Welltower (NYSE:WELL) Hits New 12-Month High on Strong Earnings

Key Points

• Welltower Inc. reported better-than-expected earnings, with a quarterly EPS of $1.28, surpassing the consensus estimate of $1.22, resulting in the stock reaching a new 52-week high of $165.87 during trading.
• The company announced a quarterly dividend increase from $0.67 to $0.74, with a yield of 1.81% and a dividend payout ratio of 154.02%.
• Welltower has recently seen mixed analyst ratings, with two firms downgrading the stock and others increasing their price targets, leading to an average rating of "Moderate Buy" and a target price of $168.18.

Welltower Inc. (NYSE:WELL - Get Free Report)'s stock price reached a new 52-week high on Tuesday following a stronger than expected earnings report. The stock traded as high as $165.87 and last traded at $164.06, with a volume of 889392 shares. The stock had previously closed at $158.29.

The real estate investment trust reported $1.28 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $1.22 by $0.06. Welltower had a return on equity of 3.38% and a net margin of 12.18%. The company had revenue of $2.55 billion during the quarter, compared to analysts' expectations of $2.49 billion. During the same quarter in the previous year, the business earned $1.05 EPS. Welltower's revenue was up 39.6% compared to the same quarter last year.

Welltower Increases Dividend

The company also recently announced a quarterly dividend, which will be paid on Thursday, August 21st. Shareholders of record on Tuesday, August 12th will be issued a $0.74 dividend. This represents a $2.96 annualized dividend and a dividend yield of 1.78%. This is a boost from Welltower's previous quarterly dividend of $0.67. The ex-dividend date is Tuesday, August 12th. Welltower's dividend payout ratio is currently 154.02%.

Analysts Set New Price Targets

WELL has been the subject of several research reports. Wall Street Zen cut Welltower from a "hold" rating to a "sell" rating in a report on Thursday, May 8th. Evercore ISI boosted their price target on Welltower from $162.00 to $175.00 and gave the stock an "in-line" rating in a research report on Wednesday. Morgan Stanley boosted their price target on Welltower from $155.00 to $160.00 and gave the stock an "overweight" rating in a research report on Tuesday, May 6th. Wells Fargo & Company boosted their price target on Welltower from $158.00 to $175.00 and gave the stock an "overweight" rating in a research report on Monday, June 2nd. Finally, Scotiabank reissued an "outperform" rating on shares of Welltower in a research report on Monday, June 23rd. Two equities research analysts have rated the stock with a sell rating, one has assigned a hold rating, eight have assigned a buy rating and two have issued a strong buy rating to the stock. According to MarketBeat, the stock has a consensus rating of "Moderate Buy" and a consensus target price of $169.82.

Insider Buying and Selling at Welltower

In other news, Director Andrew Gundlach acquired 20,000 shares of the business's stock in a transaction dated Monday, June 30th. The shares were acquired at an average cost of $151.46 per share, with a total value of $3,029,200.00. Following the completion of the acquisition, the director owned 20,000 shares of the company's stock, valued at approximately $3,029,200. This trade represents a ∞ increase in their ownership of the stock. The acquisition was disclosed in a document filed with the SEC, which is accessible through this link. Corporate insiders own 0.21% of the company's stock.

Institutional Trading of Welltower

Several hedge funds and other institutional investors have recently bought and sold shares of WELL. Beacon Financial Planning Inc. boosted its position in Welltower by 6.8% during the first quarter. Beacon Financial Planning Inc. now owns 27,893 shares of the real estate investment trust's stock worth $4,274,000 after purchasing an additional 1,780 shares in the last quarter. Summit Trail Advisors LLC boosted its position in Welltower by 61.4% during the first quarter. Summit Trail Advisors LLC now owns 6,756 shares of the real estate investment trust's stock worth $1,035,000 after purchasing an additional 2,571 shares in the last quarter. Groupama Asset Managment boosted its position in Welltower by 23,204.3% during the fourth quarter. Groupama Asset Managment now owns 1,900,000 shares of the real estate investment trust's stock worth $2,183,000 after purchasing an additional 1,891,847 shares in the last quarter. Wealth Enhancement Advisory Services LLC boosted its position in Welltower by 8.6% during the first quarter. Wealth Enhancement Advisory Services LLC now owns 131,503 shares of the real estate investment trust's stock worth $20,147,000 after purchasing an additional 10,423 shares in the last quarter. Finally, UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC boosted its position in Welltower by 10.3% during the fourth quarter. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC now owns 7,632,705 shares of the real estate investment trust's stock worth $961,950,000 after purchasing an additional 712,279 shares in the last quarter. 94.80% of the stock is owned by institutional investors and hedge funds.

Welltower Stock Up 0.2%

The company has a market cap of $108.78 billion, a PE ratio of 93.98, a P/E/G ratio of 1.90 and a beta of 0.92. The business has a 50-day simple moving average of $154.42 and a 200-day simple moving average of $148.50. The company has a quick ratio of 4.23, a current ratio of 4.19 and a debt-to-equity ratio of 0.48.

Welltower Company Profile

Welltower Inc NYSE: WELL, a real estate investment trust ("REIT") and S&P 500 company headquartered in Toledo, Ohio, is driving the transformation of health care infrastructure. Welltower invests with leading seniors housing operators, post-acute providers and health systems to fund the real estate infrastructure needed to scale innovative care delivery models and improve people's wellness and overall health care experience.