AvalonBay Communities (NYSE:AVB) Shares Gap Down Following Weak Earnings

Shares of AvalonBay Communities, Inc. (NYSE:AVBGet Free Report) gapped down prior to trading on Thursday following a dissappointing earnings announcement. The stock had previously closed at $179.01, but opened at $172.31. AvalonBay Communities shares last traded at $174.72, with a volume of 159,532 shares.

The real estate investment trust reported $1.70 earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of $2.73 by ($1.03). AvalonBay Communities had a return on equity of 8.07% and a net margin of 33.96%. The company had revenue of $704.71 million for the quarter, compared to the consensus estimate of $701.67 million. During the same quarter last year, the business earned $2.59 earnings per share.

AvalonBay Communities Announces Dividend

The firm also recently announced a quarterly dividend, which was paid on Tuesday, January 16th. Shareholders of record on Wednesday, November 29th were issued a $1.65 dividend. The ex-dividend date of this dividend was Thursday, December 28th. This represents a $6.60 dividend on an annualized basis and a yield of 3.70%. AvalonBay Communities’s payout ratio is currently 100.46%.

Wall Street Analysts Forecast Growth

A number of brokerages have weighed in on AVB. Truist Financial downgraded AvalonBay Communities from a “buy” rating to a “hold” rating and lifted their target price for the stock from $202.00 to $203.00 in a report on Tuesday, January 16th. TheStreet downgraded AvalonBay Communities from a “b” rating to a “c+” rating in a report on Wednesday, October 25th. Evercore ISI lifted their target price on AvalonBay Communities from $183.00 to $188.00 and gave the stock an “outperform” rating in a report on Thursday, November 30th. StockNews.com began coverage on AvalonBay Communities in a report on Thursday, October 5th. They issued a “hold” rating for the company. Finally, KeyCorp reiterated a “sector weight” rating on shares of AvalonBay Communities in a report on Friday, January 5th. Eleven investment analysts have rated the stock with a hold rating and six have assigned a buy rating to the stock. Based on data from MarketBeat, AvalonBay Communities has an average rating of “Hold” and an average target price of $196.69.

Get Our Latest Stock Analysis on AVB

Institutional Inflows and Outflows

Hedge funds have recently modified their holdings of the stock. Pinnacle Bancorp Inc. purchased a new position in shares of AvalonBay Communities during the third quarter valued at approximately $26,000. Quarry LP boosted its position in AvalonBay Communities by 255.6% in the second quarter. Quarry LP now owns 192 shares of the real estate investment trust’s stock worth $36,000 after purchasing an additional 138 shares during the last quarter. Castleview Partners LLC boosted its position in AvalonBay Communities by 1,542.9% in the third quarter. Castleview Partners LLC now owns 230 shares of the real estate investment trust’s stock worth $39,000 after purchasing an additional 216 shares during the last quarter. Core Alternative Capital boosted its position in AvalonBay Communities by 305.7% in the second quarter. Core Alternative Capital now owns 215 shares of the real estate investment trust’s stock worth $41,000 after purchasing an additional 162 shares during the last quarter. Finally, Massmutual Trust Co. FSB ADV boosted its position in AvalonBay Communities by 42.3% in the second quarter. Massmutual Trust Co. FSB ADV now owns 222 shares of the real estate investment trust’s stock worth $42,000 after purchasing an additional 66 shares during the last quarter. Hedge funds and other institutional investors own 88.71% of the company’s stock.

AvalonBay Communities Stock Performance

The company has a 50-day simple moving average of $181.17 and a two-hundred day simple moving average of $179.06. The company has a quick ratio of 1.84, a current ratio of 1.84 and a debt-to-equity ratio of 0.67. The firm has a market cap of $25.30 billion, a PE ratio of 27.12, a PEG ratio of 3.26 and a beta of 0.95.

AvalonBay Communities Company Profile

(Get Free Report)

As of September 30, 2023, the Company owned or held a direct or indirect ownership interest in 296 apartment communities containing 89,240 apartment homes in 12 states and the District of Columbia, of which 17 communities were under development and one community was under redevelopment. The Company is an equity REIT in the business of developing, redeveloping, acquiring and managing apartment communities in leading metropolitan areas in New England, the New York/New Jersey Metro area, the Mid-Atlantic, the Pacific Northwest, and Northern and Southern California, as well as in the Company's expansion regions of Raleigh-Durham and Charlotte, North Carolina, Southeast Florida, Dallas and Austin, Texas, and Denver, Colorado.

Further Reading

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