Maxim Group Initiates Coverage on Diversified Healthcare Trust (NASDAQ:DHC)

Key Points

• Maxim Group initiated coverage on Diversified Healthcare Trust (NASDAQ:DHC) with a Buy rating and a $9.50 price target, implying roughly a 27% upside from current levels.
• Analyst views are mixed — the five recent ratings break down to 2 Buys, 2 Holds and 1 Sell, yielding an overall consensus of Hold and an average price target of $8.00.
• DHC reported a quarterly EPS miss (loss of $0.09 vs. $0.12 expected), has negative net margin and ROE, and trades with a market cap of $1.81 billion and a one-year range of $2.15–$7.66.

Equities researchers at Maxim Group began coverage on shares of Diversified Healthcare Trust (NASDAQ:DHC - Get Free Report) in a report released on Monday. The firm set a "buy" rating and a $9.50 price target on the real estate investment trust's stock. Maxim Group's price objective indicates a potential upside of 27.35% from the company's current price.

Several other equities research analysts also recently commented on DHC. Weiss Ratings reiterated a "sell (d-)" rating on shares of Diversified Healthcare Trust in a report on Monday, April 20th. Zacks Research upgraded shares of Diversified Healthcare Trust from a "strong sell" rating to a "hold" rating in a research note on Friday, February 20th. B. Riley Financial boosted their price objective on shares of Diversified Healthcare Trust from $6.50 to $8.50 and gave the company a "buy" rating in a report on Tuesday, March 3rd. Finally, Royal Bank Of Canada increased their price objective on shares of Diversified Healthcare Trust from $5.00 to $6.00 and gave the company a "sector perform" rating in a research report on Monday, March 2nd. Two research analysts have rated the stock with a Buy rating, two have given a Hold rating and one has assigned a Sell rating to the stock. According to data from MarketBeat.com, Diversified Healthcare Trust currently has an average rating of "Hold" and an average price target of $8.00.

Diversified Healthcare Trust Price Performance

Shares of NASDAQ:DHC opened at $7.46 on Monday. The company has a market capitalization of $1.81 billion, a PE ratio of -6.27 and a beta of 2.35. The business has a fifty day moving average price of $6.98 and a two-hundred day moving average price of $5.68. The company has a debt-to-equity ratio of 1.44, a current ratio of 2.36 and a quick ratio of 2.36. Diversified Healthcare Trust has a 1 year low of $2.15 and a 1 year high of $7.66.

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

Institutional Inflows and Outflows

A number of hedge funds and other institutional investors have recently modified their holdings of the company. Raymond James Financial Inc. purchased a new position in Diversified Healthcare Trust during the second quarter worth $28,000. CWM LLC raised its stake in shares of Diversified Healthcare Trust by 174.5% in the fourth quarter. CWM LLC now owns 6,555 shares of the real estate investment trust's stock valued at $32,000 after acquiring an additional 4,167 shares during the period. Ground Swell Capital LLC bought a new stake in shares of Diversified Healthcare Trust in the 3rd quarter worth about $45,000. Mercer Global Advisors Inc. ADV bought a new position in Diversified Healthcare Trust during the 4th quarter valued at about $49,000. Finally, L2 Asset Management LLC purchased a new stake in Diversified Healthcare Trust in the 4th quarter worth about $49,000. 75.98% of the stock is currently owned by institutional investors.

Diversified Healthcare Trust Company Profile

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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