Diversified Healthcare Trust (NASDAQ:DHC) Shares Gap Down Following Weak Earnings

Diversified Healthcare Trust (NASDAQ:DHC) gapped down prior to trading on Tuesday following a weaker than expected earnings announcement. The stock had previously closed at $3.52, but opened at $3.33. Diversified Healthcare Trust shares last traded at $2.96, with a volume of 258,748 shares.

The real estate investment trust reported ($0.41) earnings per share (EPS) for the quarter, missing the consensus estimate of $0.05 by ($0.46). The business had revenue of $373.64 million for the quarter, compared to analyst estimates of $376.80 million. Diversified Healthcare Trust had a negative return on equity of 17.17% and a negative net margin of 26.09%. During the same period in the prior year, the company posted $0.03 EPS.

Diversified Healthcare Trust Announces Dividend

The firm also recently declared a quarterly dividend, which will be paid on Thursday, November 14th. Shareholders of record on Monday, October 28th will be given a $0.01 dividend. The ex-dividend date is Monday, October 28th. This represents a $0.04 annualized dividend and a yield of 1.39%. Diversified Healthcare Trust’s dividend payout ratio is presently -2.48%.

Wall Street Analysts Forecast Growth

Several analysts have recently issued reports on DHC shares. StockNews.com cut Diversified Healthcare Trust from a “hold” rating to a “sell” rating in a research note on Saturday, August 31st. B. Riley lifted their price objective on Diversified Healthcare Trust from $5.00 to $6.00 and gave the company a “buy” rating in a research note on Monday, August 5th. Royal Bank of Canada upped their target price on shares of Diversified Healthcare Trust from $2.00 to $3.00 and gave the stock an “underperform” rating in a research note on Monday, October 14th. Finally, JMP Securities reiterated a “market perform” rating on shares of Diversified Healthcare Trust in a research note on Wednesday, August 21st.

Institutional Inflows and Outflows

A number of hedge funds have recently made changes to their positions in the business. Allspring Global Investments Holdings LLC boosted its holdings in shares of Diversified Healthcare Trust by 99.5% in the 1st quarter. Allspring Global Investments Holdings LLC now owns 15,300 shares of the real estate investment trust’s stock valued at $38,000 after buying an additional 7,629 shares in the last quarter. Atomi Financial Group Inc. acquired a new position in Diversified Healthcare Trust in the first quarter valued at $46,000. New England Private Wealth Advisors LLC purchased a new position in shares of Diversified Healthcare Trust during the second quarter worth about $62,000. Creative Planning increased its position in shares of Diversified Healthcare Trust by 14.1% during the third quarter. Creative Planning now owns 22,401 shares of the real estate investment trust’s stock worth $94,000 after purchasing an additional 2,767 shares in the last quarter. Finally, Metis Global Partners LLC lifted its holdings in shares of Diversified Healthcare Trust by 38.8% in the 3rd quarter. Metis Global Partners LLC now owns 23,610 shares of the real estate investment trust’s stock valued at $99,000 after purchasing an additional 6,603 shares during the last quarter. Hedge funds and other institutional investors own 75.98% of the company’s stock.

Diversified Healthcare Trust Trading Up 1.6 %

The business has a 50-day moving average of $3.59 and a 200-day moving average of $3.13. The stock has a market capitalization of $691.64 million, a price-to-earnings ratio of -1.79 and a beta of 2.23. The company has a debt-to-equity ratio of 1.36, a quick ratio of 11.63 and a current ratio of 11.63.

About Diversified Healthcare Trust

DHC is a real estate investment trust, or REIT, focused on owning high-quality healthcare properties located throughout the United States. DHC seeks diversification across the health services spectrum by care delivery and practice type, by scientific research disciplines and by property type and location.