J. Safra Sarasin Holding AG significantly increased its investment in Digital Realty Trust, Inc. (NYSE: DLR), raising its stake by an impressive 83.5% during the third quarter of 2023. According to the latest Form 13F filing with the U.S. Securities and Exchange Commission (SEC), the fund now holds 29,345 shares of the real estate investment trust, valued at approximately $5,073,000 at the end of the quarter.
This investment activity is part of a broader trend, with several hedge funds and institutional investors adjusting their positions in Digital Realty Trust. Notably, Pinnacle Bancorp Inc. acquired a new stake worth about $25,000 during the same period. Additionally, South Plains Financial Inc. expanded its investment by 280.5% in the second quarter, bringing its total to 156 shares valued at $27,000. Other notable acquisitions include Tobam and Salomon & Ludwin LLC, both of which purchased new stakes during the third quarter, each valued at approximately $28,000.
As of now, institutional investors and hedge funds collectively own 99.71% of Digital Realty Trust’s stock, highlighting the trust’s appeal among significant financial players.
Stock Performance and Dividend Announcement
On January 16, 2024, Digital Realty Trust’s stock opened at $163.26. The company reported a 12-month low of $129.95 and a high of $182.48. Financial metrics indicate a solid footing, with a current ratio and quick ratio of 2.02 and a debt-to-equity ratio of 0.80. The firm boasts a market capitalization of $56.08 billion, a price-to-earnings (P/E) ratio of 42.19, and a price-to-earnings-growth (PEG) ratio of 3.75.
Digital Realty Trust also announced a quarterly dividend of $1.22 per share, which was paid to investors on January 16. This dividend represents an annualized rate of $4.88, yielding approximately 3.0%. The ex-dividend date was set for December 15, 2023. Notably, the company’s dividend payout ratio (DPR) currently stands at 126.10%, indicating a commitment to returning value to shareholders.
Insider Trading and Analyst Ratings
In related news, Mary Hogan Preusse, a director at Digital Realty Trust, sold 4,166 shares on December 1, 2023, at an average price of $157.42, totaling around $655,811.72. Insider ownership remains low, with just 0.17% of the stock held by company insiders.
Wall Street analysts have weighed in on Digital Realty Trust’s stock, with various ratings reflecting differing outlooks. UBS Group set a target price of $189.00 in a January report. Meanwhile, Jefferies Financial Group adjusted its target from $206.00 to $184.00 while maintaining a “buy” rating. Other firms like Stifel Nicolaus and Barclays have also provided target prices of $210.00 and $164.00, respectively, while HSBC Global Research upgraded the stock from a “hold” to a “strong-buy” rating.
Overall, analysts have issued a consensus rating of “Moderate Buy” for Digital Realty Trust, with an average target price of $193.22, indicating confidence in the company’s future performance.
As a leading real estate investment trust, Digital Realty Trust, Inc. specializes in owning, acquiring, and operating carrier-neutral data centers, providing essential colocation and interconnection solutions. The firm focuses on large-scale facilities that support the infrastructure needs of various sectors, including cloud providers and content companies, ensuring secure and reliable IT infrastructure.
