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

Diversified Healthcare Trust (NASDAQ:DHC) shares gapped down prior to trading on Tuesday after the company announced weaker than expected quarterly earnings. 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 traded.

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 analysts’ expectations of $376.80 million. Diversified Healthcare Trust had a negative return on equity of 15.36% and a negative net margin of 24.14%. During the same quarter in the prior year, the firm earned $0.03 earnings per share.

Diversified Healthcare Trust Dividend Announcement

The business also recently declared a quarterly dividend, which will be paid on Thursday, November 14th. Investors of record on Monday, October 28th will be issued a $0.01 dividend. The ex-dividend date is Monday, October 28th. This represents a $0.04 annualized dividend and a yield of 1.41%. Diversified Healthcare Trust’s dividend payout ratio is presently -2.48%.

Analyst Upgrades and Downgrades

DHC has been the subject of several research analyst reports. JMP Securities reissued a “market perform” rating on shares of Diversified Healthcare Trust in a report on Wednesday, August 21st. StockNews.com downgraded Diversified Healthcare Trust from a “hold” rating to a “sell” rating in a research note on Saturday, August 31st. Royal Bank of Canada boosted their target price on shares of Diversified Healthcare Trust from $2.00 to $3.00 and gave the company an “underperform” rating in a research note on Monday, October 14th. Finally, B. Riley boosted their price target on Diversified Healthcare Trust from $5.00 to $6.00 and gave the stock a “buy” rating in a research report on Monday, August 5th.

Institutional Inflows and Outflows

Institutional investors and hedge funds have recently modified their holdings of the business. Allspring Global Investments Holdings LLC grew its position in shares of Diversified Healthcare Trust by 99.5% in the first quarter. Allspring Global Investments Holdings LLC now owns 15,300 shares of the real estate investment trust’s stock valued at $38,000 after purchasing an additional 7,629 shares during the last quarter. Atomi Financial Group Inc. bought a new stake in Diversified Healthcare Trust during the first quarter worth about $46,000. New England Private Wealth Advisors LLC acquired a new stake in shares of Diversified Healthcare Trust during the second quarter worth approximately $62,000. XTX Topco Ltd bought a new position in shares of Diversified Healthcare Trust in the second quarter valued at approximately $74,000. Finally, Creative Planning boosted its holdings in shares of Diversified Healthcare Trust by 14.1% in the 3rd quarter. Creative Planning now owns 22,401 shares of the real estate investment trust’s stock worth $94,000 after acquiring an additional 2,767 shares in the last quarter. Hedge funds and other institutional investors own 75.98% of the company’s stock.

Diversified Healthcare Trust Stock Down 19.6 %

The stock has a market cap of $680.83 million, a price-to-earnings ratio of -1.76 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. The firm’s 50-day simple moving average is $3.60 and its two-hundred day simple moving average is $3.13.

Diversified Healthcare Trust Company Profile

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.