San Mateo, California-based Essex Property Trust, Inc. (ESS) is a prominent real estate investment trust (REIT) specializing in multifamily residential properties. Valued at a market cap of $18.3 billion, Essex Property Trust owns, manages, and develops high-quality apartment communities in West Coast markets.
Companies valued at $10 billion or more are classified as “large-cap” stocks, and Essex Property Trust fits right into this category, reflecting its significant scale, stability, and leadership within the multifamily residential real estate sector.
ESS shares have retreated 10.5% from their 52-week high of $317.73, which they hit on Sep. 17. However, the stock has declined 8.2% over the past three months, lagging behind the S&P 500 Index’s ($SPX) 4.5% returns over the same time frame.
In the longer term, ESS has surged 2.2% over the past six months, and the shares have gained 16.4% over the past 52 weeks. In comparison, SPX has surged 9.3% and 25.7% over the same time periods.
While ESS has been trading above the 200-day moving average since late February, it has been trading below its 50-day moving average since mid-December.
On Dec. 17, shares of Essex Property dropped more than 1% after JPMorgan Chase & Co. (JPM) downgraded the stock from “Neutral” to “Underweight.”
Moreover, on Oct. 29, the company posted its Q3 earnings report, and its shares dropped more than 5% in the next three trading sessions. Its FFO of $3.91 per share was well above the consensus estimate. The company posted revenue of $450.7 million in the period, also exceeding Street forecasts
In the competitive landscape of residential REITs, top rival AvalonBay Communities, Inc. (AVB) has outperformed ESS with an 18.4% gain over the past year.
Analysts are cautious about ESS’ prospects. The stock has a consensus rating of “Hold” from 27 analysts in coverage. The stock has a mean price target of $307.65, which indicates a potential upswing of 8.2% from the prevailing market prices.
On the date of publication, Kritika Sarmah 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
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