Equity Residential (EQR) Monthly Stock Report - December 12, 2025

Company Overview

Equity Residential (NYSE: EQR), founded in 1969 and headquartered in Chicago, Illinois, is one of the leading Real Estate Investment Trusts (REITs) in the United States, specializing in the residential rental sector. With a robust portfolio that includes 318 rental properties and 86,320 apartment units, Equity Residential operates primarily in dynamic coastal markets. Key target regions also include high-growth areas such as Atlanta, Austin, Dallas/Ft. Worth, and Denver.

As part of the S&P 500, the company is positioned as a significant player within the Residential REIT industry, focusing on acquiring and managing residential properties to generate consistent income. Equity Residential's well-diversified portfolio showcases its strategic emphasis on fostering thriving communities, thus presenting itself as a strong investment opportunity. Given the company's ongoing adaptation amidst market challenges and strong fundamentals, the recommendation for shareholders remains a buy, with optimistic expectations for future growth. The stock's target high price is projected at $80.00, indicating significant upside potential from current levels.

52-Week Price Performance Analysis

52-Week Price Performance Chart

The analysis of Equity Residential's stock price over the past year reveals a challenging environment, characterized by a predominantly bearish trend. The stock has experienced a decline of approximately 13.89%, moving from highs near $75.86 in early 2025, to its current trading price of $60.63.

Key Price Levels

• Resistance Level: $70.00 - A psychological barrier that the stock has struggled to break multiple times.
• Support Level: $60.63 - The current price holds slightly above this key support, acting as a significant buying zone.

Momentum Analysis

The fifty-day moving average stands at $61.14, indicating that the stock is trading just above this level. The consistent downward trajectory indicated by the moving average, compounded by lower highs in recent months, suggests a lack of upward momentum. Investors may interpret this as caution in buying due to the absence of bullish indicators.

The price action dynamics in recent weeks, with minor recoveries quickly following by pullbacks, indicate ongoing selling pressure. Without a decisive breakout above the $70.00 resistance or a solid hold above the support level, the stock is likely to remain range-bound in the short term.

Financial Performance and Metrics

Equity Residential's financial strength is evidenced by substantial operating metrics. As of Q3 2025, the company reported:

• Total Revenue: $3.08 billion - A testament to its ability to attract and retain residents.
• EBITDA: Approximately $1.88 billion - This reflects strong operational profitability, a crucial indicator of its financial health.
• Outstanding Shares: 380,474,721, with a short interest of 6,188,864 shares, representing about 0.0221% of the float. A low percentage of shorted shares suggests that investor sentiment may be leaning positively towards the stock.

In the latest quarter, the company saw its same-store revenue guidance revised slightly lower to 2.75%, with occupancy rates maintaining robust levels in the mid-96% range and new resident income growth recorded at 6.2% year-over-year. These numbers highlight Equity Residential's competitive position and resilience in the multifamily housing market.

Recent News and Developments

Recent events have influenced investor sentiment surrounding Equity Residential. Notably:

• On December 8, 2025, Arrowstreet Capital Limited Partnership increased its holdings in the stock, reflecting institutional interest and confidence in the company's potential.
• During the Q3 2025 earnings call, the company reported a record third-quarter resident retention rate and initiated a substantial stock repurchase program amounting to $100 million, indicating management's belief in the stock's inherent value.

However, fluctuations in analyst sentiment have contributed to market volatility:

• On November 3, 2025, Wall Street Zen upgraded EQR from a "sell" to a "hold."
• Conversely, BNP Paribas downgraded the stock on September 29, 2025, from "outperform" to "hold."

These mixed reviews contribute to the current hold consensus from analysts.

Market Sentiment and Analyst Recommendations

The prevailing analyst consensus for Equity Residential remains a "hold," supported by a mean price target of $70.02. This indicates a potential upside of approximately 15.4% from the current trading price of $60.63.

Analyst Pricing Insights

• Target High Price: $80.00 - Illustrative of bullish expectations and substantial future potential.
• Target Low Price: $61.00 - Offering a conservative view that suggests caution.

The mean recommendation score of 2.31 (on a scale of 1 to 5, with 1 being "strong buy" and 5 representing "strong sell") further underscores the optimism surrounding the stock, albeit tempered by recent performance challenges.

Conclusion

In summary, Equity Residential presents a compelling investment case within a dynamic sector. Despite recent price volatility and mixed analyst sentiment, the company's robust financial metrics, strategic positioning, and strong occupancy rates underpin its potential. With the current stock trading at $60.63, investors may find it an opportune moment to consider the potential upside to the projected target price of $70.02 and above.

Investors should remain vigilant of price movements around key support and resistance levels while monitoring for significant market catalysts that could influence sentiment and drive price recovery in the near term.