Fintel reports that on July 25, 2023, Truist Securities maintained coverage of Digital Realty Trust (NYSE:DLR) with a Buy recommendation.
Analyst Price Forecast Suggests 5.19% Downside
As of July 6, 2023, the average one-year price target for Digital Realty Trust is 116.73. The forecasts range from a low of 80.80 to a high of $162.75. The average price target represents a decrease of 5.19% from its latest reported closing price of 123.12.
See our leaderboard of companies with the largest price target upside.
The projected annual revenue for Digital Realty Trust is 5,109MM, an increase of 5.48%. The projected annual non-GAAP EPS is 1.23.
Digital Realty Trust Declares $1.22 Dividend
On May 24, 2023 the company declared a regular quarterly dividend of $1.22 per share ($4.88 annualized). Shareholders of record as of June 15, 2023 received the payment on June 30, 2023. Previously, the company paid $1.22 per share.
At the current share price of $123.12 / share, the stock's dividend yield is 3.96%.
Looking back five years and taking a sample every week, the average dividend yield has been 3.58%, the lowest has been 2.65%, and the highest has been 5.44%. The standard deviation of yields is 0.61 (n=236).
The current dividend yield is 0.63 standard deviations above the historical average.
Additionally, the company's dividend payout ratio is 3.81. The payout ratio tells us how much of a company's income is paid out in dividends. A payout ratio of one (1.0) means 100% of the company's income is paid in a dividend. A payout ratio greater than one means the company is dipping into savings in order to maintain its dividend - not a healthy situation. Companies with few growth prospects are expected to pay out most of their income in dividends, which typically means a payout ratio between 0.5 and 1.0. Companies with good growth prospects are expected to retain some earnings in order to invest in those growth prospects, which translates to a payout ratio of zero to 0.5.
The company's 3-Year dividend growth rate is 0.09%, demonstrating that it has increased its dividend over time.
What is the Fund Sentiment?
There are 1698 funds or institutions reporting positions in Digital Realty Trust. This is a decrease of 19 owner(s) or 1.11% in the last quarter. Average portfolio weight of all funds dedicated to DLR is 0.49%, a decrease of 6.43%. Total shares owned by institutions increased in the last three months by 0.81% to 335,829K shares. 
The put/call ratio of DLR is 2.99, indicating a bearish outlook.
What are Other Shareholders Doing?
Cohen & Steers holds 32,028K shares representing 10.99% ownership of the company. In it's prior filing, the firm reported owning 28,222K shares, representing an increase of 11.88%. The firm increased its portfolio allocation in DLR by 8.87% over the last quarter.
VGSIX - Vanguard Real Estate Index Fund Investor Shares holds 12,011K shares representing 4.12% ownership of the company. In it's prior filing, the firm reported owning 12,193K shares, representing a decrease of 1.51%. The firm decreased its portfolio allocation in DLR by 5.57% over the last quarter.
APG Asset Management US holds 10,021K shares representing 3.44% ownership of the company. In it's prior filing, the firm reported owning 9,995K shares, representing an increase of 0.26%. The firm decreased its portfolio allocation in DLR by 0.73% over the last quarter.
VTSMX - Vanguard Total Stock Market Index Fund Investor Shares holds 9,012K shares representing 3.09% ownership of the company. In it's prior filing, the firm reported owning 8,737K shares, representing an increase of 3.05%. The firm decreased its portfolio allocation in DLR by 6.62% over the last quarter.
Principal Financial Group holds 7,171K shares representing 2.46% ownership of the company. In it's prior filing, the firm reported owning 6,994K shares, representing an increase of 2.46%. The firm decreased its portfolio allocation in DLR by 45.86% over the last quarter.
Digital Realty Trust Background Information
(This description is provided by the company.)
Digital Realty supports the world's leading enterprises and service providers by delivering the full spectrum of data center, colocation and interconnection solutions. PlatformDIGITAL®, the company's global data center platform, provides customers a trusted foundation and proven Pervasive Datacenter Architecture (PDx™) solution methodology for scaling digital business and efficiently managing data gravity challenges. Digital Realty's global data center footprint gives customers access to the connected communities that matter to them with more than 290 facilities in 49 metros across 24 countries on six continents.
Additional reading:
- Laurence Chapman
- Amendment No. 3, dated March 16, 2023 to the Second Amended and Restated Global Credit Agreement, dated as of November 18, 2021, among Digital Realty Trust L.P. and the other initial borrowers named therein and additional borrowers party thereto, as borrowers, Digital Realty Trust, Inc., as parent guarantor, the additional guarantors party thereto, as additional guarantors, the banks, financial institutions and other institutional lenders listed therein, as the initial lenders, each issuing bank and swing line bank as listed therein, Citibank N.A., as administrative agent, BofA Securities, Inc. and Citibank, as co-sustainability structuring agents, Bank of America, N.A. and JPMorgan Chase Bank, N.A., as syndication agents, and BofA Securities, Inc., Citibank N.A. and JPMorgan Chase Bank, N.A., as joint lead arrangers and joint bookrunners, and the other agents and lenders named therein.
- Amendment No. 2, dated March 16, 2023, among Digital Realty Trust, L.P., its subsidiary Digital Japan LLC, as the initial borrower, and the additional borrowers named therein, as borrowers, Digital Realty Trust, Inc., and the other guarantors named therein, as guarantors, the banks, financial institutions and other lenders listed therein, as the initial lenders, each issuing bank, as listed therein Sumitomo Mitsui Banking Corporation ("SMBC"), as administrative agent, SMBC, as sustainability structuring agent, SMBC, MUFG Bank Ltd. and Mizuho Bank, Ltd., as joint lead arrangers and joint bookrunners, and the other agents and lenders named therein.
- Form of Class D Profits Interest Unit Agreement (NOI Award).
- Form of Executive Severance Class D Profits Interest Unit Agreement (NOI Award).
This story originally appeared on Fintel.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
