UDR, Inc.: A Closer Look at Recent Performance and Future Potential
UDR, Inc. (UDR), located in Highlands Ranch, Colorado, is a prominent player in the multifamily real estate investment trust (REIT) sector. The company actively engages in the acquisition, sale, development, and redevelopment of real estate communities across key U.S. markets. With a market capitalization of $14.3 billion, UDR is strategically expanding its reach in areas characterized by low housing affordability and strong demand for multifamily housing.
Considered a “large-cap stock,” companies with market caps over $10 billion fall into this category, and UDR certainly meets that criterion. For more than 51 years, UDR has established itself as a leading REIT, focusing on providing enduring value to shareholders, exceptional service to residents, and a high-quality work experience for employees.
Market Performance and Recent Trends
Currently, UDR is trading at 8.6% below its 52-week peak of $47.55, achieved on September 16. Additionally, the company’s shares have declined by 6.2% over the past three months, which contrasts with the S&P 500 Index’s ($SPX) 4.5% gains in the same period.
Examining a longer time frame, shares of UDR have increased by 6.7% over the last six months, trailing behind the SPX’s gain of 9.3%. Over the past 52 weeks, UDR’s total increase stands at 15.4%, while the S&P 500 has seen a return of nearly 25.7%.
In terms of technical indicators, UDR’s stock has been trading below its 50-day moving average since mid-December. However, it has managed to stay above its 200-day moving average since late April.
Q3 Earnings and Market Reactions
Despite posting stronger-than-expected revenues of $420.2 million and funds from operations (FFO) of $0.62 per share, UDR’s shares dropped by 3.1% following its Q3 earnings report. The FFO came in line with analysts’ expectations. Notably, the company also upgraded its full-year 2024 FFO guidance to a range of $2.47 to $2.49 per share. However, a 1.6% annual decrease in FFO and a decline in new lease rate growth may have overshadowed these positive results and negatively impacted the stock price.
Compared to competitors, UDR has not performed as well as Equity Residential (EQR), which experienced a nearly 16.9% increase over the past year. Nonetheless, UDR has outperformed EQR over the last six months, where EQR’s rise was limited to 4.6%.
Analyst Outlook and Future Considerations
Despite the recent struggles for UDR, analysts maintain a cautiously optimistic outlook. The consensus rating stands at “Moderate Buy” from 24 analysts, with a mean price target of $47.07, suggesting an 8.3% potential upside from current levels.
On the date of publication,
Neharika Jain
did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article are solely for informational purposes. For more information please view the Barchart Disclosure Policy
here.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
