Analysts Call Top On Outperforming REIT

UDR doesn't see much action from options traders but speculators may want to take notice

UDR, Inc. (NYSE:UDR) is a real estate investment trust (REIT) specializing in luxury apartments, and its stock is up 30% in the past year. However, brokerage firm RBC set a price target of $45 on Friday, and though this is higher than its previous target of $42, it offers no upside for UDR shares, which were last seen trading at $44.73.

Meanwhile, multiple online sources are suggesting that Goldman Sachs just downgraded the equity to "sell" from "neutral." Most other analysts have a "hold" on UDR, and the average 12-month price target is $44.47.

For sure, the $45 level has been acting as a technical ceiling in recent weeks, while the 20-day moving average is trying to act as support. If the shares breach this trendline, traders should then turn their attention to the $40-$42 region, home of the contrarian 80-day and widely followed 200-day moving averages. Both these trendlines have acted as support in the past year.

As one might expect, UDR doesn't see much activity in the options pits, but there is still some interesting data to point out, nonetheless. For example, the security's 30-day historical volatility rests at just 8.8%, ranking just 1 percentage point from an annual low. What's more, the Schaeffer's Volatility Index (SVI) of 13% is just 5 percentage points from a 12-month bottom, suggesting it could be a good time to pick up short-term options with volatility expectations lowered.