Investment analysts at Wall Street Zen have upgraded their rating for Stag Industrial (NYSE: STAG) from “sell” to “hold.” This change was communicated to investors in a research note released on Saturday, marking a shift in the sentiment surrounding the real estate investment trust (REIT).
Several other analysts have also shared their assessments of Stag Industrial in recent weeks. On January 13, 2024, iA Financial set a price target of $39.00 for the company’s shares. Meanwhile, Weiss Ratings reaffirmed a “buy (b)” rating on December 22, 2023. In a report dated November 6, 2023, the Royal Bank of Canada raised its price target for Stag Industrial from $38.00 to $42.00, assigning a “sector perform” rating. Citigroup also adjusted its outlook, increasing its price target from $35.00 to $40.00 while giving a “neutral” rating on November 11, 2023. Robert W. Baird followed suit, lifting its price objective from $38.00 to $39.00 on November 4, 2023.
Among analysts covering Stag Industrial, three have assigned a “buy” rating, five have issued a “hold” rating, and one has given a “sell” rating. According to data from MarketBeat, the consensus rating for the stock is “hold,” with an average price target of $39.33.
Institutional Investors Increase Stakes in Stag Industrial
Recent trading activity indicates growing interest from institutional investors in Stag Industrial. State Street Corp increased its holdings in the company by 1.5% during the second quarter, bringing its total shares owned to 9,539,842, valued at approximately $347.3 million after acquiring an additional 142,132 shares.
Norges Bank also entered the scene, acquiring a new position valued at $282.9 million during the same period. Additionally, AllianceBernstein L.P. raised its position by 4.3%, now owning 3,950,923 shares valued at $143.3 million after purchasing 162,887 more shares. Cbre Investment Management Listed Real Assets LLC lifted its stake by 10.7% in the third quarter, increasing its holdings to 3,911,540 shares worth $138 million. Lastly, Geode Capital Management LLC added 46,713 shares, boosting its total to 3,684,395 shares, valued at about $133.7 million.
Currently, 88.67% of Stag Industrial’s stock is owned by hedge funds and other institutional investors, reflecting a strong institutional interest in the company.
Understanding Stag Industrial’s Business Model
Founded in 2010 and publicly traded since 2011, Stag Industrial, Inc. is a REIT focused on the acquisition, ownership, and operation of single-tenant industrial properties across the United States. The company primarily targets free-standing warehouses, distribution centers, and light manufacturing facilities to cater to a diverse tenant base.
Stag Industrial aims to deliver stable rental income and attractive risk-adjusted returns for its shareholders by concentrating on properties with straightforward layouts and minimal common-area maintenance. This disciplined investment strategy ensures that the company focuses on high-quality, well-located assets.
As the financial landscape continues to evolve, Stag Industrial remains a noteworthy player within its sector, drawing attention from analysts and institutional investors alike. For those interested in the latest developments, subscribing to financial news updates may provide valuable insights into Stag Industrial and other related companies.
