Diversified Healthcare Trust (NASDAQ:DHC) Shares Gap Down – Should You Sell?

Diversified Healthcare Trust (NASDAQ:DHC)’s stock price gapped down before the market opened on Monday . The stock had previously closed at $8.38, but opened at $8.00. Diversified Healthcare Trust shares last traded at $8.40, with a volume of 85,963 shares.

Analyst Upgrades and Downgrades

Several equities research analysts have recently commented on DHC shares. Freedom Capital raised Diversified Healthcare Trust to a “strong-buy” rating in a report on Thursday, April 30th. B. Riley Financial lifted their price objective on shares of Diversified Healthcare Trust from $8.50 to $11.00 and gave the company a “buy” rating in a research report on Tuesday, June 9th. Weiss Ratings restated a “sell (d-)” rating on shares of Diversified Healthcare Trust in a research note on Friday, July 17th. Maxim Group boosted their price target on Diversified Healthcare Trust from $10.00 to $10.50 and gave the stock a “buy” rating in a research report on Wednesday, June 3rd. Finally, Royal Bank Of Canada boosted their target price on Diversified Healthcare Trust from $6.00 to $8.00 and gave the stock a “sector perform” rating in a report on Thursday, June 18th. One equities research analyst has rated the stock with a Strong Buy rating, two have assigned a Buy rating, two have issued a Hold rating and one has given a Sell rating to the company. According to data from MarketBeat, Diversified Healthcare Trust has an average rating of “Moderate Buy” and a consensus price target of $9.83.

Diversified Healthcare Trust Price Performance

The company has a current ratio of 4.66, a quick ratio of 4.67 and a debt-to-equity ratio of 1.52. The company has a 50 day moving average of $8.96 and a 200-day moving average of $7.91. The firm has a market capitalization of $1.93 billion, a P/E ratio of -7.19 and a beta of 2.30.

Diversified Healthcare Trust (NASDAQ:DHC) last posted its earnings results on Monday, August 3rd. The real estate investment trust reported ($0.16) earnings per share for the quarter, missing analysts’ consensus estimates of ($0.15) by ($0.01). Diversified Healthcare Trust had a negative return on equity of 16.22% and a negative net margin of 17.73%.The firm had revenue of $365.39 million for the quarter, compared to analyst estimates of $370.75 million. On average, sell-side analysts predict that Diversified Healthcare Trust will post 0.6 EPS for the current year.

Diversified Healthcare Trust Announces Dividend

The firm also recently disclosed a quarterly dividend, which was paid on Thursday, August 13th. Shareholders of record on Monday, July 20th were issued a $0.01 dividend. The ex-dividend date of this dividend was Monday, July 20th. This represents a $0.04 dividend on an annualized basis and a yield of 0.5%. Diversified Healthcare Trust’s payout ratio is currently -3.60%.

Institutional Inflows and Outflows

Institutional investors and hedge funds have recently made changes to their positions in the business. Public Employees Retirement System of Ohio bought a new stake in shares of Diversified Healthcare Trust in the second quarter valued at approximately $2,398,000. Bank of New York Mellon Corp acquired a new position in Diversified Healthcare Trust in the 2nd quarter valued at $22,101,000. Militia Capital Management LLC bought a new stake in shares of Diversified Healthcare Trust during the 1st quarter valued at $1,422,000. Western Wealth Management LLC acquired a new stake in shares of Diversified Healthcare Trust during the 1st quarter worth $38,000. Finally, Bank of America Corp DE increased its position in shares of Diversified Healthcare Trust by 90.4% in the first quarter. Bank of America Corp DE now owns 2,682,265 shares of the real estate investment trust’s stock worth $17,810,000 after purchasing an additional 1,273,681 shares during the period. Institutional investors and hedge funds own 75.98% of the company’s stock.

About Diversified Healthcare Trust

Diversified Healthcare Trust is a real estate investment trust (REIT) specializing in the acquisition, ownership and management of healthcare properties across the United States. The company focuses on assets that serve the senior housing and post-acute care sectors, including skilled nursing facilities, assisted living communities, memory care centers and medical office buildings. By partnering with experienced operators, Diversified Healthcare Trust aims to generate stable, long-term cash flows through triple-net leases and percentage rent structures tailored to each property type.

The company’s portfolio spans multiple states and encompasses a mix of single-tenant and multi-tenant properties.