Zacks Investment Research Lowers UDR (UDR) to Hold

Zacks Investment Research cut shares of UDR (NYSE:UDR) from a buy rating to a hold rating in a research note released on Thursday.

According to Zacks, “Shares of UDR have outperformed its industry over the past three months. Recently, the company reported third-quarter 2018 funds from operations (FFO) as adjusted per share of 49 cents, which came in line with the Zacks Consensus Estimate and higher than the prior-year tally of 47 cents. Total revenues in the reported quarter climbed 6% year over year. This upside primarily stemmed from growth in revenues from operating and lease-up communities. The company has also raised its guidance for 2018. UDR’s portfolio, located in the targeted U.S. markets, has a superior product mix. Specifically, favorable demographics, household formation, recovering economy and job-market growth are expected to drive demand for its properties. The company also adheres to disciplined capital allocation. However, UDR has been dealing with escalating deliveries in a number of its markets. Rate hike adds to its woes.”

Other research analysts also recently issued reports about the stock. Stifel Nicolaus upped their target price on shares of UDR from $40.00 to $43.00 and gave the company a buy rating in a research report on Tuesday, September 25th. Robert W. Baird restated a buy rating and set a $40.00 target price on shares of UDR in a research report on Thursday, August 16th. ValuEngine upgraded shares of UDR from a hold rating to a buy rating in a research report on Wednesday, October 24th. Capital One Financial initiated coverage on shares of UDR in a research report on Monday, November 19th. They set an equal weight rating and a $43.00 target price on the stock. Finally, Barclays restated a hold rating and set a $39.00 target price on shares of UDR in a research report on Sunday, October 14th. Two research analysts have rated the stock with a sell rating, eleven have given a hold rating and five have assigned a buy rating to the company. The company presently has an average rating of Hold and an average target price of $40.00.

Shares of NYSE UDR opened at $41.19 on Thursday. The stock has a market cap of $11.06 billion, a P/E ratio of 22.03, a P/E/G ratio of 3.51 and a beta of 0.32. The company has a debt-to-equity ratio of 1.49, a quick ratio of 5.97 and a current ratio of 5.97. UDR has a 12-month low of $32.88 and a 12-month high of $41.64.

UDR (NYSE:UDR) last issued its quarterly earnings results on Monday, October 29th. The real estate investment trust reported $0.07 earnings per share (EPS) for the quarter, hitting the Thomson Reuters’ consensus estimate of $0.07. The business had revenue of $266.10 million for the quarter, compared to the consensus estimate of $258.90 million. UDR had a net margin of 18.43% and a return on equity of 7.09%. The firm’s quarterly revenue was up 6.0% on a year-over-year basis. During the same quarter in the prior year, the company earned $0.06 EPS. On average, sell-side analysts forecast that UDR will post 1.94 earnings per share for the current fiscal year.

The business also recently declared a quarterly dividend, which was paid on Wednesday, October 31st. Stockholders of record on Wednesday, October 10th were paid a $0.3323 dividend. The ex-dividend date of this dividend was Tuesday, October 9th. This is a boost from UDR’s previous quarterly dividend of $0.32. This represents a $1.33 dividend on an annualized basis and a dividend yield of 3.23%. UDR’s dividend payout ratio is 68.98%.

In other news, CEO Thomas W. Toomey sold 40,000 shares of the company’s stock in a transaction dated Wednesday, November 14th. The stock was sold at an average price of $41.20, for a total value of $1,648,000.00. Following the completion of the sale, the chief executive officer now directly owns 1,746,826 shares of the company’s stock, valued at approximately $71,969,231.20. The sale was disclosed in a document filed with the SEC, which is accessible through this hyperlink. Also, SVP Harry G. Alcock sold 10,000 shares of the company’s stock in a transaction dated Thursday, September 13th. The shares were sold at an average price of $40.45, for a total value of $404,500.00. Following the completion of the sale, the senior vice president now directly owns 126,123 shares of the company’s stock, valued at $5,101,675.35. The disclosure for this sale can be found here. Over the last ninety days, insiders sold 74,773 shares of company stock valued at $3,062,629. 3.16% of the stock is currently owned by company insiders.

Several hedge funds have recently made changes to their positions in the company. Piedmont Investment Advisors LLC bought a new stake in UDR during the 2nd quarter worth approximately $118,000. Point72 Hong Kong Ltd increased its stake in UDR by 1,406.2% during the 2nd quarter. Point72 Hong Kong Ltd now owns 3,886 shares of the real estate investment trust’s stock worth $146,000 after purchasing an additional 3,628 shares in the last quarter. C M Bidwell & Associates Ltd. bought a new stake in UDR during the 3rd quarter worth approximately $186,000. Lourd Capital LLC bought a new stake in UDR during the 3rd quarter worth approximately $217,000. Finally, CAPROCK Group Inc. bought a new stake in UDR during the 3rd quarter worth approximately $219,000. 96.13% of the stock is owned by institutional investors.

About UDR

UDR, Inc (NYSE: UDR), an S&P 500 company, is a leading multifamily real estate investment trust with a demonstrated performance history of delivering superior and dependable returns by successfully managing, buying, selling, developing and redeveloping attractive real estate properties in targeted U.S.

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