Traders Buy Large Volume of Call Options on Medical Properties Trust (NYSE:MPT)

Medical Properties Trust, Inc. (NYSE:MPT) was the recipient of unusually large options trading activity on Friday. Investors purchased 58,435 call options on the company. This is an increase of 258% compared to the average volume of 16,316 call options.

Key Stories Impacting Medical Properties Trust

Here are the key news stories impacting Medical Properties Trust this week:

• Positive Sentiment: Unusually heavy options activity provided a speculative bullish signal: traders purchased 58,435 MPT call options, roughly 258% above typical daily volume.
• Positive Sentiment: Some investors remain optimistic that progress on asset sales could improve liquidity and reduce balance-sheet pressure. One analysis characterized the selloff as a potential buying opportunity, although this view is highly speculative. Medical Properties Trust’s Collapse Offers A Golden Buying Opportunity
• Neutral Sentiment: Third-quarter revenue increased 5.3% year over year to $250.14 million, but the improvement was offset by profitability issues, including a negative net margin and negative return on equity. Medical Properties Trust Reports Third-Quarter Results
• Negative Sentiment: MPT reported third-quarter normalized FFO of $0.11 per share, below the $0.13 consensus estimate and down from $0.13 a year earlier. The revenue and FFO misses increased concerns about the REIT’s operating performance. Medical Properties Q3 FFO and Revenues Miss Estimates
• Negative Sentiment: Tenant troubles reportedly prevented payment of September rent, intensifying fears about cash flow, rent collection and the value of MPT’s healthcare properties. Medical Properties Trust Sinks as FFO Misses and Tenant Troubles
• Negative Sentiment: RBC downgraded Medical Properties Trust to Underperform from Sector Perform and slashed its price target to $2 from $4.50, while retaining a speculative-risk designation. The downgrade reinforced bearish sentiment following the earnings report. RBC Downgrades Medical Properties Trust

Institutional Inflows and Outflows

Several hedge funds and other institutional investors have recently made changes to their positions in MPT. Amundi increased its stake in Medical Properties Trust by 1.6% in the 2nd quarter. Amundi now owns 388,683 shares of the company’s stock worth $1,796,000 after acquiring an additional 6,252 shares during the last quarter. Continuum Advisory LLC bought a new position in Medical Properties Trust during the second quarter valued at $31,000. CoreCap Advisors LLC purchased a new stake in Medical Properties Trust in the 3rd quarter worth about $27,000. Nykredit A S purchased a new stake in Medical Properties Trust in the second quarter worth $41,000. Finally, NFSG Corp bought a new position in Medical Properties Trust in the 3rd quarter worth about $34,000. Institutional investors own 71.79% of the company’s stock.

Analyst Upgrades and Downgrades

Several research firms have issued reports on MPT. Royal Bank Of Canada lowered shares of Medical Properties Trust from a “sector perform” rating to an “underperform” rating and cut their price target for the company from $4.50 to $2.00 in a research report on Friday. Weiss Ratings cut Medical Properties Trust from a “sell (d+)” rating to a “sell (d)” rating in a research report on Tuesday, August 18th. Finally, Wells Fargo & Company cut their price target on shares of Medical Properties Trust from $5.00 to $3.80 and set an “underweight” rating on the stock in a report on Tuesday, September 1st. Three equities research analysts have rated the stock with a Sell rating. Based on data from MarketBeat.com, the stock has a consensus rating of “Strong Sell” and a consensus target price of $2.90.

Medical Properties Trust Stock Performance

NYSE MPT traded down $0.18 during trading hours on Friday, hitting $2.26. 47,921,254 shares of the company’s stock traded hands, compared to its average volume of 7,922,579. The company has a current ratio of 3.12, a quick ratio of 3.12 and a debt-to-equity ratio of 2.16. The firm has a market capitalization of $1.35 billion, a P/E ratio of -37.67 and a beta of 1.45. Medical Properties Trust has a 52 week low of $2.06 and a 52 week high of $6.47. The business’s fifty day moving average price is $3.42 and its two-hundred day moving average price is $4.35.

Medical Properties Trust (NYSE:MPT) last announced its earnings results on Thursday, October 29th. The company reported $0.11 EPS for the quarter, missing analysts’ consensus estimates of $0.13 by ($0.02). Medical Properties Trust had a negative return on equity of 0.66% and a negative net margin of 2.96%. The company had revenue of $250.14 million during the quarter. The company’s revenue was up 5.3% compared to the same quarter last year. Equities research analysts predict that Medical Properties Trust will post 0.53 EPS for the current year.

Medical Properties Trust Announces Dividend

The firm also recently declared a quarterly dividend, which was paid on Thursday, October 8th. Shareholders of record on Thursday, September 10th were paid a $0.09 dividend. This represents a $0.36 dividend on an annualized basis and a yield of 15.9%. The ex-dividend date was Thursday, September 10th. Medical Properties Trust’s dividend payout ratio is presently -600.00%.

About Medical Properties Trust

Medical Properties Trust, Inc is a healthcare-focused real estate investment trust (REIT) that owns and invests in healthcare facilities. Its portfolio has historically included hospitals, inpatient rehabilitation facilities, long-term acute-care hospitals, behavioral health facilities and other properties used by healthcare providers.

Founded in 2003 and headquartered in Birmingham, Alabama, the company primarily generates income by leasing properties to healthcare operators under long-term agreements.