Royal Bank of Canada Lowers Price Target for Extra Space Storage Stock

Royal Bank of Canada has revised its price target for Extra Space Storage (NYSE:EXR) from $167.00 to $163.00. This update was shared in a report released on Thursday, which assigned the company a "sector perform" rating.

The new price target from Royal Bank of Canada suggests a potential upside of 6.04% based on the stock's current trading price. Investors and analysts are closely monitoring this adjustment as it signals a shift in market expectations for the real estate investment trust.

Other Analysts Weigh in on Extra Space Storage

Alongside Royal Bank of Canada's update, several other research firms have also reassessed their projections for Extra Space Storage. For instance, Wells Fargo & Company downgraded its price outlook from $170.00 to $165.00, maintaining an "equal weight" rating. Barclays also cut its target for the stock from $192.00 to $184.00 while favorable maintaining an "overweight" rating.

In contrast, StockNews.com changed its stance on Extra Space Storage from a "sell" to a "hold" rating on January 28th. Additionally, Scotiabank upgraded its rating from "sector underperform" to "sector perform" on January 10th, setting a target price of $167.00. Truist Financial is another firm that has shown support for Extra Space Storage by raising its price target slightly from $167.00 to $168.00, while still rating it a "hold."

The consensus rating for Extra Space Storage among analysts currently stands at "Hold," with a collective average price target of around $171.55. This reflects a mix of opinions on the company's stock, with one analyst recommending a sell, seven endorsing a hold, and four issuing buy ratings.

Stock Performance and Financials

On the day of the report, Extra Space Storage shares experienced a minor decline of $0.19, closing at $153.72. Volume for the day was recorded at 427,787 shares traded, falling short of the average volume of 1,255,731 shares. The company's 50-day simple moving average currently stands at $151.94, while the 200-day simple moving average is at $163.62. With a market capitalization of $32.59 billion, Extra Space Storage has a P/E ratio of 40.19 and a PEG ratio of 7.76.

Extra Space Storage has also released its quarterly earnings on February 25th, reporting earnings per share (EPS) of $2.03, significantly exceeding expectations of $1.10. The company generated revenues of $821.90 million during the quarter, surpassing analyst estimates of $707.34 million. The company's financial health is indicated by a return on equity of 5.51% and a net margin of 25.35%. Analysts predict that Extra Space Storage will achieve an EPS of 8.1 for the current fiscal year.

Insider Transactions and Institutional Investements

In other corporate news, CEO Joseph D. Margolis sold 7,500 shares of the company's stock on January 2nd at an average price of $148.01, totaling approximately $1.11 million. After this sale, he holds 16,690 shares valued at around $2.47 million.

Additionally, several institutional investors have adjusted their holdings in Extra Space Storage recently. Norges Bank acquired a substantial stake worth approximately $938.65 million. UBS Asset Management raised its stake significantly by 724.1% during the third quarter, now possessing around 1.98 million shares valued at $357.1 million. Other notable increases include Northern Trust Corporation, which lifted its position by 48.7%, and various hedge funds controlling around 99.11% of the company's stock.

About Extra Space Storage

Extra Space Storage Inc, based in Salt Lake City, Utah, operates as a self-administered and self-managed REIT. As of the end of 2023, it owns or manages approximately 3,714 self-storage facilities across 42 states and Washington, DC, encompassing around 2.6 million units and about 283 million square feet of rentable storage space under various brand names.

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