Digital Realty Trust Inc. (NYSE: DLR) Loses -4.64% From High. Why That Could Change?

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    The Vanguard Group, Inc. recently announced the acquisition of new stake in Digital Realty Trust Inc. (NYSE:DLR). The institutional investor has increased its shareholding in the Real Estate company by 10.57% to 37.23 million shares with purchase of 3.56 million shares. This fresh investment now brings its stake to 13.88% valued currently at $5.29 billion. In addition, BlackRock Fund Advisors raised its holdings by 2.62 million to 17.45 million shares. And SSgA Funds Management, Inc. has lifted its position by 23.40% or 3.28 million shares – to 17.31 million shares.

    With over 1.58 million Digital Realty Trust Inc. (DLR) shares trading Friday and a closing price of $151.01 on the day, the dollar volume was approximately $238.28 million. The shares have shown a positive weekly performance of 4.69% and its price on 07/24/20 gained nearly 2.73%. Currently, there are 268.31M common shares owned by the public and among those 267.27M 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: 24 analysts who have offered their price forecasts for DLR have a consensus price objective of $150.95. The analysts have set the share’s price value over the next 12 months at a high of $186.00 and a low of $126.00 should the stock experience a downside. Incidentally, analysts’ outlook for the Digital Realty Trust Inc. stock is 2.30 for the next 12 months. The average price target is -2.11% below its last price level and a downside to the estimated low will see the stock lose -19.85% over that period. But an upside of 18.81% will see the stock hit the forecast high price target while mean target price for the stock is $150.00.

    Insiders at the company have transacted a total of 154 times over the past 12 months, according to data filed with the U.S. Securities and Exchange Commission (SEC). 78 of these insider trades were purchases, accounting for 1,307,386 shares. Insider sales of the common stock occurred on 76 occasions, with total insider shares sold totaling 501,709 shares.

    The top 3 mutual fund holders in Digital Realty Trust Inc. are Vanguard Real Estate Index Fund, American Funds Income Fund of Ame, and Stichting Pensioenfonds ABP (Glob. Vanguard Real Estate Index Fund owns 11.15 million shares of the company’s stock, all valued at over $1.58 billion. The company bought an additional 92763.0 shares recently to bring their total holdings to about 4.16% of the shares outstanding. American Funds Income Fund of Ame bought 0.45 million shares to see its total holdings expand to 10.45 million shares valued at over $1.48 billion and representing 3.89% of the shares outstanding. Stichting Pensioenfonds ABP (Glob bought 0.17 million shares to bring its total holdings to over 9.19 million shares at a value of $1.31 billion. Stichting Pensioenfonds ABP (Glob now owns shares totaling to 3.43% of the shares outstanding.

    Shares of Digital Realty Trust Inc. (NYSE: DLR) opened at $145.60, down -$1.39 from a prior closing price of $146.99. However, the script later closed the day at $151.01, up 2.73%. The company’s stock has a 5-day price change of 4.69% and -2.09% over the past three months. DLR shares are trading 26.11% year to date (YTD), with the 12-month market performance up to 35.40% higher. It has a 12-month low price of $105.00 and touched a high of $158.36 over the same period. Currently, 1.58 million shares have been traded, compared to an average intraday trading volume of 2.12 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 4.19%, 6.94%, and 14.48% respectively.

    Institutional ownership of Digital Realty Trust Inc. (NYSE: DLR) shares accounts for 89.95% of the company’s 268.31M shares outstanding. Mutual fund holders own 36.45%, while other institutional holders and individual stakeholders account for 68.59% and 0.61% respectively.

    It has a market capitalization of $40.19B and a beta (3y monthly) value of 0.21. The stock’s trailing 12-month PE ratio is 54.05, while the earnings-per-share (ttm) stands at $2.79. The company has a PEG of 3.24 and the debt-to-equity ratio at 0.82. Price movements for the stock have been influenced by the stock’s volatility, which stands at 2.36% over the week and 2.70% over the month.

    Analysts forecast that Digital Realty Trust Inc. (DLR) will achieve an EPS of $0.28 for the current quarter, $0.3 for the next quarter and $1.6 for 2021. The lowest estimate earnings-per-share for the quarter is $0.04 while analysts give the company a high EPS estimate of $0.75. Comparatively, EPS for the current quarter was $0.15 a year ago. Earnings per share for the fiscal year are expected to increase by 94.60%, and -6.09% over the next financial year. EPS should shrink at an annualized rate of 16.66% over the next five years, compared to 18.80% over the past 5-year period.

    If you are looking to buy this stock, then you may note that the average analyst recommendation by 24 brokerage firm advisors rate Digital Realty Trust Inc. (DLR) as a “Moderate Buy” at a consensus score of 2.30. Specifically, 12 Wall Street analysts polled rate the stock as a buy, while 11 of the 24 advise that investors “hold,” and 0 rated it as a “Sell.”

    Looking at the support for the DLR, a number of firms have released research notes about the stock. Barclays stated their Overweight rating for the stock in a research note on July 15, 2020, with the firm’s price target at $165. Edward Jones coverage for the Digital Realty Trust Inc. (DLR) stock in a research note released on July 14, 2020 offered a Hold rating with a price target of. Morgan Stanley was of a view on June 24, 2020 that the stock is Equal-Weight, while Deutsche Bank gave the stock Buy rating on June 05, 2020, issuing a price target of $155. Credit Suisse on their part issued Outperform rating on June 01, 2020.

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