Wall Street Zen Downgrades Diversified Healthcare Trust (NASDAQ:DHC) to Sell

Key Points

• Wall Street Zen downgraded Diversified Healthcare Trust from hold to sell, adding to a mixed analyst picture on the stock.
• The broader analyst consensus remains Moderate Buy with a target price of $8.17, though recent ratings have ranged from strong buy to sell.
• The REIT recently reported Q1 earnings of -$0.18 per share, missing estimates, while revenue also came in below expectations at $366.47 million.

Diversified Healthcare Trust (NASDAQ:DHC - Get Free Report) was downgraded by stock analysts at Wall Street Zen from a "hold" rating to a "sell" rating in a research report issued to clients and investors on Saturday.

A number of other equities research analysts have also recently weighed in on the stock. B. Riley Financial lifted their price objective on shares of Diversified Healthcare Trust from $6.50 to $8.50 and gave the company a "buy" rating in a research note on Tuesday, March 3rd. Maxim Group set a $10.00 price objective on shares of Diversified Healthcare Trust in a research note on Wednesday. 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. Weiss Ratings restated a "sell (d-)" rating on shares of Diversified Healthcare Trust in a research note on Monday, April 20th. Finally, Freedom Capital upgraded shares of Diversified Healthcare Trust to a "strong-buy" rating in a research note on Thursday, April 30th. One research analyst has rated the stock with a Strong Buy rating, two have given a Buy rating, two have given a Hold rating and one has given a Sell rating to the company's stock. According to data from MarketBeat, Diversified Healthcare Trust currently has a consensus rating of "Moderate Buy" and a consensus target price of $8.17.

Diversified Healthcare Trust Stock Performance

DHC stock opened at $8.45 on Friday. The company has a debt-to-equity ratio of 1.48, a quick ratio of 2.36 and a current ratio of 5.36. The stock has a market capitalization of $2.05 billion, a price-to-earnings ratio of -6.35 and a beta of 2.33. Diversified Healthcare Trust has a 1 year low of $2.91 and a 1 year high of $8.48. The stock's fifty day moving average is $7.18 and its two-hundred day moving average is $5.86.

Diversified Healthcare Trust (NASDAQ:DHC - Get Free Report) last posted its earnings results on Monday, May 4th. The real estate investment trust reported ($0.18) earnings per share (EPS) for the quarter, missing analysts' consensus estimates of ($0.15) by ($0.03). Diversified Healthcare Trust had a negative net margin of 21.10% and a negative return on equity of 18.75%. The company had revenue of $366.47 million during the quarter, compared to the consensus estimate of $380.18 million. Diversified Healthcare Trust has set its FY 2026 guidance at 0.520-0.580 EPS. On average, research analysts predict that Diversified Healthcare Trust will post 0.57 EPS for the current year.

Institutional Investors Weigh In On Diversified Healthcare Trust

Hedge funds and other institutional investors have recently bought and sold shares of the business. Raymond James Financial Inc. bought a new stake in Diversified Healthcare Trust in the second quarter worth about $28,000. Summit Securities Group LLC bought a new stake in Diversified Healthcare Trust in the first quarter worth about $31,000. CWM LLC raised its position in 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 worth $32,000 after acquiring an additional 4,167 shares in the last quarter. KBC Group NV bought a new stake in Diversified Healthcare Trust in the first quarter worth about $35,000. Finally, Ground Swell Capital LLC bought a new stake in Diversified Healthcare Trust in the third quarter worth about $45,000. 75.98% of the stock is currently owned by institutional investors.

About Diversified Healthcare Trust

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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