Stock of the Day

Digital Realty Trust (DLR)

$179.45

+$2.34 (+1.3%)

Market Cap: $60.44B

About Digital Realty Trust

Digital Realty Trust, Inc. operates as a real estate investment trust, which engages in the provision of data center, colocation and interconnection solutions. It serves the following industries: artificial intelligence (AI), networks, cloud, digital media, mobile, financial services, healthcare, and gaming.

The company was founded on March 9, 2004, and is headquartered in Dallas, TX.

Digital Realty Trust Bull Case

Here are some ways that investors could benefit from investing in Digital Realty Trust, Inc.:

• The company reported earnings per share of $1.77 for the latest quarter, exceeding expectations, which indicates strong financial performance and potential for growth.
• Digital Realty Trust, Inc. has shown a revenue increase of 5.7% compared to the same quarter last year, suggesting a positive trend in business operations.
• The current stock price is around $171.48, which may present a buying opportunity for investors looking to enter at a favorable price point.
• Analysts have a consensus target price of approximately $187.16, indicating potential upside for investors based on market expectations.
• The company has a history of paying dividends, with a recent quarterly dividend of $1.22, which can provide a steady income stream for investors.

Digital Realty Trust Bear Case

Investors should be bearish about investing in Digital Realty Trust, Inc. for these reasons:

• The company's payout ratio is currently very high at 456.07%, which may raise concerns about the sustainability of its dividend payments in the long term.
• Insider ownership is relatively low, with only 0.13% of the stock held by insiders, which may indicate a lack of confidence from those closest to the company.
• Recent insider selling activity, including a director selling shares, could signal potential concerns about the company's future performance.
• Some analysts have issued lower price targets, with Citigroup reducing their target from $188.00 to $174.00, which may reflect cautious sentiment in the market.
• The stock has experienced fluctuations, with a 52-week low of $129.95 and a high of $198.00, indicating volatility that could be a risk for investors.

Recent News

• Guggenheim Assigns “Neutral” to Digital Realty (DLR) on Data Center Leadership (msn.com)