Diversified Healthcare Trust (NASDAQ:DHC) Receives Consensus Recommendation of "Moderate Buy" from Brokerages

Key Points

• Consensus "Moderate Buy": Six analysts give DHC a consensus "Moderate Buy" (1 sell, 2 hold, 2 buy, 1 strong buy) with an average 12‑month target price of $8.00 and recent targets up to $9.50.
• Q earnings miss and negative profitability: DHC reported EPS of -$0.09 versus a $0.12 estimate and revenue of $379.6M versus $392.9M, resulting in negative ROE (‑15.98%) and net margin (‑18.59%); shares traded around $7.84 with a market cap near $1.9B.
• Small dividend and high institutional ownership: The company announced a $0.01 quarterly dividend (annualized $0.04, ~0.5% yield; ex‑dividend Apr 21, payable May 14) and roughly 76% of shares are held by institutions.

Shares of Diversified Healthcare Trust (NASDAQ:DHC - Get Free Report) have received a consensus recommendation of "Moderate Buy" from the six research firms that are presently covering the firm, MarketBeat.com reports. One equities research analyst has rated the stock with a sell recommendation, two have issued a hold recommendation, two have given a buy recommendation and one has issued a strong buy recommendation on the company. The average twelve-month target price among brokers that have issued ratings on the stock in the last year is $8.00.

A number of equities research analysts have recently commented on the stock. Maxim Group began coverage on shares of Diversified Healthcare Trust in a research note on Monday, April 27th. They issued a "buy" rating and a $9.50 price objective on the stock. Zacks Research raised shares of Diversified Healthcare Trust from a "strong sell" rating to a "hold" rating in a research note on Friday, February 20th. Weiss Ratings reissued a "sell (d-)" rating on shares of Diversified Healthcare Trust in a research report on Monday, April 20th. B. Riley Financial upped their target price on Diversified Healthcare Trust from $6.50 to $8.50 and gave the company a "buy" rating in a research report on Tuesday, March 3rd. Finally, Royal Bank Of Canada lifted their target price on Diversified Healthcare Trust from $5.00 to $6.00 and gave the stock a "sector perform" rating in a report on Monday, March 2nd.

Diversified Healthcare Trust Trading Up 4.0%

NASDAQ DHC opened at $7.84 on Friday. The firm has a market capitalization of $1.90 billion, a PE ratio of -6.59 and a beta of 2.35. The business's 50-day moving average price is $7.06 and its two-hundred day moving average price is $5.75. The company has a current ratio of 2.36, a quick ratio of 2.36 and a debt-to-equity ratio of 1.44. Diversified Healthcare Trust has a 12 month low of $2.15 and a 12 month high of $7.88.

Diversified Healthcare Trust (NASDAQ:DHC - Get Free Report) last posted its quarterly earnings data on Monday, February 23rd. The real estate investment trust reported ($0.09) EPS for the quarter, missing analysts' consensus estimates of $0.12 by ($0.21). The company had revenue of $379.57 million during the quarter, compared to analyst estimates of $392.89 million. Diversified Healthcare Trust had a negative return on equity of 15.98% and a negative net margin of 18.59%. On average, analysts expect that Diversified Healthcare Trust will post 0.57 EPS for the current year.

Diversified Healthcare Trust Announces Dividend

The company also recently announced a quarterly dividend, which will be paid on Thursday, May 14th. Stockholders of record on Tuesday, April 21st will be paid a $0.01 dividend. The ex-dividend date is Tuesday, April 21st. This represents a $0.04 annualized dividend and a dividend yield of 0.5%. Diversified Healthcare Trust's dividend payout ratio (DPR) is currently -3.36%.

Institutional Investors Weigh In On Diversified Healthcare Trust

Several hedge funds and other institutional investors have recently modified their holdings of the company. Raymond James Financial Inc. acquired a new stake in Diversified Healthcare Trust in the 2nd quarter valued at $28,000. Summit Securities Group LLC bought a new position in Diversified Healthcare Trust during the 1st quarter valued at $31,000. CWM LLC boosted its holdings in Diversified Healthcare Trust by 174.5% during the fourth quarter. CWM LLC now owns 6,555 shares of the real estate investment trust's stock worth $32,000 after purchasing an additional 4,167 shares during the last quarter. Ground Swell Capital LLC bought a new position in shares of Diversified Healthcare Trust during the 3rd quarter worth approximately $45,000. Finally, Mercer Global Advisors Inc. ADV purchased a new position in shares of Diversified Healthcare Trust in the 4th quarter worth approximately $49,000. Institutional investors 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.

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