Diversified Healthcare Trust (NASDAQ:DHC) Shares Gap Down - Time to Sell?

Key Points

• Diversified Healthcare Trust experienced a stock gap down, opening at $3.64 after a previous close of $3.77, indicating potential market concerns.
• The company reported a negative return on equity of 14.69% and a negative net margin of 18.83%, reflecting financial struggles despite meeting earnings estimates.
• A recent quarterly dividend of $0.01 per share was paid, translating to a yield of 1.1%, but the company's dividend payout ratio stands at -3.36%, indicating financial challenges in sustaining dividends.

Diversified Healthcare Trust (NASDAQ:DHC - Get Free Report) gapped down prior to trading on Wednesday . The stock had previously closed at $3.77, but opened at $3.64. Diversified Healthcare Trust shares last traded at $3.82, with a volume of 14,525 shares trading hands.

Diversified Healthcare Trust Stock Down 0.7%

The business has a 50 day moving average of $3.57 and a 200 day moving average of $3.03. The company has a debt-to-equity ratio of 1.42, a current ratio of 6.35 and a quick ratio of 6.35. The firm has a market capitalization of $904.08 million, a price-to-earnings ratio of -3.15 and a beta of 2.62.

Diversified Healthcare Trust (NASDAQ:DHC - Get Free Report) last issued its earnings results on Monday, August 4th. The real estate investment trust reported $0.08 EPS for the quarter, meeting analysts' consensus estimates of $0.08. The business had revenue of $382.71 million during the quarter, compared to analyst estimates of $382.74 million. Diversified Healthcare Trust had a negative return on equity of 14.69% and a negative net margin of 18.83%.

Diversified Healthcare Trust Announces Dividend

The business also recently disclosed a quarterly dividend, which was paid on Thursday, August 14th. Shareholders of record on Monday, July 21st were paid a dividend of $0.01 per share. This represents a $0.04 annualized dividend and a yield of 1.1%. The ex-dividend date was Monday, July 21st. Diversified Healthcare Trust's dividend payout ratio is currently -3.36%.

Institutional Inflows and Outflows

Several hedge funds have recently bought and sold shares of the stock. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. raised its stake in Diversified Healthcare Trust by 4.1% during the fourth quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 125,212 shares of the real estate investment trust's stock worth $288,000 after acquiring an additional 4,931 shares in the last quarter. Farther Finance Advisors LLC grew its holdings in shares of Diversified Healthcare Trust by 169.2% during the second quarter. Farther Finance Advisors LLC now owns 10,161 shares of the real estate investment trust's stock worth $36,000 after purchasing an additional 6,387 shares during the last quarter. Rhumbline Advisers grew its holdings in shares of Diversified Healthcare Trust by 1.9% during the second quarter. Rhumbline Advisers now owns 388,581 shares of the real estate investment trust's stock worth $1,391,000 after purchasing an additional 7,084 shares during the last quarter. State of Wyoming grew its holdings in shares of Diversified Healthcare Trust by 15.2% during the fourth quarter. State of Wyoming now owns 54,284 shares of the real estate investment trust's stock worth $125,000 after purchasing an additional 7,175 shares during the last quarter. Finally, Raymond James Financial Inc. bought a new stake in shares of Diversified Healthcare Trust during the second quarter worth $28,000. 75.98% of the stock is currently owned by institutional investors and hedge funds.

Diversified Healthcare Trust Company Profile

Diversified Healthcare Trust is a real estate investment trust, which engages in the ownership of senior living communities, medical office buildings, and wellness centers. It operates through the following segments: Office Portfolio, Senior Housing Operating Portfolio (SHOP), and Non-Segment. The Office Portfolio segment consists of medical office properties leased to medical providers and other medical related businesses, as well as life science properties leased to biotech laboratories and other similar tenants.

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