Based in Highlands Ranch, Colorado, UDR, Inc. (UDR) is a leading multifamily real estate investment trust that buys, sells, develops, and redevelops attractive real estate communities in targeted U.S. markets. Valued at a market cap of $14.3 billion, the company is expanding its presence in markets with low housing affordability and favorable demand/supply conditions for multifamily housing as well as job environments.
Companies valued at over $10 billion are typically classified as “large-cap stocks,” and UDR fits the label perfectly with its market cap exceeding this threshold. As a leading REIT for over 51 years, the company is known for delivering long-term value to shareholders, the best standard of service to Residents, and the highest quality experience for Associates.
UDR is currently trading 8.6% below its 52-week high of $47.55, reached on Sep. 16. Moreover, shares of this REIT have declined 6.2% over the past three months, underperforming the broader S&P 500 Index’s ($SPX) 4.5% gains during the same time frame.
Moreover, over the past six months, shares of UDR are up 6.7%, lagging behind SPX’s 9.3% gains over the same time frame. Over the past 52 weeks, UDR has gained 15.4%, falling behind SPX’s nearly 25.7% returns.
To confirm its recent bearish trend, UDR has been trading below its 50-day moving average since mid-December. However, it has remained above its 200-day moving average since late April.
Shares of UDR plunged 3.1% after its Q3 earnings release despite delivering better-than-expected revenues of $420.2 million and FFO of $0.62 per share, which came in line with the consensus estimates. The company also raised its full-year 2024 FFOA per share guidance in the range of $2.47 to $2.49. However, a 1.6% annual decrease in FFO and a decline in effective new lease rate growth might have overshadowed the positives and led to its downward price movement.
UDR has lagged behind its rival, Equity Residential’s (EQR) nearly 16.9% gain over the past 52 weeks but has outpaced EQR’s 4.6% rise over the past six months.
Despite UDR’s recent underperformance, analysts remain moderately optimistic about its prospects. The stock has a consensus rating of “Moderate Buy” from the 24 analysts covering it, and the mean price target of $47.07 suggests a modest 8.3% premium to its current levels.
