Medical Properties Trust (NYSE:MPT) Stock Falls 6.2% - Time to Sell?

Key Points

• Medical Properties Trust shares fell 6.2% to about $2.11, extending a sharp decline below both its 50-day and 200-day moving averages.
• Analyst sentiment is strongly negative: RBC downgraded the stock to “underperform” with a $2.00 price target, while Wells Fargo lowered its target to $3.80; the consensus rating is “Strong Sell.”
• The company missed quarterly earnings expectations, reporting $0.11 per share versus $0.13 expected, while maintaining a $0.09 quarterly dividend that implies a high 17.1% yield and an 87.8% payout ratio.

Shares of Medical Properties Trust, Inc. (NYSE:MPT - Get Free Report) dropped 6.2% during mid-day trading on Monday. The stock traded as low as $2.08 and last traded at $2.11. 6,322,658 shares traded hands during trading, a decline of 20% from the average session volume of 7,899,510 shares. The stock had previously closed at $2.25.

Analyst Ratings Changes

Several analysts have weighed in on the company. Royal Bank Of Canada lowered Medical Properties Trust from a "sector perform" rating to an "underperform" rating and lowered their target price for the company from $4.50 to $2.00 in a report on Friday. Weiss Ratings cut shares of Medical Properties Trust from a "sell (d+)" rating to a "sell (d)" rating in a research note on Tuesday, August 18th. Finally, Wells Fargo & Company cut their target price on shares of Medical Properties Trust from $5.00 to $3.80 and set an "underweight" rating for the company in a research report on Tuesday, September 1st. Three equities research analysts have rated the stock with a Sell rating. According to MarketBeat, the company currently has a consensus rating of "Strong Sell" and an average price target of $2.90.

Medical Properties Trust Trading Down 6.7%

The company has a quick ratio of 3.12, a current ratio of 3.92 and a debt-to-equity ratio of 2.00. The firm has a market cap of $1.25 billion, a price-to-earnings ratio of 5.12 and a beta of 1.45. The business has a 50 day moving average of $3.42 and a 200 day moving average of $4.35.

Medical Properties Trust (NYSE:MPT - Get Free Report) last announced its earnings results on Thursday, October 29th. The company reported $0.11 earnings per share for the quarter, missing the consensus estimate of $0.13 by ($0.02). The firm had revenue of $250.14 million during the quarter. Medical Properties Trust had a net margin of 24.14% and a return on equity of 5.45%. Medical Properties Trust's quarterly revenue was up 5.3% on a year-over-year basis. On average, research analysts forecast that Medical Properties Trust, Inc. will post 0.53 earnings per share for the current fiscal year.

Medical Properties Trust Dividend Announcement

The company also recently disclosed a quarterly dividend, which was paid on Thursday, October 8th. Stockholders of record on Thursday, September 10th were given a $0.09 dividend. This represents a $0.36 dividend on an annualized basis and a dividend yield of 17.1%. The ex-dividend date of this dividend was Thursday, September 10th. Medical Properties Trust's payout ratio is currently 87.80%.

Institutional Trading of Medical Properties Trust

Several hedge funds and other institutional investors have recently bought and sold shares of MPT. BlackRock Inc. acquired a new position in shares of Medical Properties Trust during the second quarter worth about $347,673,000. Corient Private Wealth LP purchased a new stake in shares of Medical Properties Trust in the second quarter worth about $3,670,000. Allianz Asset Management GmbH acquired a new stake in shares of Medical Properties Trust in the second quarter valued at about $33,903,000. State Street Corp acquired a new stake in shares of Medical Properties Trust in the second quarter valued at about $118,522,000. Finally, Envestnet Asset Management Inc. acquired a new stake in shares of Medical Properties Trust in the second quarter valued at about $1,596,000. 71.79% of the stock is owned by hedge funds and other institutional investors.

About Medical Properties Trust

Medical Properties Trust, Inc is a healthcare-focused real estate investment trust (REIT) that owns and invests in healthcare facilities. Its portfolio has historically included hospitals, inpatient rehabilitation facilities, long-term acute-care hospitals, behavioral health facilities and other properties used by healthcare providers.

Founded in 2003 and headquartered in Birmingham, Alabama, the company primarily generates income by leasing properties to healthcare operators under long-term agreements.

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