Fintel reports that on August 28, 2023, Truist Securities upgraded their outlook for UDR (NYSE:UDR) from Hold to Buy.

Analyst Price Forecast Suggests 18.76% Upside

As of August 2, 2023, the average one-year price target for UDR is 46.86. The forecasts range from a low of 43.43 to a high of $53.55. The average price target represents an increase of 18.76% from its latest reported closing price of 39.46.

See our leaderboard of companies with the largest price target upside.

The projected annual revenue for UDR is 1,657MM, an increase of 1.96%. The projected annual non-GAAP EPS is 0.54.

UDR Declares $0.42 Dividend

On June 15, 2023 the company declared a regular quarterly dividend of $0.42 per share ($1.68 annualized). Shareholders of record as of July 10, 2023 received the payment on July 31, 2023. Previously, the company paid $0.42 per share.

At the current share price of $39.46 / share, the stock’s dividend yield is 4.26%.

Looking back five years and taking a sample every week, the average dividend yield has been 3.34%, the lowest has been 2.42%, and the highest has been 4.79%. The standard deviation of yields is 0.55 (n=236).

The current dividend yield is 1.69 standard deviations above the historical average.

Additionally, the company’s dividend payout ratio is 1.24. 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 0.17%, demonstrating that it has increased its dividend over time.

What is the Fund Sentiment?

There are 1064 funds or institutions reporting positions in UDR. This is a decrease of 9 owner(s) or 0.84% in the last quarter. Average portfolio weight of all funds dedicated to UDR is 0.38%, a decrease of 3.43%. Total shares owned by institutions decreased in the last three months by 0.83% to 347,086K shares. The put/call ratio of UDR is 2.41, indicating a bearish outlook.

What are Other Shareholders Doing?

Cohen & Steers holds 28,620K shares representing 8.69% ownership of the company. In it’s prior filing, the firm reported owning 34,190K shares, representing a decrease of 19.46%. The firm decreased its portfolio allocation in UDR by 14.59% over the last quarter.

VGSIX – Vanguard Real Estate Index Fund Investor Shares holds 14,307K shares representing 4.34% ownership of the company. In it’s prior filing, the firm reported owning 14,491K shares, representing a decrease of 1.28%. The firm increased its portfolio allocation in UDR by 6.17% over the last quarter.

Jpmorgan Chase holds 12,888K shares representing 3.91% ownership of the company. In it’s prior filing, the firm reported owning 13,691K shares, representing a decrease of 6.23%. The firm increased its portfolio allocation in UDR by 599.66% over the last quarter.

Invesco holds 11,389K shares representing 3.46% ownership of the company. In it’s prior filing, the firm reported owning 12,831K shares, representing a decrease of 12.66%. The firm increased its portfolio allocation in UDR by 842.88% over the last quarter.

VTSMX – Vanguard Total Stock Market Index Fund Investor Shares holds 10,265K shares representing 3.12% ownership of the company. In it’s prior filing, the firm reported owning 10,182K shares, representing an increase of 0.81%. The firm decreased its portfolio allocation in UDR by 2.68% over the last quarter.

UDR Background Information
(This description is provided by the company.)

UDR, Inc., an S&P 500 company, is a leading multifamily real estate investment trust with a demonstrated performance history of delivering superior and dependable returns by successfully managing, buying, selling, developing and redeveloping attractive real estate properties in targeted U.S. markets. As of September 30, 2020, UDR owned or had an ownership position in 51,649 apartment homes including 1,031 homes under development. For over 48 years, UDR has delivered long-term value to shareholders, the best standard of service to residents and the highest quality experience for associates.

This article originally appeared on Fintel

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