Digital Realty Trust (NYSE:DLR) Shares Break Above Two Hundred Day Moving Average on Disappointing Earnings

Digital Realty Trust, Inc. (NYSE:DLR) shares passed above its two hundred day moving average during trading on Thursday following a better than expected earnings announcement. The stock has a two hundred 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.

The real estate investment trust reported $0.48 EPS 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 analysts’ expectations of $1.75 billion. Digital Realty Trust had a net margin of 13.06% and a return on equity of 3.81%. The business’s quarterly revenue was up 20.6% compared to the same quarter last year. During the same quarter in the previous year, the business posted $1.89 earnings per share.

Digital Realty Trust Dividend Announcement

The company also recently announced a quarterly dividend, which was paid on Wednesday, September 30th. Shareholders of record on Tuesday, September 15th were issued a dividend of $1.22 per share. This represents a $4.88 dividend on an annualized basis and a yield of 2.7%. The ex-dividend date of this dividend was Tuesday, September 15th. Digital Realty Trust’s dividend payout ratio (DPR) is currently 204.18%.

Trending Headlines about Digital Realty Trust

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 brokerages have recently weighed in on DLR. Mizuho set a $223.00 price target on Digital Realty Trust in a research report on Monday, August 10th. Rothschild & Co Redburn started coverage on Digital Realty Trust in a research report on Monday, September 21st. They set a “buy” rating and a $227.00 price objective for the company. Sanford C. Bernstein restated an “outperform” rating and set a $229.00 price objective on shares of Digital Realty Trust in a research note on Friday. Citigroup upped their price objective on Digital Realty Trust from $226.00 to $234.00 and gave the stock a “buy” rating in a research note on Friday. Finally, BTIG Research increased their target price on Digital Realty Trust from $215.00 to $220.00 and gave the stock a “buy” rating in a research report on Thursday, September 10th. Two 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 stock. According to MarketBeat.com, the company currently has an average rating of “Moderate Buy” and an average price target of $221.35.

Insider Activity at Digital Realty Trust

In other news, Director Mark Patterson sold 200 shares of Digital Realty Trust 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 sale, the director owned 6,322 shares of the company’s stock, valued at approximately $1,226,215.12. The trade was a 3.07% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is accessible through the SEC website. Insiders own 0.15% of the company’s stock.

Institutional Trading of Digital Realty Trust

Large investors have recently added to or reduced their stakes in the business. Provenance Wealth Advisors LLC raised its stake in Digital Realty Trust by 3,600.0% during the 3rd quarter. Provenance Wealth Advisors LLC now owns 148 shares of the real estate investment trust’s stock valued at $26,000 after purchasing an additional 144 shares during the last quarter. Gables Capital Management Inc. acquired a new stake in Digital Realty Trust in the 2nd quarter worth $29,000. Bell Investment Advisors Inc bought a new position in shares of Digital Realty Trust during the 2nd quarter worth about $31,000. First Community Trust NA bought a new position in shares of Digital Realty Trust during the 3rd quarter worth about $31,000. Finally, Ashurst Perkins Coie Trust Co acquired a new position in shares of Digital Realty Trust during the third quarter valued at about $31,000. 99.71% of the stock is currently owned by institutional investors and hedge funds.

Digital Realty Trust Price Performance

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 stock’s 50-day moving average price is $181.45 and its 200 day moving average price is $182.91. The firm has a market cap of $66.88 billion, a price-to-earnings ratio of 75.42, a price-to-earnings-growth ratio of 3.53 and a beta of 0.99.

About Digital Realty Trust

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.