Shares of Ventas, Inc. (NYSE: VTR) have been assigned an average target price of $77.36 by analysts following the company, indicating a general optimism regarding the stock’s future performance. According to Marketbeat.com, the consensus rating among the sixteen brokers covering Ventas is “Moderate Buy,” with eleven analysts recommending a buy, four advising to hold, and one suggesting a strong buy.
In recent weeks, several investment firms have provided updates on their price targets for Ventas. Evercore ISI increased its price objective from $77.00 to $80.00 and rated the stock as “outperform” in a report released on September 15, 2023. Similarly, Argus reaffirmed a “buy” rating with a target price of $75.00 on August 26, 2023. Raymond James Financial also raised its target from $74.00 to $78.00 while maintaining an “outperform” rating on August 22, 2023. UBS Group initiated coverage on Ventas with a “neutral” rating and a target price of $73.00 on September 19, 2023. Lastly, Scotiabank adjusted its price target upward from $74.00 to $80.00 and rated the stock as “sector perform” on November 13, 2023.
Recent Earnings and Dividend Announcement
Ventas reported its quarterly earnings on October 29, 2023, revealing earnings per share (EPS) of $0.88, surpassing analysts’ expectations of $0.87 by a narrow margin. The company’s revenue for the quarter reached $1.49 billion, exceeding the forecast of $1.44 billion. The firm also recorded a return on equity of 2.10% and a net margin of 4.28%, with quarterly revenue increasing by 20.5% compared to the same period last year.
Looking ahead, Ventas has projected its fiscal year 2025 guidance at an EPS range of 3.450 to 3.480. Analysts anticipate that the company will achieve an EPS of 3.4 for the current year.
In addition, Ventas declared a quarterly dividend of $0.48 per share, which was paid on October 16, 2023. The dividend was made available to shareholders on record as of September 30, 2023, with an ex-dividend date also on September 30, 2023. This represents an annualized dividend of $1.92 and a dividend yield of approximately 2.4%, although the current dividend payout ratio stands at a high 369.23%.
Insider Transactions and Institutional Holdings
In other corporate developments, Peter J. Bulgarelli, CEO of Ventas, sold 2,229 shares on November 19, 2023, at an average price of $80.08, totaling around $178,498.32. Following this transaction, Bulgarelli retains 106,488 shares valued at approximately $8,527,559.04, marking a 2.05% decrease in his overall holdings.
Additionally, Debra A. Cafaro, another CEO, sold 41,294 shares on November 17, 2023, for a total of about $3,262,638.94. After this sale, Cafaro owns 1,145,695 shares, valued at roughly $90,521,361.95, which represents a 3.48% decrease in her position. Over the past three months, insiders have sold a total of 698,912 shares worth approximately $51,454,499, with corporate insiders currently holding 0.80% of the stock.
Institutional investors have also been active in the market for Ventas shares. A number of firms have recently acquired or adjusted their positions. For instance, Cloud Capital Management LLC invested approximately $25,000 in the third quarter, while Wiser Advisor Group LLC purchased a stake valued at $27,000. True Wealth Design LLC increased its holdings by 1,557.7% during the same period, bringing its total to 431 shares worth $30,000 after acquiring an additional 405 shares. Overall, institutional investors now own 94.18% of Ventas stock.
As a prominent player in the S&P 500, Ventas focuses on providing sustainable shareholder returns, driven primarily by its senior housing communities that cater to a growing aging population. The firm’s commitment to delivering exceptional environments has positioned it favorably within the real estate investment trust sector.
