Analysts at Wall Street Zen have downgraded the stock rating for Acadia Realty Trust (NYSE: AKR) from “hold” to “sell,” as detailed in a research report issued over the weekend. This adjustment reflects a broader reassessment of the company’s market performance and future prospects, following a series of mixed evaluations from various financial institutions.
Recent Analyst Ratings Highlight Mixed Sentiment
Other equities research firms have also recently revised their outlook on Acadia Realty Trust. Truist Financial lowered its price target on the stock from $23.00 to $22.00 while maintaining a “buy” rating in a report released on November 28, 2023. Conversely, Weiss Ratings reaffirmed a “hold (c)” rating on October 8, 2023, indicating a cautious approach.
In a more favorable light, Citigroup upgraded Acadia Realty Trust from “neutral” to “buy,” increasing its price target from $20.00 to $23.00 on September 12, 2023. Meanwhile, LADENBURG THALM/SH SH initiated coverage with a “neutral” rating and a price objective of $21.00. In contrast, Zacks Research downgraded the stock from “hold” to “strong sell” on October 2, 2023.
Currently, two analysts have rated the stock as a “buy,” two have assigned a “hold” rating, and one has issued a “sell” rating. According to data from MarketBeat, Acadia Realty Trust maintains a consensus rating of “hold” alongside an average price target of $22.00.
Financial Performance and Institutional Activity
On October 28, 2023, Acadia Realty Trust announced its quarterly earnings, posting an earnings per share (EPS) of $0.33, meeting analysts’ expectations. The company reported revenue of $101.01 million, surpassing the consensus estimate of $92.78 million. Notably, Acadia achieved a net margin of 4.21% and a return on equity of 0.63%, with quarterly revenue rising by 15.1% year-over-year, compared to $0.32 EPS from the same quarter the previous year.
Looking ahead, Acadia Realty Trust has set its fiscal year 2025 guidance at 1.320-1.340 EPS. Analysts forecast an average EPS of 1.34 for the current year.
Institutional investors have been actively adjusting their positions in Acadia Realty Trust. Massachusetts Financial Services Co. acquired a new stake valued at approximately $64.5 million in the third quarter. Other notable purchases include Engineers Gate Manager LP, which invested around $29.8 million in the second quarter, and Alyeska Investment Group L.P., with a $23.9 million stake acquired in the first quarter.
AllianceBernstein L.P. increased its holdings in Acadia Realty Trust by 26.8%, owning 3,076,073 shares valued at $64.4 million after purchasing an additional 649,459 shares. Meanwhile, State Street Corp boosted its stake by 9.3%, resulting in ownership of 7,450,026 shares worth approximately $139.8 million.
Institutional investors and hedge funds now control 97.65% of Acadia Realty Trust’s stock, reflecting strong confidence in the company’s long-term strategy.
Acadia Realty Trust is recognized as an equity real estate investment trust, focusing on sustainable growth through its Core Portfolio and Fund operations. The company aims to enhance its real estate portfolio by strategically investing in high-potential locations and maintaining a robust balance sheet.
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