Rhumbline Advisers Increases Stake in AvalonBay Communities by 3.5%

Rhumbline Advisers has boosted its stake in AvalonBay Communities, Inc. (NYSE:AVB) by 3.5% during the second quarter of 2023. According to its latest filing with the Securities and Exchange Commission (SEC), the investment firm now owns 309,421 shares of the real estate investment trust, worth approximately $62,967,000. This increase followed the acquisition of an additional 10,324 shares during the reporting period.

The trend among institutional investors is noteworthy. Clearstead Trust LLC enhanced its position in AvalonBay Communities by an impressive 62.0%, now holding 162 shares valued at $33,000. Sound Income Strategies LLC saw an even larger increase, lifting its stake by 76.4% to own 187 shares, valued at $38,000. Other notable transactions include Zions Bancorporation National Association UT and Capital Analysts LLC, which established new stakes worth approximately $50,000 and $53,000, respectively. This surge in institutional ownership highlights the growing interest in AvalonBay, with hedge funds and other institutional investors now controlling 92.61% of the company’s stock.

Analysts Adjust Ratings and Price Targets

Recent reports from financial analysts have led to adjustments in the ratings and price targets for AvalonBay Communities. BNP Paribas downgraded the stock from a “strong-buy” to a “hold” rating on September 29, 2023. Similarly, analysts at BNP Paribas Exane changed their rating from “outperform” to “neutral” on the same date. In contrast, Wall Street Zen upgraded AvalonBay from a “sell” to a “hold” on November 1, 2023.

Cantor Fitzgerald initiated coverage with a “neutral” rating and set a price target of $205.00 for the stock. Additionally, Mizuho reaffirmed a “neutral” rating, reducing its price target from $213.00 to $199.00. Overall, five analysts rated the stock as a Buy, while twelve issued Hold ratings, leading to a consensus rating of “Hold” and an average price target of $209.35, according to data from MarketBeat.

AvalonBay Communities’ Financial Performance

AvalonBay Communities recently reported its quarterly earnings on October 30, 2023. The real estate investment trust posted earnings per share of $2.75, falling short of the consensus estimate of $2.81 by $0.06. Despite this miss, the company generated revenue of $766.80 million, slightly surpassing analysts’ expectations of $766.22 million. In the same quarter last year, AvalonBay reported earnings of $2.74 per share.

Looking ahead, sell-side analysts anticipate AvalonBay Communities will report earnings per share of $11.48 for the current fiscal year. The company’s financial metrics indicate a market capitalization of $25.54 billion, a price-to-earnings ratio of 22.03, and a PEG ratio of 2.54. The stock has experienced a 52-week range with a low of $166.73 and a high of $239.29.

AvalonBay also announced a quarterly dividend of $1.75, which is set to be paid on January 15, 2024. Shareholders of record as of December 31, 2023, will receive this dividend, which translates to an annualized dividend of $7.00 and a yield of 3.9%. The company’s payout ratio currently stands at 85.47%.

AvalonBay Communities, Inc. is a prominent real estate investment trust focused on the development, acquisition, ownership, and management of multifamily communities. Its operational segments include Same Store, Other Stabilized, and Development or Redevelopment, with the Same Store segment representing communities with stabilized occupancy.

For ongoing updates on AvalonBay and related investment activities, interested parties can consult HoldingsChannel.com for the latest 13F filings and insider trades.