Federated Hermes Inc. Trims Stake in AvalonBay Communities, Inc. $AVB

Federated Hermes Inc. cut its stake in shares of AvalonBay Communities, Inc. (NYSE:AVB) by 66.9% during the 3rd quarter, according to its most recent Form 13F filing with the SEC. The institutional investor owned 1,641 shares of the real estate investment trust’s stock after selling 3,320 shares during the period. Federated Hermes Inc.’s holdings in AvalonBay Communities were worth $317,000 at the end of the most recent quarter.

Several other hedge funds have also bought and sold shares of the stock. Mather Group LLC. purchased a new stake in shares of AvalonBay Communities in the third quarter worth $30,000. Clearstead Trust LLC boosted its holdings in AvalonBay Communities by 62.0% in the 2nd quarter. Clearstead Trust LLC now owns 162 shares of the real estate investment trust’s stock worth $33,000 after buying an additional 62 shares during the period. Headlands Technologies LLC purchased a new stake in AvalonBay Communities in the 2nd quarter worth $36,000. Atlantic Union Bankshares Corp bought a new stake in AvalonBay Communities during the second quarter valued at about $59,000. Finally, McIlrath & Eck LLC purchased a new position in shares of AvalonBay Communities in the second quarter valued at about $59,000. Institutional investors own 92.61% of the company’s stock.

Analyst Ratings Changes

Several equities analysts have recently commented on the stock. Mizuho lowered their target price on shares of AvalonBay Communities from $199.00 to $191.00 and set a “neutral” rating on the stock in a report on Monday, November 24th. Wells Fargo & Company dropped their price objective on shares of AvalonBay Communities from $213.00 to $193.00 and set an “overweight” rating for the company in a report on Monday, November 10th. Morgan Stanley cut their price objective on AvalonBay Communities from $225.00 to $222.50 and set an “overweight” rating for the company in a research report on Thursday, November 13th. Barclays boosted their target price on AvalonBay Communities from $216.00 to $217.00 and gave the stock an “overweight” rating in a research report on Tuesday, January 13th. Finally, Piper Sandler cut their price target on AvalonBay Communities from $200.00 to $190.00 and set a “neutral” rating for the company in a report on Monday, November 3rd. Six analysts have rated the stock with a Buy rating and twelve have assigned a Hold rating to the company. According to MarketBeat.com, AvalonBay Communities currently has a consensus rating of “Hold” and a consensus target price of $202.83.

AvalonBay Communities Stock Performance

NYSE AVB opened at $173.68 on Monday. The business’s 50 day moving average price is $179.10 and its 200-day moving average price is $184.64. AvalonBay Communities, Inc. has a fifty-two week low of $166.73 and a fifty-two week high of $230.21. The company has a market cap of $24.59 billion, a P/E ratio of 21.21, a P/E/G ratio of 3.02 and a beta of 0.76. The company has a debt-to-equity ratio of 0.79, a quick ratio of 0.67 and a current ratio of 0.67.

AvalonBay Communities (NYSE:AVB) last issued its quarterly earnings results on Wednesday, February 4th. The real estate investment trust reported $2.85 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $2.84 by $0.01. AvalonBay Communities had a return on equity of 8.78% and a net margin of 34.57%.The company had revenue of $678.85 million during the quarter, compared to the consensus estimate of $766.38 million. During the same period last year, the company earned $2.80 earnings per share. AvalonBay Communities has set its FY 2026 guidance at 11.000-11.500 EPS and its Q1 2026 guidance at 2.730-2.830 EPS. Sell-side analysts predict that AvalonBay Communities, Inc. will post 11.48 earnings per share for the current year.

AvalonBay Communities Increases Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Wednesday, April 15th. Investors of record on Tuesday, March 31st will be paid a $1.78 dividend. This represents a $7.12 annualized dividend and a yield of 4.1%. This is an increase from AvalonBay Communities’s previous quarterly dividend of $1.75. The ex-dividend date of this dividend is Tuesday, March 31st. AvalonBay Communities’s payout ratio is currently 96.48%.

More AvalonBay Communities News

Here are the key news stories impacting AvalonBay Communities this week:

• Positive Sentiment: Quarterly FFO and operating metrics topped estimates: AVB reported core FFO of $2.85/share (vs. $2.84 consensus), same-store NOI and occupancy improved, supporting cash flow and valuation. Zacks: Q4 FFO Tops Estimates
• Positive Sentiment: Operational strength: management highlighted record-low turnover and improved resident retention, which reduces leasing costs and supports margins. Commercial Observer: Turnover Rate Drops
• Positive Sentiment: Dividend increase: AVB raised the quarterly payout to $1.78 (1.7% increase), lifting the yield and supporting income-oriented investor demand. MSN: Dividend Raised
• Neutral Sentiment: Guidance and growth plan: management forecasts modest 1.4% revenue growth for 2026 and is targeting ~$800M in new development starts — signals measured growth but also capital deployment that investors should monitor. MSN: 2026 Forecast & Development
• Neutral Sentiment: Earnings materials and call transcript available for detail — useful for modeling rent, capex and leasing assumptions. Seeking Alpha: Q4 Call Transcript Seeking Alpha: Earnings Presentation
• Negative Sentiment: Analyst action: RBC trimmed its price target from $191 to $187 and holds a “sector perform” rating — reduces near-term upside expectations and may limit enthusiasm from some institutional buyers. Benzinga: RBC Price Target Cut
• Negative Sentiment: Rate/headwind risk: coverage notes higher interest expenses are weighing on results; sustained higher rates would pressure margins and valuations for REITs like AVB. Zacks: Interest Expense Headwind

AvalonBay Communities Company Profile

AvalonBay Communities, Inc (NYSE: AVB) is a publicly traded real estate investment trust (REIT) that owns, develops, redevelops and manages multifamily residential properties. The company focuses on professionally managed apartment communities, offering a range of rental housing options and related resident services. As a REIT, AvalonBay’s core activities center on the acquisition and development of apartment assets and the ongoing operations and leasing of those communities.

AvalonBay’s operating activities include ground-up development, strategic redevelopment of existing properties, property and asset management, and on-site leasing and resident services.