Equity Residential Upgraded to Hold as Analysts Adjust Ratings

Equity Residential (NYSE:EQR) received an upgrade from Wall Street Zen, moving from a sell rating to a hold rating, according to a report published on Saturday. This adjustment reflects a broader reassessment of the company’s stock, as several analysts have recently revised their price targets and ratings for the real estate investment trust.

Analysts have shown varied perspectives on Equity Residential, with Morgan Stanley reducing its price target from $76.50 to $75.00 while maintaining an “equal weight” rating. Cantor Fitzgerald initiated coverage on the company, issuing an “overweight” rating with a target price of $70.00. Meanwhile, Evercore ISI also lowered its price target from $72.00 to $71.00, yet maintained an “outperform” rating.

Wells Fargo & Company provided a more cautious outlook by dropping its price target significantly from $75.00 to $68.00 and retaining an “equal weight” rating. UBS Group previously set a buy rating, reducing its price objective from $84.00 to $76.00. Currently, seven analysts have rated the stock as a buy, while ten have assigned it a hold rating. According to MarketBeat.com, the average rating for Equity Residential stands at “hold,” with an average target price of $73.57.

Recent Financial Performance

Equity Residential released its quarterly earnings data on August 4, 2023, reporting earnings per share (EPS) of $0.99, which met analysts’ expectations. The company achieved a return on equity of 9.05% and a net margin of 33.22%. Revenue for the quarter was $768.83 million, slightly below the consensus estimate of $770.60 million. In comparison to the same period last year, the company’s revenue increased by 4.7%. For fiscal year 2025, the company set its guidance at EPS of $3.970-$4.030, with a quarterly guidance of $0.990-$1.030 for Q3.

Dividend Announcement and Institutional Trading

Equity Residential announced a quarterly dividend of $0.6925, which was paid on October 10, 2023. Shareholders on record as of September 25, 2023 received this dividend, translating to an annualized yield of 4.5%. The company’s dividend payout ratio currently stands at 104.53%.

In terms of institutional trading, several hedge funds have adjusted their positions in Equity Residential. Perigon Wealth Management LLC increased its holdings by 1.6% during the third quarter, now owning 83,328 shares valued at approximately $5.4 million. E. Ohman J or Asset Management AB raised its stake by 15.8%, holding 14,662 shares worth around $949,000. Burney Co. also entered the fray by purchasing a new position valued at approximately $206,000.

Overall, institutional investors hold a significant 92.68% of Equity Residential’s shares, indicating strong confidence in the company’s long-term potential.

Equity Residential is dedicated to developing and managing residential properties in urban centers that appeal to affluent renters. The company is a member of the S&P 500 and owns or has investments in 305 properties, comprising 80,683 apartment units, with a strong presence in cities such as Boston, New York, Washington, D.C., Seattle, San Francisco, and expanding into Denver, Atlanta, and Dallas/Fort Worth.

Investors may continue to monitor further analyst ratings and performance indicators as Equity Residential navigates its market position.