Primecap Management Co. CA Purchases Shares of 385,509 Welltower Inc. $WELL

Key Points

• Primecap Management initiated a position in Welltower by purchasing 385,509 shares valued at approximately $87.5 million, joining other major institutions investing in the healthcare REIT. Institutional investors collectively own 94.8% of Welltower.
• Welltower’s shares opened at $241.81, near their 52-week high, while analysts maintain a “Moderate Buy” consensus with an average price target of $246.11. Recent targets range as high as $271.
• The company increased its quarterly dividend to $0.85 per share, or $3.40 annualized, resulting in a 1.4% yield. Its latest quarterly revenue rose 39.1% year over year to $3.54 billion, although EPS missed estimates.

Primecap Management Co. CA bought a new position in shares of Welltower Inc. (NYSE:WELL - Free Report) during the second quarter, according to its most recent Form 13F filing with the Securities & Exchange Commission. The firm bought 385,509 shares of the real estate investment trust's stock, valued at approximately $87,499,000. Primecap Management Co. CA owned approximately 0.05% of Welltower as of its most recent SEC filing.

Several other hedge funds and other institutional investors have also recently bought and sold shares of WELL. Norges Bank acquired a new position in shares of Welltower in the 4th quarter valued at $5,466,264,000. Cardano Risk Management B.V. boosted its position in shares of Welltower by 955.3% during the 4th quarter. Cardano Risk Management B.V. now owns 9,513,540 shares of the real estate investment trust's stock valued at $1,765,808,000 after acquiring an additional 8,612,016 shares in the last quarter. Legal & General Group Plc bought a new stake in Welltower in the second quarter valued at about $1,599,351,000. Capital World Investors increased its stake in Welltower by 153.0% in the fourth quarter. Capital World Investors now owns 10,744,520 shares of the real estate investment trust's stock valued at $1,994,290,000 after acquiring an additional 6,497,258 shares during the period. Finally, BlackRock Inc. raised its position in Welltower by 5.5% in the second quarter. BlackRock Inc. now owns 78,049,214 shares of the real estate investment trust's stock worth $17,714,830,000 after purchasing an additional 4,045,458 shares in the last quarter. 94.80% of the stock is owned by institutional investors.

Welltower Stock Performance

NYSE WELL opened at $241.81 on Thursday. The firm has a market cap of $174.28 billion, a price-to-earnings ratio of 110.92, a PEG ratio of 1.15 and a beta of 0.76. The company has a 50 day moving average of $234.27 and a 200-day moving average of $217.15. The company has a current ratio of 3.16, a quick ratio of 3.16 and a debt-to-equity ratio of 0.37. Welltower Inc. has a 1-year low of $163.75 and a 1-year high of $255.20.

Welltower (NYSE:WELL - Get Free Report) last posted its earnings results on Monday, July 27th. The real estate investment trust reported $0.61 earnings per share (EPS) for the quarter, missing analysts' consensus estimates of $0.66 by ($0.05). The firm had revenue of $3.54 billion during the quarter, compared to the consensus estimate of $3.40 billion. Welltower had a net margin of 12.15% and a return on equity of 3.56%. The business's revenue was up 39.1% on a year-over-year basis. During the same quarter last year, the firm posted $1.28 EPS. Welltower has set its FY 2026 guidance at 6.360-6.440 EPS. On average, equities analysts forecast that Welltower Inc. will post 6.44 earnings per share for the current fiscal year.

Welltower Increases Dividend

The firm also recently disclosed a quarterly dividend, which was paid on Thursday, August 20th. Shareholders of record on Wednesday, August 12th were paid a $0.85 dividend. This is an increase from Welltower's previous quarterly dividend of $0.74. This represents a $3.40 dividend on an annualized basis and a yield of 1.4%. The ex-dividend date of this dividend was Wednesday, August 12th. Welltower's payout ratio is presently 155.96%.

Analysts Set New Price Targets

WELL has been the topic of a number of recent research reports. Deutsche Bank Aktiengesellschaft lifted their price objective on Welltower from $215.00 to $265.00 and gave the company a "buy" rating in a report on Wednesday, July 1st. UBS Group raised their target price on Welltower from $249.00 to $271.00 and gave the stock a "buy" rating in a research report on Wednesday, July 8th. Weiss Ratings lowered Welltower from a "buy (b-)" rating to a "hold (c+)" rating in a research note on Wednesday, June 24th. Barclays began coverage on Welltower in a research report on Tuesday, July 7th. They issued an "equal weight" rating and a $254.00 price target on the stock. Finally, Evercore reiterated an "outperform" rating and set a $260.00 price objective on shares of Welltower in a research note on Thursday, July 30th. Fourteen analysts have rated the stock with a Buy rating and three have issued a Hold rating to the company's stock. Based on data from MarketBeat, the stock has a consensus rating of "Moderate Buy" and an average target price of $246.11.

Welltower Profile

Welltower Inc NYSE: WELL is a real estate investment trust (REIT) that acquires and manages real estate serving the health care industry. The company specializes in healthcare infrastructure, owning and operating a diversified portfolio of senior housing, post-acute and long-term care communities, and outpatient medical properties. Welltower's assets are designed to support the delivery of health care services through a combination of leased properties, joint ventures, and other capital arrangements with health care operators and providers.

The company's property types include assisted living, memory care, independent living and skilled nursing facilities, as well as medical office buildings and other outpatient-care real estate such as ambulatory surgery centers and specialty clinics.

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