Global Medical REIT (NYSE:XRN) Share Price Crosses Above Fifty Day Moving Average - Should You Sell?

Key Points

• Global Medical REIT shares briefly moved above their 50-day moving average, reaching $36.95 before trading at $36.47; the stock’s 200-day average is $35.93.
• Analyst sentiment remains cautious, with a consensus “Hold” rating from eight analysts and an average price target of $40.25. Recent targets range from $40 to $42, while one research firm downgraded the stock to “Sell.”
• The REIT reported quarterly EPS of $4.78, well above the $0.83 estimate, and announced a monthly dividend of $0.16 per share, representing an approximately 5.3% annualized yield. Insiders also purchased 71,525 shares over the past three months.

Global Medical REIT Inc. (NYSE:XRN - Get Free Report) shares crossed above its fifty day moving average during trading on Monday . The stock has a fifty day moving average of $36.80 and traded as high as $36.95. Global Medical REIT shares last traded at $36.47, with a volume of 84,942 shares.

Wall Street Analysts Forecast Growth

Several brokerages recently issued reports on XRN. BMO Capital Markets boosted their price target on Global Medical REIT from $39.00 to $40.00 and gave the company a "market perform" rating in a research report on Monday, July 13th. Raymond James Financial started coverage on Global Medical REIT in a research note on Wednesday, June 17th. They set a "market perform" rating for the company. Wall Street Zen downgraded Global Medical REIT from a "hold" rating to a "sell" rating in a research note on Saturday, May 9th. Weiss Ratings raised Global Medical REIT from a "sell (d+)" rating to a "hold (c)" rating in a report on Thursday, August 13th. Finally, Citizens Jmp upped their price target on Global Medical REIT from $40.00 to $42.00 and gave the stock a "market outperform" rating in a research note on Tuesday, May 26th. Two analysts have rated the stock with a Buy rating and six have assigned a Hold rating to the stock. According to MarketBeat, the stock presently has a consensus rating of "Hold" and an average price target of $40.25.

Global Medical REIT Trading Down 1.0%

The company has a quick ratio of 0.59, a current ratio of 0.59 and a debt-to-equity ratio of 1.37. The company's fifty day moving average price is $36.80 and its two-hundred day moving average price is $35.93. The firm has a market cap of $482.86 million, a PE ratio of 9.80 and a beta of 1.09.

Global Medical REIT (NYSE:XRN - Get Free Report) last posted its quarterly earnings results on Wednesday, August 5th. The company reported $4.78 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.83 by $3.95. The firm had revenue of $39.75 million during the quarter. Global Medical REIT had a net margin of 36.82% and a return on equity of 13.31%. As a group, sell-side analysts forecast that Global Medical REIT Inc. will post 2.89 earnings per share for the current fiscal year.

Global Medical REIT Announces Dividend

The firm also recently announced a monthly dividend, which will be paid on Friday, December 18th. Stockholders of record on Friday, November 20th will be paid a dividend of $0.16 per share. This represents a c) dividend on an annualized basis and a dividend yield of 5.3%. The ex-dividend date of this dividend is Friday, November 20th. Global Medical REIT's dividend payout ratio is 51.61%.

Insider Activity

In other Global Medical REIT news, CEO Mark Okey Decker, Jr. purchased 6,875 shares of the firm's stock in a transaction that occurred on Tuesday, August 11th. The shares were purchased at an average cost of $35.92 per share, for a total transaction of $246,950.00. Following the completion of the purchase, the chief executive officer directly owned 75,199 shares in the company, valued at $2,701,148.08. This represents a 10.06% increase in their ownership of the stock. The acquisition was disclosed in a document filed with the Securities & Exchange Commission, which is available through this hyperlink. Also, Director Charles Fitzgerald purchased 14,000 shares of the firm's stock in a transaction that occurred on Tuesday, August 11th. The stock was acquired at an average price of $35.78 per share, for a total transaction of $500,920.00. Following the completion of the purchase, the director owned 138,893 shares of the company's stock, valued at approximately $4,969,591.54. This represents a 11.21% increase in their ownership of the stock. The SEC filing for this purchase provides additional information. Insiders acquired 71,525 shares of company stock valued at $2,579,304 in the last three months. 8.90% of the stock is currently owned by company insiders.

Institutional Investors Weigh In On Global Medical REIT

Several institutional investors have recently made changes to their positions in XRN. Invesco Ltd. increased its holdings in shares of Global Medical REIT by 30.5% in the 2nd quarter. Invesco Ltd. now owns 1,518,668 shares of the company's stock valued at $10,524,000 after purchasing an additional 355,355 shares in the last quarter. Alyeska Investment Group L.P. acquired a new stake in shares of Global Medical REIT in the third quarter valued at about $9,997,000. Marshall Wace LLP boosted its holdings in Global Medical REIT by 2,208.2% during the second quarter. Marshall Wace LLP now owns 291,708 shares of the company's stock worth $2,022,000 after buying an additional 279,070 shares in the last quarter. Heartland Advisors Inc. boosted its holdings in Global Medical REIT by 177.4% during the fourth quarter. Heartland Advisors Inc. now owns 423,460 shares of the company's stock worth $14,288,000 after buying an additional 270,786 shares in the last quarter. Finally, Hotchkis & Wiley Capital Management LLC acquired a new position in Global Medical REIT during the third quarter worth about $7,798,000. 57.52% of the stock is currently owned by hedge funds and other institutional investors.

About Global Medical REIT

Global Medical REIT NYSE: GMRE is a real estate investment trust focused on owning and managing healthcare-related properties across the United States. The company acquires, develops and leases a diversified portfolio of medical office buildings, outpatient facilities, long-term care centers and other specialized healthcare real estate. By concentrating on essential healthcare assets, Global Medical REIT seeks to generate stable, long-term rental income under triple-net and modified gross lease structures.

Since its incorporation in 2016 and initial public offering in 2017, the company has pursued an acquisitive growth strategy targeting markets with strong demographic trends and limited supply of modern medical facilities.

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