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Wells Fargo assigns underweight recommendation to EPR Properties with potential increase of 17.28%

EditorRachael Rajan
Published 22/09/2023, 05:46 am
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EPR
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On Thursday, Wells Fargo (NYSE:WFC) initiated its analysis of EPR Properties (NYSE:EPR), assigning an Underweight recommendation. The one-year average price target for EPR Properties, as of August 31, 2023, stood at $50.15, indicating a potential increase of 17.28% from its most recent closing price of $42.76.

EPR Properties' projected annual revenue is estimated to decline by 16.47% to $566 million. The company's non-GAAP EPS is anticipated to be 2.55 for the year. On August 15, 2023, EPR declared a regular monthly dividend of $0.28 per share ($3.30 annualized), which was paid out to shareholders on record as of August 31, 2023, on September 15, 2023. This dividend represents no change from the previous payout.

With the current share price at $42.76 per share, EPR Properties offers a dividend yield of 7.72%. The average dividend yield for the past five years has been around 7.13%, with the current yield slightly above this historical average by 0.23 standard deviations.

EPR's dividend payout ratio stands at 1.51, suggesting that more than its entire income is being paid out in dividends—an indicator that it may be using savings to maintain its dividend.

Institutional sentiment shows an increase in the number of funds or institutions holding positions in EPR Properties—an increase of seven owners or about 1.07% over the last quarter. The average portfolio weight dedicated to EPR among these funds has increased by approximately 19.26% to 0.17%. However, total shares owned by institutions have decreased by 3.23% in the last three months to 63,268K shares.

Invesco holds 5,489K shares, a 7.29% stake in the company, reflecting a decrease of 1.48% from its previous filing. Vanguard Real Estate Index Fund Investor Shares and Vanguard Total Stock Market Index Fund Investor Shares hold 3,297K and 2,352K shares respectively, both showing changes in their holdings over the last quarter.

EPR Properties is a leading experiential net lease real estate investment trust (REIT), specializing in enduring experiential properties in the real estate industry. The company focuses on venues that facilitate out-of-home leisure and recreational experiences. EPR Properties' investment strategy is centered around key industry, property, and tenant-level cash flow standards, with nearly $6.5 billion in total investments across 44 states.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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