Digital Realty Trust (NYSE:DLR) Stock Crosses Above Two Hundred Day Moving Average Following Weak Earnings

Digital Realty Trust, Inc. (NYSE:DLR) shares passed above its 200-day moving average during trading on Thursday following a better than expected earnings announcement. The stock has a 200-day moving average of $182.80 and traded as high as $186.06. Digital Realty Trust shares last traded at $183.2130, with a volume of 2,537,757 shares changing hands.

The real estate investment trust reported $0.48 earnings per share for the quarter, missing the consensus estimate of $0.52 by ($0.04). The company had revenue of $1.90 billion for the quarter, compared to analyst estimates of $1.75 billion. Digital Realty Trust had a return on equity of 3.81% and a net margin of 13.06%. The firm’s revenue for the quarter was up 20.6% on a year-over-year basis. During the same quarter last year, the company earned $1.89 EPS.

Digital Realty Trust Announces Dividend

The firm also recently disclosed a quarterly dividend, which was paid on Wednesday, September 30th. Investors of record on Tuesday, September 15th were paid a dividend of $1.22 per share. This represents a $4.88 annualized dividend and a yield of 2.7%. The ex-dividend date of this dividend was Tuesday, September 15th. Digital Realty Trust’s dividend payout ratio is currently 204.18%.

Digital Realty Trust News Summary

Here are the key news stories impacting Digital Realty Trust this week:

• Positive Sentiment: Third-quarter FFO and revenue exceeded expectations. Core FFO was $2.10 per share, beating estimates by $0.10, while revenue reached approximately $1.90 billion—$140 million above consensus—and increased 20.6% year over year. Digital Realty Trust FFO and revenue results
• Positive Sentiment: Improving data-center fundamentals supported the outlook. Record bookings, higher occupancy and stronger rental rates drove double-digit core FFO growth. Management raised its 2026 core FFO outlook to $8.30-$8.35 per share, broadly in line with the FactSet estimate of $8.34. DLR Q3 FFO and revenue outlook
• Positive Sentiment: Analysts raised their price targets and maintained bullish ratings. Wells Fargo lifted its target to $225 from $220, Cantor Fitzgerald raised its target to $223 from $221, and Citigroup increased its target to $234 from $226. Wells Fargo and Cantor Fitzgerald both retained “overweight” ratings. Wells Fargo Digital Realty Trust rating
• Neutral Sentiment: Investor focus remains on execution and valuation. The raised outlook was close to existing expectations, limiting the potential for a major positive surprise. DLR also trades at a high earnings multiple, making the stock sensitive to interest rates and any slowdown in data-center demand.
• Negative Sentiment: Reported EPS missed the consensus estimate. Digital Realty posted quarterly EPS of $0.48 versus expectations of $0.52, despite the revenue beat. The earnings shortfall may have prompted profit-taking and helped offset the stronger FFO and operating metrics. Digital Realty Trust quarterly earnings
• Negative Sentiment: Put-option activity increased. Traders purchased 3,148 put options, approximately 87% above typical volume, signaling increased near-term hedging or bearish speculation.

Analysts Set New Price Targets

A number of equities research analysts have commented on DLR shares. Royal Bank Of Canada lifted their target price on Digital Realty Trust from $207.00 to $227.00 and gave the company an “outperform” rating in a research report on Monday, July 27th. Citigroup lifted their price objective on shares of Digital Realty Trust from $226.00 to $234.00 and gave the company a “buy” rating in a report on Friday. HSBC cut their price target on Digital Realty Trust from $240.00 to $235.00 and set a “buy” rating on the stock in a report on Wednesday, September 23rd. Evercore restated an “outperform” rating and issued a $240.00 price objective on shares of Digital Realty Trust in a report on Tuesday, August 18th. Finally, The Goldman Sachs Group reaffirmed a “buy” rating and set a $237.00 price objective on shares of Digital Realty Trust in a research report on Friday. Two equities research analysts have rated the stock with a Strong Buy rating, twenty-five have given a Buy rating and six have given a Hold rating to the company’s stock. According to data from MarketBeat, the company currently has a consensus rating of “Moderate Buy” and an average price target of $221.35.

Insider Buying and Selling at Digital Realty Trust

In related news, Director Mark Patterson sold 200 shares of the business’s stock in a transaction that occurred on Thursday, August 27th. The stock was sold at an average price of $193.96, for a total transaction of $38,792.00. Following the completion of the sale, the director owned 6,322 shares in the company, valued at $1,226,215.12. The trade was a 3.07% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through the SEC website. Company insiders own 0.15% of the company’s stock.

Hedge Funds Weigh In On Digital Realty Trust

Several hedge funds have recently added to or reduced their stakes in the stock. Pathway Financial Advisers LLC grew its holdings in shares of Digital Realty Trust by 3.0% during the 3rd quarter. Pathway Financial Advisers LLC now owns 13,387 shares of the real estate investment trust’s stock worth $2,350,000 after purchasing an additional 394 shares during the period. Kestra Private Wealth Services LLC raised its holdings in Digital Realty Trust by 4.7% in the third quarter. Kestra Private Wealth Services LLC now owns 21,273 shares of the real estate investment trust’s stock valued at $3,734,000 after buying an additional 964 shares during the period. Chicago Partners Investment Group LLC raised its holdings in Digital Realty Trust by 3.8% in the third quarter. Chicago Partners Investment Group LLC now owns 2,432 shares of the real estate investment trust’s stock valued at $419,000 after buying an additional 90 shares during the period. Covestor Ltd lifted its position in Digital Realty Trust by 192.9% during the third quarter. Covestor Ltd now owns 287 shares of the real estate investment trust’s stock valued at $51,000 after buying an additional 189 shares in the last quarter. Finally, Verity Asset Management Inc. lifted its position in Digital Realty Trust by 2.0% during the third quarter. Verity Asset Management Inc. now owns 3,345 shares of the real estate investment trust’s stock valued at $587,000 after buying an additional 64 shares in the last quarter. 99.71% of the stock is currently owned by hedge funds and other institutional investors.

Digital Realty Trust Trading Down 1.4%

The company has a quick ratio of 1.06, a current ratio of 1.06 and a debt-to-equity ratio of 0.68. The firm’s 50 day simple moving average is $181.45 and its 200-day simple moving average is $182.91. The company has a market capitalization of $66.88 billion, a PE ratio of 75.42, a P/E/G ratio of 3.53 and a beta of 0.99.

Digital Realty Trust Company Profile

Digital Realty Trust, Inc is a real estate investment trust that owns, operates and develops data center facilities for businesses, cloud service providers, information technology companies and telecommunications organizations. The company provides the physical infrastructure needed to support data storage, networking, cloud computing and other digital operations.

Its services include data center colocation, interconnection and private connectivity solutions. Digital Realty also offers access to cloud and network providers through its PlatformDIGITAL platform, which is designed to help customers deploy, connect and manage their digital infrastructure across multiple locations.

Founded in 2001, Digital Realty serves customers through a global portfolio of data centers and related facilities across North America, Europe, Asia-Pacific and Latin America.