Kilroy Realty Corporation (NYSE: KRC): Stock That Needs Special Handling

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The Vanguard Group, Inc. recently announced the acquisition of new stake in Kilroy Realty Corporation (NYSE:KRC). The institutional investor has increased its shareholding in the Real Estate company by 0.71% to 15.16 million shares with purchase of 0.11 million shares. This fresh investment now brings its stake to 13.17% valued currently at $889.8 million. In addition, Cohen & Steers Capital Management. raised its holdings by 0.65 million to 12.06 million shares. And Norges Bank Investment Management has lifted its position by 44.17% or 2.65 million shares – to 8.65 million shares.

With over 0.35 million Kilroy Realty Corporation (KRC) shares trading Tuesday and a closing price of $58.21 on the day, the dollar volume was approximately $20.35 million. The shares have shown a negative weekly performance of -1.47% and its price on 07/21/20 gained nearly 2.18%. Currently, there are 115.07M common shares owned by the public and among those 113.13M shares have been available to trade.

An analysis of what Wall Street brokers have to say about the expected price targets for this stock gives us this picture: 16 analysts who have offered their price forecasts for KRC have a consensus price objective of $69.00. The analysts have set the share’s price value over the next 12 months at a high of $91.00 and a low of $49.00 should the stock experience a downside. Incidentally, analysts’ outlook for the Kilroy Realty Corporation stock is 2.30 for the next 12 months. The average price target is 19.0% above its last price level and an upside to the estimated low will see the stock lose -18.8% over that period. But an upside of 36.03% will see the stock hit the forecast high price target while mean target price for the stock is $69.00.

Insiders at the company have transacted a total of 88 times over the past 12 months, according to data filed with the U.S. Securities and Exchange Commission (SEC). 66 of these insider trades were purchases, accounting for 224,875 shares. Insider sales of the common stock occurred on 22 occasions, with total insider shares sold totaling 154,061 shares.

The top 3 mutual fund holders in Kilroy Realty Corporation are Government Pension Fund – Global, Stichting Pensioenfonds ABP (Glob, and Vanguard Real Estate Index Fund. Government Pension Fund – Global owns 8.65 million shares of the company’s stock, all valued at over $507.96 million. The company bought an additional 2.65 million shares recently to bring their total holdings to about 7.52% of the shares outstanding. Stichting Pensioenfonds ABP (Glob bought 0.11 million shares to see its total holdings expand to 4.91 million shares valued at over $288.22 million and representing 4.27% of the shares outstanding. Vanguard Real Estate Index Fund bought 33462.0 shares to bring its total holdings to over 4.29 million shares at a value of $251.54 million. Vanguard Real Estate Index Fund now owns shares totaling to 3.72% of the shares outstanding.

Shares of Kilroy Realty Corporation (NYSE: KRC) opened at $57.12, up $0.15 from a prior closing price of $56.97. However, the script later closed the day at $58.21, up 2.18%. The company’s stock has a 5-day price change of -1.47% and -5.93% over the past three months. KRC shares are trading -32.10% year to date (YTD), with the 12-month market performance down to -25.77% lower. It has a 12-month low price of $45.96 and touched a high of $88.99 over the same period. Currently, 0.35 million shares have been traded, compared to an average intraday trading volume of 1.02 million shares. The stock is trading above its simple moving averages at the SMA20, SMA50, and SMA200, as the current price level is off by -0.36%, -1.96%, and -18.85% respectively.

Institutional ownership of Kilroy Realty Corporation (NYSE: KRC) 115.07M shares outstanding. Mutual fund holders own 44.83%, while other institutional holders and individual stakeholders account for 60.16% and 2.73% respectively.

It has a market capitalization of $6.52B and a beta (3y monthly) value of 0.71. The stock’s trailing 12-month PE ratio is 30.63, while the earnings-per-share (ttm) stands at $1.86. The company has a PEG of 3.83 and the debt-to-equity ratio at 0.74. Price movements for the stock have been influenced by the stock’s volatility, which stands at 2.45% over the week and 2.94% over the month.

Analysts forecast that Kilroy Realty Corporation (KRC) will achieve an EPS of $0.39 for the current quarter, $0.39 for the next quarter and $1.75 for 2021. The lowest estimate earnings-per-share for the quarter is $0.36 while analysts give the company a high EPS estimate of $0.44. Comparatively, EPS for the current quarter was $0.41 a year ago. Earnings per share for the fiscal year are expected to decrease by -27.00%, and 12.15% over the next financial year. EPS should shrink at an annualized rate of 8.00% over the next five years, compared to 29.50% over the past 5-year period.

If you are looking to buy this stock, then you may note that the average analyst recommendation by 16 brokerage firm advisors rate Kilroy Realty Corporation (KRC) as a “Moderate Buy” at a consensus score of 2.30. Specifically, 8 Wall Street analysts polled rate the stock as a buy, while 7 of the 16 advise that investors “hold,” and 1 rated it as a “Sell.”

Looking at the support for the KRC, a number of firms have released research notes about the stock. Deutsche Bank stated their Sell rating for the stock in a research note on July 20, 2020, with the firm’s price target at $49. BofA/Merrill coverage for the Kilroy Realty Corporation (KRC) stock in a research note released on June 24, 2020 offered a Neutral rating with a price target of $68. Jefferies was of a view on April 16, 2020 that the stock is Hold, while Robert W. Baird gave the stock Neutral rating on April 06, 2020, issuing a price target of $53. BTIG Research on their part issued Neutral rating on January 06, 2020.

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