Equity Residential Q4 Earnings Estimates Questioned: Are Analysts Overly Optimistic?

Equity Residential's Q4 Earnings Estimates: Are Analysts Too Optimistic?

Equity Residential (EQR) has seen its Q4 2025 earnings per share (EPS) estimates downgraded by Zacks Research, raising concerns about the real estate investment trust's (REIT) financial outlook. Zacks analyst R. Department now projects EPS of $0.99, a downward revision from the previous estimate of $1.01. This has raised questions about whether analysts' consensus estimate of $3.81 for the full year remains realistic.

Equity Residential: Buy, Sell, or Hold?

Analysts have expressed mixed opinions on Equity Residential's stock, with varying price targets and ratings. Royal Bank of Canada raised its price target to $66.00, maintaining an "outperform" rating. Deutsche Bank initiated coverage with a "hold" rating and a $64.00 price objective. Barclays lowered its price target to $67.00 and assigned an "equal weight" rating. Raymond James upgraded the stock from "underperform" to "market perform." Morgan Stanley raised its price objective to $64.00 and reiterated an "equal weight" rating. Overall, 11 analysts have issued "hold" ratings, while four have recommended buying the stock, resulting in a consensus rating of "hold" and a price target of $65.68.

Equity Residential's Stock Performance: A Mixed Bag

EQR's stock price has fluctuated in recent trading sessions. On Monday, shares dipped $0.41 to $61.76, despite a trading volume of 132,576, well below its average volume of 2,129,129. The stock's 52-week range extends from a low of $52.57 to a high of $69.45, with a current market capitalization of $23.44 billion. Its financial ratios include a P/E ratio of 28.26, a price-to-earnings-growth ratio of 3.65, and a beta of 0.84. The company's 50-day and 200-day moving averages stand at $60.67 and $59.53, respectively.

Equity Residential's Q4 Results: Missing the Mark

Equity Residential's fourth-quarter earnings report, released on January 30th, fell short of analysts' expectations. The REIT reported EPS of $0.82, a shortfall of $0.18 from the consensus estimate of $1.00. Its return on equity and net margin were 7.43% and 29.07%, respectively. Revenue reached $727.50 million, slightly above the $725.07 million anticipated by analysts. Year-over-year, revenue increased by 4.0%.

Institutional Investors: Betting on Equity Residential

Institutional investors have been actively trading Equity Residential shares. Financial Gravity Asset Management significantly increased its stake in the REIT by 593.9% during the third quarter. Other institutional investors, such as Bruce G. Allen Investments, Money Concepts Capital, Allworth Financial, and Voisard Asset Management, have also acquired positions in the company. Notably, institutional investors hold a substantial 92.68% of Equity Residential's stock.

Insider Activity: Selling Spree at Equity Residential

In recent months, several insiders at Equity Residential have sold their shares. COO Michael L. Manelis sold 1,639 shares at an average price of $59.43, netting $97,405.77. CFO Robert Garechana sold 876 shares at an average price of $57.80, totaling $50,632.80. Over the past quarter, insiders have sold 3,280 shares of company stock, valued at $192,335. Corporate insiders currently own approximately 1.69% of Equity Residential's outstanding shares.

Equity Residential's Dividend: A Boost in Income

Equity Residential recently announced a quarterly dividend of $0.675 per share, payable on April 12th to shareholders of record as of March 25th. This represents an annualized dividend of $2.70 and a dividend yield of 4.37%. The ex-dividend date is March 22nd. This dividend increase marks an improvement from the previous quarterly dividend of $0.66. Equity Residential's dividend payout ratio stands at 122.73%.

About Equity Residential: A Focus on Urban Living

Equity Residential is a leading REIT dedicated to creating vibrant communities in major metropolitan areas. As a member of the S&P 500, the company focuses on acquiring, developing, and managing residential properties in high-demand cities that attract affluent renters. Equity Residential's portfolio includes 305 properties with 80,683 apartment units, with a presence in Boston, New York, Washington, DC, Seattle, San Francisco, Southern California, Denver, Atlanta, and Dallas/Ft. Worth.