Diversified Healthcare Trust (NASDAQ:DHC) Trading Up 10% - Should You Buy?

Key Points

• Diversified Healthcare Trust shares surged 10% to $3.71 during trading, with a significant drop in average daily volume to 344,545 shares.
• The company reported a quarterly EPS of $0.08, meeting analysts' expectations, and a revenue of $382.71 million for the quarter.
• A quarterly dividend of $0.01 per share has been declared, providing a 1.1% yield, although the company's dividend payout ratio is currently negative.

Diversified Healthcare Trust (NASDAQ:DHC - Get Free Report)'s share price traded up 10% during mid-day trading on Tuesday . The company traded as high as $3.64 and last traded at $3.71. 344,545 shares changed hands during mid-day trading, a decline of 63% from the average session volume of 942,166 shares. The stock had previously closed at $3.37.

Diversified Healthcare Trust Stock Down 3.2%

The business's 50 day moving average is $3.54 and its 200-day moving average is $2.95. 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 company has a market cap of $813.55 million, a PE ratio of -2.83 and a beta of 2.52.

Diversified Healthcare Trust (NASDAQ:DHC - Get Free Report) last issued its quarterly earnings data on Monday, August 4th. The real estate investment trust reported $0.08 earnings per share (EPS) for the quarter, hitting the consensus estimate of $0.08. Diversified Healthcare Trust had a negative net margin of 18.83% and a negative return on equity of 14.69%. The company had revenue of $382.71 million for the quarter, compared to the consensus estimate of $382.74 million.

Diversified Healthcare Trust Announces Dividend

The company also recently disclosed a quarterly dividend, which was paid on Thursday, August 14th. Shareholders of record on Monday, July 21st were given a $0.01 dividend. The ex-dividend date of this dividend was Monday, July 21st. This represents a $0.04 annualized dividend and a yield of 1.2%. Diversified Healthcare Trust's dividend payout ratio (DPR) is -3.36%.

Hedge Funds Weigh In On Diversified Healthcare Trust

Several large investors have recently added to or reduced their stakes in the company. Park West Asset Management LLC acquired a new position in Diversified Healthcare Trust during the first quarter worth about $8,583,000. Goldman Sachs Group Inc. grew its position in Diversified Healthcare Trust by 158.9% in the first quarter. Goldman Sachs Group Inc. now owns 3,862,334 shares of the real estate investment trust's stock valued at $9,270,000 after acquiring an additional 2,370,459 shares during the period. Carronade Capital Management LP acquired a new position in Diversified Healthcare Trust in the first quarter worth $4,857,000. BlackBarn Capital Partners LP lifted its stake in shares of Diversified Healthcare Trust by 41.8% during the fourth quarter. BlackBarn Capital Partners LP now owns 6,250,000 shares of the real estate investment trust's stock valued at $14,375,000 after acquiring an additional 1,841,503 shares during the period. Finally, LDR Capital Management LLC acquired a new position in Diversified Healthcare Trust in the second quarter valued at about $2,560,000. 75.98% of the stock is currently owned by institutional investors.

About Diversified Healthcare Trust

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.