Omega Healthcare Investors, Inc. (NYSE:OHI) Sees Significant Growth in Short Interest

Key Points

• Omega Healthcare Investors reported a 29.1% increase in short interest, rising to 10,680,000 shares as of August 15th, indicating heightened market speculation against the stock.
• The company beat earnings expectations with an EPS of $0.77 for the quarter, surpassing consensus estimates of $0.45, while revenue increased by 11.8% year-over-year.
• Omega Healthcare declared a quarterly dividend of $0.67, which translates to a 6.3% dividend yield, despite a high payout ratio of 165.43%.

Omega Healthcare Investors, Inc. (NYSE:OHI - Get Free Report) saw a large increase in short interest in the month of August. As of August 15th, there was short interest totaling 10,680,000 shares, an increase of 29.1% from the July 31st total of 8,270,000 shares. Based on an average trading volume of 2,380,000 shares, the days-to-cover ratio is presently 4.5 days. Based on an average trading volume of 2,380,000 shares, the days-to-cover ratio is presently 4.5 days.

Omega Healthcare Investors Stock Performance

Shares of OHI stock traded down $0.53 on Tuesday, hitting $42.81. The company had a trading volume of 1,464,428 shares, compared to its average volume of 2,361,486. The firm has a market cap of $12.63 billion, a P/E ratio of 26.43, a price-to-earnings-growth ratio of 2.26 and a beta of 0.71. The company has a 50-day moving average price of $39.77 and a 200-day moving average price of $38.09. The company has a quick ratio of 7.10, a current ratio of 7.10 and a debt-to-equity ratio of 0.96. Omega Healthcare Investors has a twelve month low of $35.04 and a twelve month high of $44.42.

Omega Healthcare Investors (NYSE:OHI - Get Free Report) last issued its quarterly earnings data on Thursday, July 31st. The real estate investment trust reported $0.77 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.45 by $0.32. The business had revenue of $235.60 million during the quarter, compared to analysts' expectations of $248.49 million. Omega Healthcare Investors had a return on equity of 9.78% and a net margin of 42.23%.The company's revenue for the quarter was up 11.8% on a year-over-year basis. During the same quarter in the previous year, the firm posted $0.71 EPS. Omega Healthcare Investors has set its FY 2025 guidance at 3.040-3.070 EPS. As a group, equities research analysts predict that Omega Healthcare Investors will post 2.86 earnings per share for the current fiscal year.

Omega Healthcare Investors Dividend Announcement

The firm also recently declared a quarterly dividend, which was paid on Friday, August 15th. Investors of record on Monday, August 4th were paid a $0.67 dividend. This represents a $2.68 annualized dividend and a dividend yield of 6.3%. The ex-dividend date was Monday, August 4th. Omega Healthcare Investors's payout ratio is currently 165.43%.

Analyst Upgrades and Downgrades

A number of analysts have commented on the company. Wells Fargo & Company lifted their price target on Omega Healthcare Investors from $41.00 to $44.00 and gave the stock an "overweight" rating in a research report on Wednesday, August 27th. Royal Bank Of Canada lifted their price target on Omega Healthcare Investors from $39.00 to $41.00 and gave the stock a "sector perform" rating in a research report on Thursday, August 7th. Raymond James Financial reaffirmed an "outperform" rating on shares of Omega Healthcare Investors in a research report on Tuesday, September 2nd. Truist Financial lifted their price target on Omega Healthcare Investors from $39.00 to $44.00 and gave the stock a "hold" rating in a research report on Wednesday, September 3rd. Finally, Scotiabank lifted their price target on Omega Healthcare Investors from $39.00 to $42.00 and gave the stock a "sector perform" rating in a research report on Thursday, August 28th. Five investment analysts have rated the stock with a Buy rating and five have issued a Hold rating to the company's stock. According to data from MarketBeat, the stock presently has a consensus rating of "Moderate Buy" and an average target price of $43.38.

Insider Buying and Selling

In other Omega Healthcare Investors news, Director Lisa Egbuonu-Davis sold 2,500 shares of Omega Healthcare Investors stock in a transaction dated Friday, August 8th. The stock was sold at an average price of $40.16, for a total transaction of $100,400.00. Following the completion of the sale, the director owned 18,654 shares of the company's stock, valued at approximately $749,144.64. The trade was a 11.82% decrease in their position. The sale was disclosed in a legal filing with the SEC, which can be accessed through this link. Corporate insiders own 1.50% of the company's stock.

Hedge Funds Weigh In On Omega Healthcare Investors

Several institutional investors and hedge funds have recently modified their holdings of OHI. Ameriprise Financial Inc. increased its stake in shares of Omega Healthcare Investors by 3.9% in the 4th quarter. Ameriprise Financial Inc. now owns 776,715 shares of the real estate investment trust's stock valued at $29,398,000 after purchasing an additional 28,921 shares in the last quarter. Baird Financial Group Inc. increased its stake in shares of Omega Healthcare Investors by 0.8% in the 4th quarter. Baird Financial Group Inc. now owns 50,492 shares of the real estate investment trust's stock valued at $1,911,000 after purchasing an additional 380 shares in the last quarter. Cetera Investment Advisers increased its stake in shares of Omega Healthcare Investors by 5.6% in the 4th quarter. Cetera Investment Advisers now owns 93,096 shares of the real estate investment trust's stock valued at $3,524,000 after purchasing an additional 4,943 shares in the last quarter. Cresset Asset Management LLC purchased a new position in shares of Omega Healthcare Investors in the 4th quarter valued at about $201,000. Finally, CoreCap Advisors LLC increased its stake in shares of Omega Healthcare Investors by 177.3% in the 4th quarter. CoreCap Advisors LLC now owns 1,578 shares of the real estate investment trust's stock valued at $60,000 after purchasing an additional 1,009 shares in the last quarter. Hedge funds and other institutional investors own 65.25% of the company's stock.

About Omega Healthcare Investors

Omega Healthcare Investors, Inc engages in the provision of financing and capital to the long-term healthcare industry with a particular focus on skilled nursing facilities, assisted living facilities, independent living facilities, rehabilitation and acute care facilities, and medical office buildings.

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