Welltower (NYSE:WELL) Stock Falls 5.3% After Earnings Miss

Key Points

• Welltower shares fell roughly 5.3% after reported third-quarter GAAP EPS of $0.54 missed the $1.64 analyst consensus, despite revenue of $3.72 billion exceeding expectations and rising 38.4% year over year.
• Underlying operating performance was stronger: normalized FFO reached $1.67 per share, up 24.6% year over year, while portfolio same-store NOI increased 15.8% and senior-housing NOI rose 21%. The company also raised its 2026 outlook.
• Welltower declared a quarterly dividend of $0.85 per share, or $3.40 annualized, representing an approximately 1.5% yield; analysts remain generally positive, with a “Moderate Buy” consensus and an average price target of $255.86.

Welltower Inc. (NYSE:WELL - Get Free Report) fell 5.3% during trading on Tuesday after the company announced weaker than expected quarterly earnings. The company traded as low as $227.81 and last traded at $227.9050. 327,082 shares traded hands during trading, a decline of 89% from the average daily volume of 3,077,387 shares. The stock had previously closed at $240.61.

The real estate investment trust reported $0.54 earnings per share (EPS) for the quarter, missing analysts' consensus estimates of $1.64 by ($1.10). Welltower had a return on equity of 3.56% and a net margin of 12.15%. The business had revenue of $3.72 billion for the quarter, compared to analysts' expectations of $3.64 billion. During the same period in the prior year, the business posted $1.34 earnings per share. The business's quarterly revenue was up 38.4% compared to the same quarter last year.

Welltower Dividend Announcement

The firm also recently announced a quarterly dividend, which will be paid on Thursday, November 19th. Investors of record on Tuesday, November 10th will be given a dividend of $0.85 per share. The ex-dividend date is Tuesday, November 10th. This represents a $3.40 dividend on an annualized basis and a yield of 1.5%. Welltower's payout ratio is currently 155.96%.

Welltower News Roundup

Here are the key news stories impacting Welltower this week:

• Positive Sentiment: Third-quarter normalized funds from operations (FFO) reached $1.67 per share, ahead of the $1.64 consensus estimate and up 24.6% year over year. Revenue was $3.72 billion, also above expectations. Welltower Q3 FFO and Revenue Results
• Positive Sentiment: Welltower raised its 2026 outlook as investments in senior housing operating properties (SHOP) contributed to higher FFO expectations. Portfolio same-store net operating income increased 15.8%, while SHOP same-store NOI rose 21%, supported by higher occupancy and revenue per occupied room. Welltower Raises Outlook
• Positive Sentiment: The REIT reported $21.0 billion of pro rata gross investments completed or under contract year to date, including substantial senior-housing acquisitions. The expansion reinforces Welltower’s growth strategy and exposure to aging-population demand. Welltower Senior Housing Acquisitions
• Positive Sentiment: Welltower declared a quarterly dividend of $0.85 per share, equivalent to $3.40 annually and a yield of approximately 1.4%, payable November 19 to eligible shareholders. Welltower Dividend Declaration
• Neutral Sentiment: An Investing.com-cited target of $260.55 implies further upside from recent trading levels, but the target is only an analyst estimate and does not change Welltower’s fundamentals. Welltower Price Target
• Negative Sentiment: Reported GAAP earnings were $0.54 per diluted share, well below the $1.64 consensus estimate. Although FFO is the more important REIT performance measure, the large GAAP shortfall could limit the stock’s reaction to otherwise strong operating results. Welltower Third Quarter 2026 Results

Analyst Upgrades and Downgrades

WELL has been the topic of several analyst reports. Cantor Fitzgerald increased their price target on Welltower from $235.00 to $260.00 and gave the stock an "overweight" rating in a research report on Friday, July 31st. Jefferies Financial Group raised Welltower to a "strong-buy" rating in a report on Friday, September 25th. Evercore reissued an "outperform" rating and issued a $256.00 price objective (down from $260.00) on shares of Welltower in a report on Monday, September 21st. UBS Group upped their target price on Welltower from $249.00 to $271.00 and gave the stock a "buy" rating in a research note on Wednesday, July 8th. Finally, Barclays reduced their price target on Welltower from $259.00 to $246.00 and set an "equal weight" rating for the company in a research report on Tuesday, October 13th. Two investment analysts have rated the stock with a Strong Buy rating, fifteen have issued a Buy rating and three have assigned a Hold rating to the stock. Based on data from MarketBeat, the stock currently has an average rating of "Moderate Buy" and an average price target of $255.86.

Insider Buying and Selling

In other Welltower news, Director Andrew Gundlach acquired 5,000 shares of the company's stock in a transaction on Wednesday, August 26th. The shares were bought at an average cost of $242.06 per share, with a total value of $1,210,300.00. Following the completion of the acquisition, the director owned 30,000 shares in the company, valued at approximately $7,261,800. This trade represents a 20.00% increase in their ownership of the stock. The purchase was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. Purchased indirectly through two trusts. The transaction was executed in multiple trades at prices ranging from $241.59 to $242.59. The reported $242.06 price is the weighted-average purchase price. Insiders own 0.37% of the company's stock.

Institutional Inflows and Outflows

Large investors have recently made changes to their positions in the business. Oppenheimer & Co. Inc. increased its holdings in Welltower by 22.0% in the 3rd quarter. Oppenheimer & Co. Inc. now owns 21,492 shares of the real estate investment trust's stock worth $4,948,000 after acquiring an additional 3,873 shares in the last quarter. Center for Financial Planning Inc. purchased a new position in Welltower during the third quarter valued at $205,000. Park Avenue Securities LLC grew its position in shares of Welltower by 0.3% in the third quarter. Park Avenue Securities LLC now owns 21,832 shares of the real estate investment trust's stock valued at $5,027,000 after purchasing an additional 61 shares during the period. Verdence Capital Advisors LLC grew its position in shares of Welltower by 45.6% in the third quarter. Verdence Capital Advisors LLC now owns 2,136 shares of the real estate investment trust's stock valued at $492,000 after purchasing an additional 669 shares during the period. Finally, AGH Wealth Advisors LLC grew its position in shares of Welltower by 2.8% in the third quarter. AGH Wealth Advisors LLC now owns 2,467 shares of the real estate investment trust's stock valued at $568,000 after purchasing an additional 67 shares during the period. 94.80% of the stock is owned by institutional investors and hedge funds.

Welltower Stock Down 5.6%

The firm has a market cap of $163.74 billion, a PE ratio of 103.94, a PEG ratio of 1.15 and a beta of 0.75. The business's 50 day moving average price is $233.87 and its 200 day moving average price is $217.08. The company has a debt-to-equity ratio of 0.37, a current ratio of 3.16 and a quick ratio of 3.16.

About Welltower

Welltower Inc NYSE: WELL is a healthcare-focused real estate investment trust that owns, develops, and manages properties used to provide healthcare and related services. Its portfolio is centered on senior housing communities, outpatient medical facilities, and post-acute care properties, including assets operated by healthcare providers and senior living companies.

The company's senior housing investments support independent living, assisted living, and memory care services. Its outpatient medical properties accommodate physicians, clinics, and other healthcare providers, while its broader healthcare real estate portfolio is designed to serve demand for care delivered outside traditional hospitals.

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