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

Diversified Healthcare Trust (NASDAQ:DHC) shares 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 changing hands.

The real estate investment trust reported ($0.41) EPS for the quarter, missing the consensus estimate of $0.05 by ($0.46). Diversified Healthcare Trust had a negative net margin of 24.14% and a negative return on equity of 15.36%. The firm had revenue of $373.64 million during the quarter, compared to the consensus estimate of $376.80 million. During the same period in the previous year, the company posted $0.03 EPS.

Diversified Healthcare Trust Announces Dividend

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

Wall Street Analysts Forecast Growth

A number of research analysts recently weighed in on the stock. Royal Bank of Canada lifted their price target 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. B. Riley upped their target price on shares of Diversified Healthcare Trust from $5.00 to $6.00 and gave the company a “buy” rating in a report on Monday, August 5th. JMP Securities reissued a “market perform” rating on shares of Diversified Healthcare Trust in a research report on Wednesday, August 21st. Finally, StockNews.com lowered Diversified Healthcare Trust from a “hold” rating to a “sell” rating in a report on Saturday, August 31st.

Hedge Funds Weigh In On Diversified Healthcare Trust

Hedge funds and other institutional investors have recently added to or reduced their stakes in the stock. Allspring Global Investments Holdings LLC raised its position 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. Mirae Asset Global Investments Co. Ltd. acquired a new position in shares of Diversified Healthcare Trust in the first quarter valued at approximately $187,000. Atomi Financial Group Inc. bought a new stake in Diversified Healthcare Trust during the 1st quarter worth approximately $46,000. CANADA LIFE ASSURANCE Co raised its stake in shares of Diversified Healthcare Trust by 2.1% during the first quarter. CANADA LIFE ASSURANCE Co now owns 245,882 shares of the real estate investment trust’s stock valued at $602,000 after acquiring an additional 4,974 shares during the last quarter. Finally, Black Maple Capital Management LP acquired a new stake in Diversified Healthcare Trust in the first quarter valued at $246,000. 75.98% of the stock is owned by institutional investors and hedge funds.

Diversified Healthcare Trust Stock Performance

The company has a 50-day moving average of $3.60 and a 200-day moving average of $3.13. The firm has a market capitalization of $680.83 million, a P/E ratio of -1.76 and a beta of 2.23. The company has a current ratio of 11.63, a quick ratio of 11.63 and a debt-to-equity ratio of 1.36.

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.