Welltower (NYSE:WELL) Raised to Strong-Buy at Jefferies Financial Group

Key Points

• Jefferies upgraded Welltower to “strong buy,” adding to a broadly positive analyst outlook. The stock has a consensus “Moderate Buy” rating and an average target price of $255.39.
• Welltower reported 39.1% year-over-year revenue growth to $3.54 billion, but quarterly EPS of $0.61 missed estimates of $0.66. The shares opened at $231.40, below their 52-week high of $255.20.
• Investor sentiment is supported by favorable aging-population trends and institutional ownership, which stands at 94.8%; however, analysts caution that the stock’s high valuation leaves it vulnerable if operating growth slows.

Welltower (NYSE:WELL - Get Free Report) was upgraded by equities researchers at Jefferies Financial Group to a "strong-buy" rating in a research note issued on Friday, Zacks reports.

WELL has been the topic of several other reports. Wells Fargo & Company lifted their price target on Welltower from $237.00 to $266.00 and gave the company an "overweight" rating in a research report on Tuesday, September 1st. Citigroup upped their price objective on Welltower from $255.00 to $275.00 and gave the company a "buy" rating in a report on Friday, July 31st. KeyCorp raised their target price on Welltower from $240.00 to $275.00 and gave the company an "overweight" rating in a research note on Tuesday, August 4th. Scotiabank lifted their target price on Welltower from $244.00 to $251.00 and gave the stock an "outperform" rating in a report on Wednesday, September 2nd. Finally, Weiss Ratings reiterated a "hold (c+)" rating on shares of Welltower in a research report on Monday. One equities research analyst has rated the stock with a Strong Buy rating, fourteen have issued a Buy rating and two have given a Hold rating to the stock. According to data from MarketBeat, the company currently has a consensus rating of "Moderate Buy" and a consensus target price of $255.39.

Welltower Trading Down 0.9%

NYSE:WELL opened at $231.40 on Friday. The business has a fifty day moving average of $237.14 and a 200-day moving average of $221.38. The stock has a market cap of $166.78 billion, a price-to-earnings ratio of 106.15, a PEG ratio of 1.12 and a beta of 0.76. The company has a debt-to-equity ratio of 0.37, a quick ratio of 3.16 and a current ratio of 3.16. Welltower has a 1 year low of $163.75 and a 1 year high of $255.20.

Welltower (NYSE:WELL - Get Free Report) last released its earnings results on Monday, July 27th. The real estate investment trust reported $0.61 EPS for the quarter, missing the consensus estimate of $0.66 by ($0.05). Welltower had a net margin of 12.15% and a return on equity of 3.56%. The company had revenue of $3.54 billion for the quarter, compared to analyst estimates of $3.40 billion. During the same period in the previous year, the business posted $1.28 EPS. The firm's quarterly revenue was up 39.1% on a year-over-year basis. Welltower has set its FY 2026 guidance at 6.360-6.440 EPS. Equities analysts predict that Welltower will post 6.43 earnings per share for the current year.

Insider Buying and Selling at Welltower

In related news, Director Andrew Gundlach bought 5,000 shares of the firm's stock in a transaction that occurred on Wednesday, August 26th. The shares were acquired at an average cost of $242.06 per share, for a total transaction of $1,210,300.00. Following the acquisition, the director directly owned 30,000 shares of the company's stock, valued at $7,261,800. The trade was a 20.00% increase in their position. The transaction was disclosed in a document filed with the SEC, which is available through this link. Purchased indirectly through two trusts. The transaction was executed in multiple trades at prices ranging from $241.59 to $242.59. The reported $242.06 price is the weighted-average purchase price. 0.37% of the stock is currently owned by corporate insiders.

Institutional Investors Weigh In On Welltower

Several hedge funds have recently modified their holdings of WELL. BlackRock Inc. raised its holdings in Welltower by 5.5% during the 2nd quarter. BlackRock Inc. now owns 78,049,214 shares of the real estate investment trust's stock worth $17,714,830,000 after buying an additional 4,045,458 shares during the period. Capital International Investors boosted its holdings in shares of Welltower by 2.0% in the fourth quarter. Capital International Investors now owns 47,431,769 shares of the real estate investment trust's stock worth $8,805,411,000 after buying an additional 915,514 shares during the period. State Street Corp boosted its holdings in shares of Welltower by 1.4% in the second quarter. State Street Corp now owns 42,138,810 shares of the real estate investment trust's stock worth $9,564,246,000 after buying an additional 578,033 shares during the period. Norges Bank purchased a new position in shares of Welltower in the fourth quarter worth approximately $5,466,264,000. Finally, Bank of America Corp DE increased its position in shares of Welltower by 6.6% in the first quarter. Bank of America Corp DE now owns 21,750,501 shares of the real estate investment trust's stock worth $4,300,291,000 after acquiring an additional 1,347,243 shares in the last quarter. 94.80% of the stock is owned by hedge funds and other institutional investors.

Key Headlines Impacting Welltower

Here are the key news stories impacting Welltower this week:

• Positive Sentiment: JPMorgan upgraded Welltower from “Neutral” to “Overweight” and set a $260 price target, implying roughly 12% upside from the referenced price. The upgrade indicates improved confidence in the REIT’s senior-housing and healthcare real-estate outlook. JP Morgan Upgrades Welltower to Overweight from Neutral
• Positive Sentiment: The JPMorgan upgrade initially lifted investor sentiment, with coverage noting that Welltower shares rose following the change in rating. Welltower Shares Rise After JPMorgan Upgrade
• Positive Sentiment: Welltower’s long-term opportunity is supported by favorable demographics: approximately two million Americans are expected to turn 80 this year, while senior-housing construction remains historically low. Those conditions could support occupancy, rents and development returns over time. 4 Senior Housing REITs Betting Big on America’s Aging Population
• Neutral Sentiment: Recent reports highlighted strong second-quarter revenue growth, including a 39.1% year-over-year increase. However, the latest reported quarter also included an earnings-per-share miss, making the quality and sustainability of growth important for investors. Welltower Stock Reports 39.1 Percent Revenue Growth
• Negative Sentiment: A Seeking Alpha analysis argued that Welltower’s shares are priced for continued compounding even as growth may be slowing. With the stock trading at a high earnings multiple, any deceleration in operating growth or disappointment in guidance could pressure the shares. Welltower: Priced For Compounding That Is Already Slowing

About Welltower

Welltower Inc is a real estate investment trust (REIT) that owns, operates and finances healthcare-related real estate. The company focuses on properties that support healthcare delivery and services, including senior housing communities, outpatient medical facilities and post-acute care properties.

Welltower partners with healthcare providers, senior housing operators and other service providers to develop and manage facilities designed to serve aging populations and patients requiring ongoing or specialized care.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.