while revenues of $269.28 million were grew 70.34%. The analyst consensus anticipated Alexandria Real Estate Equities Inc.’s latest quarter earnings to come in at $0.68 per share, but it turned out to be $2.11, a 210.30% surprise. For the quarter, EBITDA amounted to $388.66 million. At the end of the quarter ending September 29, Alexandria Real Estate Equities Inc.’s stock balance sheet showed total debt was $10.93 billion. Shareholders own equity worth $164.09 million.

Technical Picture

From a technical analysis perspective, let’s take a brief look at Alexandria Real Estate Equities Inc. (ARE) price momentum. RSI 9-day as of the close on 30 December was 45.25%, suggesting the stock is Neutral, with historical volatility in this time frame at 25.50%.

As of today, ARE’s price is $145.60 -0.27% or -$0.40 from its 5-day moving average. ARE is currently trading -5.94% lower than its 20-day SMA and -10.11% lower than its 100-day SMA. However, the stock’s current price level is +11.55% above the SMA50 and -23.98% below the SMA200.

The stochastic %K and %D were 18.36% and 21.23%, respectively, and the average true range (ATR) was 3.58. With the 14-day stochastic at 24.80% and the average true range at 3.70, the RSI (14) stands at 46.63%. The stock has reached -0.78 on the 9-day MACD Oscillator while the 14-day reading was at -2.44.

Analyst Ratings

Credit Suisse launched coverage on Alexandria Real Estate Equities Inc. (NYSE: ARE) in its analyst report released on June 23, 2022. The firm assigned the stock a Neutral rating.

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