Community Healthcare Trust Incorporated (NYSE:CHCT) Receives Consensus Recommendation of "Hold" from Brokerages

Key Points

• Analyst consensus is “Hold”: Three of five brokerages rate Community Healthcare Trust neutral, while two recommend buying; the average 12-month price target is $18.50 versus a recent share price of $14.98.
• Quarterly results fell short of expectations: The REIT reported $0.06 in earnings per share, below the $0.11 consensus estimate, and revenue of $30.97 million versus expectations of $31.77 million.
• The stock offers a high dividend yield but elevated payout ratio: Its $0.33 quarterly dividend equates to an annualized $1.32 payout and an 8.8% yield, while the payout ratio stands at 197.01%; insiders recently purchased shares.

Shares of Community Healthcare Trust Incorporated (NYSE:CHCT - Get Free Report) have been given an average rating of "Hold" by the five brokerages that are covering the company, MarketBeat Ratings reports. Three equities research analysts have rated the stock with a hold rating and two have assigned a buy rating to the company. The average twelve-month price objective among brokerages that have covered the stock in the last year is $18.50.

A number of research analysts have commented on the stock. Piper Sandler reduced their price target on shares of Community Healthcare Trust from $20.00 to $17.00 and set a "neutral" rating on the stock in a research report on Thursday, August 6th. Huntington began coverage on shares of Community Healthcare Trust in a report on Friday, July 17th. They issued an "outperform" rating and a $20.00 price objective for the company. Wall Street Zen cut shares of Community Healthcare Trust from a "buy" rating to a "hold" rating in a research note on Saturday, May 9th. Weiss Ratings raised shares of Community Healthcare Trust from a "hold (c-)" rating to a "hold (c)" rating in a report on Friday, June 12th. Finally, Truist Financial lifted their target price on shares of Community Healthcare Trust from $19.00 to $20.00 and gave the stock a "buy" rating in a research report on Thursday, June 11th.

Community Healthcare Trust Stock Up 0.5%

Shares of CHCT stock opened at $14.98 on Friday. The business has a 50-day moving average price of $16.82 and a two-hundred day moving average price of $16.97. Community Healthcare Trust has a 12-month low of $13.23 and a 12-month high of $19.17. The firm has a market cap of $429.18 million, a P/E ratio of 22.36 and a beta of 0.69.

Community Healthcare Trust (NYSE:CHCT - Get Free Report) last announced its quarterly earnings data on Tuesday, August 4th. The real estate investment trust reported $0.06 EPS for the quarter, missing the consensus estimate of $0.11 by ($0.05). The firm had revenue of $30.97 million for the quarter, compared to the consensus estimate of $31.77 million. Community Healthcare Trust had a net margin of 16.81% and a return on equity of 4.96%. As a group, research analysts expect that Community Healthcare Trust will post 1.87 EPS for the current fiscal year.

Community Healthcare Trust Cuts Dividend

The business also recently disclosed a quarterly dividend, which was paid on Monday, August 31st. Stockholders of record on Wednesday, August 19th were issued a $0.33 dividend. The ex-dividend date was Wednesday, August 19th. This represents a $1.32 annualized dividend and a dividend yield of 8.8%. Community Healthcare Trust's payout ratio is currently 197.01%.

Insider Transactions at Community Healthcare Trust

In related news, Director Robert Z. Hensley purchased 8,000 shares of the firm's stock in a transaction on Tuesday, August 11th. The shares were acquired at an average cost of $15.21 per share, with a total value of $121,680.00. Following the purchase, the director directly owned 103,702 shares of the company's stock, valued at approximately $1,577,307.42. This trade represents a 8.36% increase in their ownership of the stock. The purchase was disclosed in a document filed with the SEC, which is available at the SEC website. Also, CEO David H. Dupuy acquired 10,000 shares of the stock in a transaction on Friday, August 14th. The stock was bought at an average price of $15.13 per share, with a total value of $151,300.00. Following the transaction, the chief executive officer directly owned 557,262 shares of the company's stock, valued at approximately $8,431,374.06. The trade was a 1.83% increase in their position. The disclosure for this purchase is available in the SEC filing. Insiders own 5.30% of the company's stock.

Institutional Inflows and Outflows

Several hedge funds have recently made changes to their positions in the company. Vanguard Group Inc. boosted its position in Community Healthcare Trust by 2.5% during the 3rd quarter. Vanguard Group Inc. now owns 2,804,298 shares of the real estate investment trust's stock valued at $42,906,000 after buying an additional 67,241 shares during the period. BlackRock Inc. purchased a new position in shares of Community Healthcare Trust in the second quarter valued at about $48,221,000. Systematic Financial Management LP raised its stake in shares of Community Healthcare Trust by 3.6% during the fourth quarter. Systematic Financial Management LP now owns 1,123,736 shares of the real estate investment trust's stock valued at $18,452,000 after acquiring an additional 38,532 shares during the last quarter. Invesco Ltd. raised its stake in shares of Community Healthcare Trust by 38.9% during the third quarter. Invesco Ltd. now owns 1,060,213 shares of the real estate investment trust's stock valued at $16,221,000 after acquiring an additional 297,179 shares during the last quarter. Finally, Kennedy Capital Management LLC raised its stake in shares of Community Healthcare Trust by 26.5% during the fourth quarter. Kennedy Capital Management LLC now owns 1,019,810 shares of the real estate investment trust's stock valued at $16,745,000 after acquiring an additional 213,349 shares during the last quarter. 87.84% of the stock is owned by hedge funds and other institutional investors.

Community Healthcare Trust Company Profile

Community Healthcare Trust Incorporated NYSE: CHCT is a real estate investment trust that specializes in owning and leasing healthcare-related properties. The company's portfolio is focused primarily on senior housing and care facilities, including skilled nursing centers, assisted living communities, memory care units, independent living apartments and continuing care retirement communities. Through long‐term, triple‐net leases, Community Healthcare Trust seeks stable, predictable cash flows by partnering with experienced operators that manage day-to-day resident care and property operations.

As of the latest reporting, Community Healthcare Trust's holdings span multiple regions across the United States, with properties located in both urban and suburban markets.

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