Easterly Government Properties stock hits 52-week low at $7.88

Easterly Government Properties Inc. (NYSE:DEA) stock has reached a new 52-week low, touching down at $7.88, while offering an attractive 12.88% dividend yield. According to InvestingPro analysis, the stock appears undervalued at current levels. This latest price point marks a significant downturn for the real estate investment trust, which specializes in properties leased to U.S. government agencies. Over the past year, the company has seen its stock value decrease by a notable 29.46%, reflecting investor concerns and a challenging market environment. Despite these challenges, the company maintains a healthy 66.58% gross profit margin and analysts remain optimistic, with price targets ranging from $9.50 to $13.00. The decline to this 52-week low underscores the pressures faced by the firm amidst a shifting real estate landscape and broader economic headwinds. Discover more insights with InvestingPro, which offers 8 additional key tips for this stock.

In other recent news, Easterly Government Properties reported its fourth-quarter 2024 earnings, revealing a net income per share of $0.05, which fell short of the forecasted $0.06. The company's revenue also missed expectations, coming in at $74.14 million compared to the anticipated $77.44 million. Despite these misses, Easterly reaffirmed its earnings outlook for 2025, projecting core funds from operations (FFO) per share between $1.18 and $1.21. In a strategic move, the company announced a 32% reduction in its quarterly dividend and approved a 1-for-2.5 reverse stock split. Compass Point responded to these developments by downgrading Easterly's stock rating from Buy to Neutral, citing concerns over the company's management decisions. Meanwhile, Jefferies initiated coverage of Easterly with a Buy rating, setting a price target of $13.00, expressing confidence in the company's growth potential. Additionally, Easterly's management emphasized their focus on mission-critical government properties and announced plans for significant acquisitions in 2025.

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