Investment analysts at Wall Street Zen have upgraded Stag Industrial (NYSE: STAG) from a “sell” rating to a “hold” rating in a research note released on Saturday. This change reflects a growing confidence in the real estate investment trust (REIT), which specializes in single-tenant industrial properties across the United States.
Several other investment firms have recently evaluated Stag Industrial, contributing to a more nuanced view of the company’s stock. For instance, on January 13, 2023, iA Financial set a price target of $39.00 for Stag Industrial. Additionally, Weiss Ratings reaffirmed a “buy (b)” rating on December 22, 2022. Royal Bank of Canada increased their price target from $38.00 to $42.00 on November 6, 2022, while also assigning a “sector perform” rating. Citigroup raised its price target from $35.00 to $40.00, giving the stock a “neutral” rating on November 11, 2022. Finally, Robert W. Baird lifted their price objective from $38.00 to $39.00, also rating it as “neutral” on November 4, 2022.
Currently, three research analysts rate Stag Industrial as a “buy,” while five assign a “hold” rating, and one gives a “sell” rating. According to data from MarketBeat, the consensus rating for the stock stands at “hold,” with an average price target of $39.33.
Institutional Investors Take Notice
Institutional investors and hedge funds are actively managing their positions in Stag Industrial. State Street Corp increased its holdings by 1.5% during the second quarter, now owning 9,539,842 shares valued at approximately $347.3 million after purchasing an additional 142,132 shares. Norges Bank acquired a new position valued at $282.9 million during the same period.
AllianceBernstein L.P. raised its position in Stag Industrial by 4.3% in the second quarter, now holding 3,950,923 shares valued at around $143.3 million following the acquisition of an additional 162,887 shares. Additionally, Cbre Investment Management Listed Real Assets LLC increased its stake by 10.7% in the third quarter, now owning 3,911,540 shares worth about $138 million. Geode Capital Management LLC also boosted its position by 1.3% during the second quarter, owning 3,684,395 shares valued at approximately $133.7 million. Notably, institutional investors now hold 88.67% of Stag Industrial’s stock.
Understanding Stag Industrial
Stag Industrial, Inc. is a prominent real estate investment trust that focuses on acquiring, owning, and operating single-tenant industrial properties throughout the United States. The company’s portfolio prominently features free-standing warehouses, distribution centers, and light manufacturing facilities, all tailored to meet the logistical needs of a diverse tenant base.
Since its inception in 2010 and initial public offering in 2011, Stag Industrial has employed a disciplined investment strategy that prioritizes high-quality, well-located assets. The company aims to generate stable rental income and achieve attractive risk-adjusted returns for its shareholders by concentrating on properties with straightforward layouts and minimal common-area maintenance.
As analysts continue to evaluate Stag Industrial, investors are advised to monitor the evolving landscape of institutional investment and market sentiment regarding the REIT’s performance.
