Why should you buy stock in Equity Residential (EQR)?

Equity Residential (NYSE: EQR) is -28.97% lower on its value in year-to-date trading and has touched a low of $49.62 and a high of $89.55 in the current 52-week trading range. The EQR stock was last observed hovering at around $58.77 in the last trading session, with the day’s loss setting it -1.29% off its average median price target of $67.50 for the next 12 months. It is also 22.32% off the consensus price target high of $74.00 offered by 20 analysts, but current levels are -2.64% lower than the price target low of $56.00 for the same period.

Currently trading at $57.48, the stock is -7.76% and -8.04% below its SMA20 and SMA50 respectively. However, with a daily trading volume of 4.95 million and changing -2.19% at the moment leaves the stock -24.47% off its SMA200. EQR registered -25.26% loss for a year compared to 6-month loss of -27.89%. The firm has a 50-day simple moving average (SMA 50) of $61.33 and a 200-day simple moving average (SMA200) of $71.37.

The stock witnessed a -4.63% gain in the last 1 month and extending the period to 3 months gives it a 5.33%, and is -8.06% down over the last 5 days. If we measure the stock’s price variations over the week and the month, we find that the volatility rates stand at 2.92% over the week and 3.32% over the month.

Equity Residential (EQR) has around 2700 employees, a market worth around $22.24B and $2.72B in sales. Current P/E ratio is 18.27 and Fwd P/E is 40.31. Profit margin for the company is 43.10%. Distance from 52-week low is 15.84% and -35.81% from its 52-week high. The company has generated returns on investments over the last 12 months (7.00%).

Equity Residential (EQR) Analyst Forecasts

Analyst recommendations provided by FactSet shows that the consensus forecast for Equity Residential (EQR) is a “Hold”. 20 analysts offering their recommendations for the stock have an average rating of 2.90, where 14 rate it as a Hold and 1 think it is a “Overweight”. 2 of the analysts rate the stock as a “Buy”. 3 analysts have rated the stock as a Sell or Underperform.

Equity Residential is expected to release its quarterly report on 08/04/2020 and quarterly earnings per share for the current quarter are estimated at $0.35 with sales reaching $661.39M over the same period.The EPS is expected to grow by 46.70% this year, but quarterly earnings will post -1.70% year-over-year. Quarterly sales are estimated to shrink -0.90% in year-over-year returns.

Equity Residential (EQR) Top Institutional Holders

881 institutions hold shares in Equity Residential (EQR), with 5.77M shares held by insiders accounting for 1.55% while institutional investors hold 96.41% of the company’s shares. The shares outstanding are 371.58M, and float is at 366.15M with Short Float at 1.44%. Institutions hold 94.92% of the Float.

The top institutional shareholder in the company is Vanguard Group, Inc. (The) with over 48.39 million shares valued at $2.99 billion. The investor’s holdings represent 13.00% of the EQR Shares outstanding. As of Mar 30, 2020, the second largest holder is Blackrock Inc. with 41.12 million shares valued at $2.54 billion to account for 11.05% of the shares outstanding. The other top investors are State Street Corporation which holds 24.24 million shares representing 6.51% and valued at over $1.5 billion, while Norges Bank Investment Management holds 6.42% of the shares totaling 23.88 million with a market value of $1.93 billion.

Equity Residential (EQR) Insider Activity

A total of 37 insider transactions have happened at Equity Residential (EQR) in the last six months, with sales accounting for 14 and purchases happening 23 times. The most recent transaction is an insider sale by NEITHERCUT DAVID J, the company’s Director. SEC filings show that NEITHERCUT DAVID J sold 29,640 shares of the company’s common stock on Feb 19 at a price of $85.66 per share for a total of $2.54 million. Following the sale, the insider now owns 2874.0 shares.

Equity Residential disclosed in a document filed with the SEC on Feb 19 that Parrell Mark J. (President & CEO) sold a total of 50,000 shares of the company’s common stock. The trade occurred on Feb 19 and was made at $85.42 per share for $4.27 million. Following the transaction, the insider now directly holds 20397.0 shares of the EQR stock.

Still, SEC filings show that on Feb 13, NEITHERCUT DAVID J (Director) disposed off 25,000 shares at an average price of $85.20 for $2.13 million. The insider now directly holds 2,874 shares of Equity Residential (EQR).

Equity Residential (EQR): Who are the competitors?

The company’s main competitors (and peers) include American Homes 4 Rent (AMH) that is trading 10.35% up over the past 12 months. AvalonBay Communities Inc. (AVB) is -25.85% down on the 1-year trading charts. Short interest in the company’s stock has risen 9.07% from the last report on Apr 29, 2020 to stand at a total of 4.81 million short shares sold with a short interest ratio of 1.62.