Based in Highlands Ranch, Colorado, UDR, Inc. (UDR) is a leading multifamily real estate investment trust that buys, sells, develops, and redevelops attractive real estate communities in targeted U.S. markets. Valued at a market cap of $14.3 billion, the company is expanding its presence in markets with low housing affordability and favorable demand/supply conditions for multifamily housing as well as job environments.
Companies valued at over $10 billion are typically classified as “large-cap stocks,” and UDR fits the label perfectly with its market cap exceeding this threshold. As a leading REIT for over 51 years, the company is known for delivering long-term value to shareholders, the best standard of service to Residents, and the highest quality experience for Associates.
UDR is currently trading 8.6% below its 52-week high of $47.55, reached on Sep. 16. Moreover, shares of this REIT have declined 6.2% over the past three months, underperforming the broader S&P 500 Index’s ($SPX) 4.5% gains during the same time frame.
Moreover, over the past six months, shares of UDR are up 6.7%, lagging behind SPX’s 9.3% gains over the same time frame. Over the past 52 weeks, UDR has gained 15.4%, falling behind SPX’s nearly 25.7% returns.
To confirm its recent bearish trend, UDR has been trading below its 50-day moving average since mid-December. However, it has remained above its 200-day moving average since late April.
Shares of UDR plunged 3.1% after its Q3 earnings release despite delivering better-than-expected revenues of $420.2 million and FFO of $0.62 per share, which came in line with the consensus estimates. The company also raised its full-year 2024 FFOA per share guidance in the range of $2.47 to $2.49. However, a 1.6% annual decrease in FFO and a decline in effective new lease rate growth might have overshadowed the positives and led to its downward price movement.
UDR has lagged behind its rival, Equity Residential’s (EQR) nearly 16.9% gain over the past 52 weeks but has outpaced EQR’s 4.6% rise over the past six months.
Despite UDR’s recent underperformance, analysts remain moderately optimistic about its prospects. The stock has a consensus rating of “Moderate Buy” from the 24 analysts covering it, and the mean price target of $47.07 suggests a modest 8.3% premium to its current levels.
On the date of publication, Neharika Jain did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here. More news from Barchart- Intuit Stock Is Trading Flat - But Shorting One-Month Puts and Calls Yield 1.0%
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