San Mateo, California-based Essex Property Trust, Inc. (ESS) is a prominent real estate investment trust (REIT) specializing in multifamily residential properties. Valued at a market cap of $18.3 billion, Essex Property Trust owns, manages, and develops high-quality apartment communities in West Coast markets.
Companies valued at $10 billion or more are classified as "large-cap" stocks, and Essex Property Trust fits right into this category, reflecting its significant scale, stability, and leadership within the multifamily residential real estate sector.
ESS shares have retreated 10.5% from their 52-week high of $317.73, which they hit on Sep. 17. However, the stock has declined 8.2% over the past three months, lagging behind the S&P 500 Index’s ($SPX) 4.5% returns over the same time frame.
In the longer term, ESS has surged 2.2% over the past six months, and the shares have gained 16.4% over the past 52 weeks. In comparison, SPX has surged 9.3% and 25.7% over the same time periods.
While ESS has been trading above the 200-day moving average since late February, it has been trading below its 50-day moving average since mid-December.
On Dec. 17, shares of Essex Property dropped more than 1% after JPMorgan Chase & Co. (JPM) downgraded the stock from “Neutral” to “Underweight.”
Moreover, on Oct. 29, the company posted its Q3 earnings report, and its shares dropped more than 5% in the next three trading sessions. Its FFO of $3.91 per share was well above the consensus estimate. The company posted revenue of $450.7 million in the period, also exceeding Street forecasts
In the competitive landscape of residential REITs, top rival AvalonBay Communities, Inc. (AVB) has outperformed ESS with an 18.4% gain over the past year.
Analysts are cautious about ESS’ prospects. The stock has a consensus rating of "Hold" from 27 analysts in coverage. The stock has a mean price target of $307.65, which indicates a potential upswing of 8.2% from the prevailing market prices.
