Mizuho downgrades Avalonbay to Neutral, lowers price target to $199.

Mizuho downgrades Avalonbay to Neutral, lowers price target to $199.

In a significant move, Mizuho Financial Group has downgraded its rating for AvalonBay Communities (NYSE: AVB) to "Neutral" and lowered its price target to $199. The brokerage's decision reflects a change in sentiment regarding the real estate investment trust (REIT) following recent earnings reports and market performance.

Mizuho's downgrade comes on the heels of mixed analyst ratings and price targets for AvalonBay. While some analysts, such as Barclays and Morgan Stanley, have raised their price targets, others like Royal Bank of Canada and JPMorgan Chase have decreased them. The consensus rating remains "Hold," with an average price target of $228.50 [1].

AvalonBay reported an earnings per share (EPS) of $2.82 for the last quarter, which exceeded analyst expectations despite revenues falling short of consensus estimates. The company's net margin stood at 38.91%, and its return on equity was 9.70%. However, the revenue of $689.90 million was below the consensus estimate of $759.08 million [1].

Institutional investors have shown significant interest in AvalonBay, with several funds increasing their stakes in the company. For instance, National Bank of Canada FI raised its stake by 52.4% during the first quarter, owning approximately 0.09% of the company's stock [2].

The insider activity at AvalonBay has also been notable. The company's CFO, Kevin P. O'shea, sold 6,000 shares, and EVP Edward M. Schulman sold 5,945 shares in recent transactions. These sales represent a decrease in their ownership of the stock [1].

Mizuho's downgrade and lower price target suggest a cautious stance on AvalonBay's future performance. Investors should closely monitor the company's earnings reports and analyst ratings to make informed decisions about their investments.

References:
[1] https://www.marketbeat.com/instant-alerts/avalonbay-communities-nyseavb-price-target-lowered-to-21200-at-evercore-isi-2025-08-12/
[2] https://www.marketbeat.com/instant-alerts/filing-avalonbay-communities-inc-nyseavb-shares-bought-by-national-bank-of-canada-fi-2025-08-11/