Zacks Investment Research downgraded shares of Boston Properties (NYSE:BXP) from a hold rating to a sell rating in a report released on Tuesday.
According to Zacks, “Shares of Boston Properties have underperformed its industry, over the past year. Also, the stock has seen the Zacks Consensus Estimate for fourth-quarter 2017 funds from operations (FFO) per share being revised downward in two months’ time. Notably, there is growth in supply of office space in the market and this remains a concern because higher supply usually leads to lesser absorption and also curtails the landlord’s capability to demand more rents. There is also a trend of increased concessions in some of the markets. Moreover, big financial players are opting for resizing of their business and cost containment efforts, which is affecting demand for office space. Furthermore, rate hikes have added to its woes. Nevertheless, Boston Properties’ assets located in select, high-rent, high barrier-to-entry geographic markets, diversified tenant and industry base have the capacity to drive long-term growth.”
BXP has been the topic of a number of other research reports. Robert W. Baird reaffirmed a hold rating and issued a $125.00 target price on shares of Boston Properties in a report on Tuesday. Argus lowered their target price on Boston Properties to $140.00 and set a buy rating on the stock in a report on Thursday, November 16th. Evercore ISI reaffirmed an in-line rating and issued a $133.00 target price (up previously from $127.00) on shares of Boston Properties in a report on Friday, October 6th. KeyCorp reaffirmed a hold rating on shares of Boston Properties in a report on Friday, November 3rd. Finally, Mizuho reaffirmed a hold rating and issued a $122.00 target price on shares of Boston Properties in a report on Friday, November 3rd. Two research analysts have rated the stock with a sell rating, eight have assigned a hold rating and three have issued a buy rating to the company’s stock. Boston Properties currently has a consensus rating of Hold and a consensus price target of $131.00.
Shares of Boston Properties (NYSE:BXP) traded down $1.53 during mid-day trading on Tuesday, hitting $122.33. The company had a trading volume of 637,036 shares, compared to its average volume of 798,978. The company has a debt-to-equity ratio of 0.92, a current ratio of 0.44 and a quick ratio of 0.44. Boston Properties has a 1-year low of $116.77 and a 1-year high of $140.13. The company has a market cap of $19,110.00, a P/E ratio of 38.11, a price-to-earnings-growth ratio of 3.60 and a beta of 0.63.
Boston Properties (NYSE:BXP) last released its earnings results on Wednesday, November 1st. The real estate investment trust reported $1.57 earnings per share (EPS) for the quarter, beating the Zacks’ consensus estimate of $1.54 by $0.03. The firm had revenue of $657.70 million for the quarter, compared to analyst estimates of $649.84 million. Boston Properties had a return on equity of 6.43% and a net margin of 19.42%. The company’s revenue was up 5.2% on a year-over-year basis. During the same quarter last year, the firm posted $1.42 EPS. sell-side analysts predict that Boston Properties will post 6.25 earnings per share for the current fiscal year.
The company also recently disclosed a quarterly dividend, which will be paid on Tuesday, January 30th. Stockholders of record on Friday, December 29th will be issued a dividend of $0.80 per share. This represents a $3.20 annualized dividend and a dividend yield of 2.62%. The ex-dividend date is Thursday, December 28th. This is a positive change from Boston Properties’s previous quarterly dividend of $0.75. Boston Properties’s dividend payout ratio (DPR) is presently 99.69%.
In other news, insider Bryan J. Koop sold 5,868 shares of Boston Properties stock in a transaction that occurred on Wednesday, November 8th. The stock was sold at an average price of $124.55, for a total transaction of $730,859.40. Following the sale, the insider now owns 585 shares of the company’s stock, valued at approximately $72,861.75. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. 0.86% of the stock is currently owned by company insiders.
Several large investors have recently made changes to their positions in the company. BlackRock Inc. grew its holdings in shares of Boston Properties by 2.4% during the 2nd quarter. BlackRock Inc. now owns 14,996,676 shares of the real estate investment trust’s stock worth $1,844,893,000 after purchasing an additional 346,189 shares in the last quarter. APG Asset Management US Inc. grew its holdings in shares of Boston Properties by 1.1% during the 3rd quarter. APG Asset Management US Inc. now owns 6,541,092 shares of the real estate investment trust’s stock worth $803,769,000 after purchasing an additional 69,000 shares in the last quarter. JPMorgan Chase & Co. grew its holdings in shares of Boston Properties by 6.0% during the 3rd quarter. JPMorgan Chase & Co. now owns 4,045,846 shares of the real estate investment trust’s stock worth $496,710,000 after purchasing an additional 228,106 shares in the last quarter. Boston Partners grew its holdings in shares of Boston Properties by 0.4% during the 3rd quarter. Boston Partners now owns 2,576,787 shares of the real estate investment trust’s stock worth $316,636,000 after purchasing an additional 9,060 shares in the last quarter. Finally, Northern Trust Corp grew its holdings in shares of Boston Properties by 1.0% during the 2nd quarter. Northern Trust Corp now owns 2,401,500 shares of the real estate investment trust’s stock worth $295,432,000 after purchasing an additional 23,724 shares in the last quarter. 95.22% of the stock is currently owned by institutional investors.
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About Boston Properties
Boston Properties, Inc is a real estate investment trust. The Company is an owner and developer of office properties in the United States. Its segments by geographic area are Boston, New York, San Francisco and Washington, DC. Its segments by property type include Office, Residential and Hotel. As of December 31, 2016, the Company owned or had interests in 174 commercial real estate properties, aggregating approximately 47.7 million net rentable square feet of primarily Class A office properties, including eight properties under construction/redevelopment totaling approximately 4.0 million net rentable square feet.
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