Diversified Healthcare Trust (NASDAQ:DHC) Releases Quarterly Earnings Results, Misses Estimates By $0.01 EPS

Key Points

• Diversified Healthcare Trust reported a quarterly loss of $0.16 per share, missing analysts’ estimate by $0.01. Revenue totaled $365.39 million, below expectations of $370.75 million, while the company posted negative net margin and return on equity.
• The stock traded at $8.81, down $0.09, with a market capitalization of approximately $2.13 billion. Shares have ranged from $3.23 to $9.66 over the past year, and institutional investors own 75.98% of the stock.
• The REIT declared a quarterly dividend of $0.01 per share, equivalent to a $0.04 annualized payout and a 0.5% yield. Analysts maintain a generally positive outlook, with a consensus “Moderate Buy” rating and a $9.83 price target.

Diversified Healthcare Trust (NASDAQ:DHC - Get Free Report) released its quarterly earnings results on Monday. The real estate investment trust reported ($0.16) earnings per share (EPS) for the quarter, missing analysts' consensus estimates of ($0.15) by ($0.01), FiscalAI reports. Diversified Healthcare Trust had a negative return on equity of 18.75% and a negative net margin of 21.10%.The firm had revenue of $365.39 million during the quarter, compared to analysts' expectations of $370.75 million.

Diversified Healthcare Trust Stock Performance

DHC traded down $0.09 during midday trading on Monday, reaching $8.81. The company had a trading volume of 2,294,368 shares, compared to its average volume of 1,832,993. The company has a quick ratio of 5.36, a current ratio of 5.36 and a debt-to-equity ratio of 1.48. The business has a 50-day moving average of $8.97 and a two-hundred day moving average of $7.67. The company has a market cap of $2.13 billion, a P/E ratio of -6.62 and a beta of 2.30. Diversified Healthcare Trust has a 1 year low of $3.23 and a 1 year high of $9.66.

Diversified Healthcare Trust Announces Dividend

The business also recently declared a quarterly dividend, which will be paid on Thursday, August 13th. Shareholders of record on Monday, July 20th will be issued a dividend of $0.01 per share. This represents a $0.04 annualized dividend and a yield of 0.5%. The ex-dividend date of this dividend is Monday, July 20th. Diversified Healthcare Trust's payout ratio is currently -3.01%.

Institutional Inflows and Outflows

Hedge funds have recently made changes to their positions in the stock. Raymond James Financial Inc. bought a new stake in Diversified Healthcare Trust during the 2nd quarter worth approximately $28,000. Mercer Global Advisors Inc. ADV purchased a new position in Diversified Healthcare Trust during the fourth quarter valued at approximately $49,000. L2 Asset Management LLC bought a new position in shares of Diversified Healthcare Trust in the fourth quarter worth approximately $49,000. Corient Private Wealth LLC increased its stake in shares of Diversified Healthcare Trust by 24.1% in the fourth quarter. Corient Private Wealth LLC now owns 15,664 shares of the real estate investment trust's stock worth $76,000 after purchasing an additional 3,043 shares in the last quarter. Finally, Franklin Resources Inc. purchased a new stake in shares of Diversified Healthcare Trust in the fourth quarter worth $77,000. 75.98% of the stock is currently owned by institutional investors.

Analysts Set New Price Targets

A number of research analysts have weighed in on the company. Maxim Group increased their target price on Diversified Healthcare Trust from $10.00 to $10.50 and gave the company a "buy" rating in a report on Wednesday, June 3rd. Freedom Capital upgraded Diversified Healthcare Trust to a "strong-buy" rating in a research note on Thursday, April 30th. B. Riley Financial upped their price target on shares of Diversified Healthcare Trust from $8.50 to $11.00 and gave the company a "buy" rating in a research report on Tuesday, June 9th. Royal Bank Of Canada raised their price objective on shares of Diversified Healthcare Trust from $6.00 to $8.00 and gave the stock a "sector perform" rating in a report on Thursday, June 18th. Finally, Wall Street Zen lowered shares of Diversified Healthcare Trust from a "hold" rating to a "sell" rating in a research report on Saturday, May 9th. One equities research analyst has rated the stock with a Strong Buy rating, two have given a Buy rating, two have issued a Hold rating and one has assigned a Sell rating to the company's stock. According to MarketBeat, Diversified Healthcare Trust presently has an average rating of "Moderate Buy" and a consensus target price of $9.83.

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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