Essex Property Trust $ESS Stock MACD Buy Signal

  • Post category:Analysts Activity
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ESS stock gave a MACD buy signal on December 13, 2021, when the rest of the market closed down -0.7%. The excellent relative strength appears to be coming from positive analyst actions in the stock.

Essex Property Trust Declares Quarterly Distributions

On December 10, 2021, Essex Property Trust, Inc. (NYSE:ESS) announced that its Board of Directors has declared a regular quarterly cash dividend of $2.09 per common share, payable January 14, 2022 to shareholders of record as of January 3, 2022.

Essex Property Trust, Inc., an S&P 500 company, is a fully integrated real estate investment trust (REIT) that acquires, develops, redevelops, and manages multifamily residential properties in selected West Coast markets. Essex currently has ownership interests in 247 apartment communities comprising approximately 60,000 apartment homes with an additional 3 properties in various stages of active development.

ESS stock price target raised to $363 from $349 at KeyBanc

On December 7, 2021, KeyBanc analyst Jordan Sadler raised the firm’s price target on ESS stock to $363 from $349 to reflect Q3 operating results. The analyst keeps an Overweight rating on the shares.

Stifel starts ESS stock at Buy with $390 price target

On December 7, 2021, Stifel analyst Simon Yarmak initiated coverage of ESS stock with a Buy rating and $390 price target. Essex has a high quality portfolio in eight coastal markets in California and Washington State that show strong economic growth with minimal supply pressure, Yarmak tells investors. His 2021 normalized FFO estimate is above the high end of the company’s revised guidance and he is above the Street in terms of 2022 and 2023 FFO estimates and believes forecasts are likely to move higher over the coming months, Yarmak added.

ESS stock price target raised to $366 from $337 at Truist

On December 6, 2021, Truist analyst Michael Lewis raised the firm’s price target on ESS stock to $366 from $337 and keeps a Buy rating on the shares as part of a broader research note on Multifamily REITs. The analyst cites the group’s “significantly stronger” than projected rent spreads in Q3 and into Q4 along with expectations for continued strong fundamentals.

Essex Announces Third Quarter 2021 Results and Increases Full-Year 2021 Guidance

On October 26, 2021, Essex Property Trust, Inc. (NYSE: ESS) announced its third quarter 2021 earnings results and related business activities.

Third Quarter 2021 Highlights:

  1. Reported Net Income per diluted share for the third quarter of 2021 of $1.82, compared to $1.13 in the third quarter of 2020 due to a higher gain on sale of real estate and no loss on early retirement of debt in the current quarter.
  2. Reported Core FFO per diluted share of $3.12, exceeding the high-end of the Company’s guidance range due to better-than-expected operating results.
  3. Same-property revenues and net operating income (“NOI”) increased by 2.7% and 2.2%, respectively, compared to the third quarter of 2020. The improvement is largely attributed to declining concessions in the current period compared to the prior-year period.
  4. Same-property sequential revenues increased 3.2% led by an increase in scheduled rents and lower levels of concessions and delinquencies.
  5. Acquired one apartment community for $53.0 million and two operating commercial properties for future apartment development for contract prices totaling $86.0 million.
  6. Increased full-year Net Income per diluted share guidance range to $6.39 to $6.49. Provided Net Income guidance range for the fourth quarter of 2021 of $0.99 to $1.09 per diluted share.
  7. Raised the midpoint of full-year guidance for same-property revenues and NOI by 0.2% and 0.3% respectively. Raised full-year Core FFO per diluted share guidance by $0.11 at the midpoint, to $12.44, representing a 2.3% increase from the midpoint of the Company’s original guidance.

“For the second consecutive quarter, we are pleased to report Core FFO that exceeded our expectations, driven by improving net effective rent growth. The economic recovery on the West Coast has led to a significant increase in demand for housing and September net effective rents are 6.4% above pre-COVID levels for our portfolio. The strong recovery in fundamentals and rents has led us to increase our guidance for the third time this year. We remain cautiously optimistic that the West Coast is still in the early stages of the recovery with office re-openings and associated economic growth representing an additional catalyst for continuous rental demand,” commented Michael J. Schall, President and CEO of the Company.

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ESS Stock Technical Analysis

Ess Stock

The long and short-term trends are both positive. This is looking good! ESS is part of the Equity Real Estate Investment Trusts (REITs) industry. There are 230 other stocks in this industry. ESS outperforms 82% of them. ESS is currently trading near its 52 week high, which is a good sign. The S&P500 Index however is also trading near new highs, which makes the performance in line with the market. There is a support zone ranging from 328.15 to 345.37. This zone is formed by a combination of multiple trend lines and important moving averages in multiple time frames. There is a resistance zone ranging from 352.48 to 357.26. This zone is formed by a combination of multiple trend lines in multiple time frames. Click here to sign up for email alerts on ESS stock.

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