Digital Realty Trusts 1.4 Drop and 459th Turnover Rank Highlight Analyst Divide as Dividends and FFO Outperform

On August 14, 2025, Digital Realty Trust (DLR) closed at $166.00, down 1.40% with a trading volume of $220 million, ranking 459th in daily equity turnover. The decline came amid mixed analyst sentiment and sector-specific challenges in regional AI infrastructure demand. A recent Insider Monkey report highlighted growing analyst support for the stock, citing strategic positioning in data center expansion despite localized market pressures.

DLR announced a quarterly cash dividend for common and preferred shares, maintaining its yield of 2.85%. Institutional ownership remains robust at 99.71%, reflecting confidence in the REIT’s long-term asset base. However, the P/E ratio of 160.13 remains elevated compared to sector averages, signaling potential valuation risks. Short interest has declined 1.84% month-over-month, indicating improving investor sentiment amid recent volatility.

Backtesting a strategy of holding top-volume stocks for one day from 2022 to 2025 yielded a total profit of $10,720. While DLR’s performance lagged broader market benchmarks, its core FFO and recurring revenue growth in Q2 2025 outperformed estimates, suggesting underlying operational resilience. Analysts remain divided, with 16 buy ratings offset by 5 holds and 1 sell, as sector dynamics and capital allocation decisions continue to shape near-term momentum.