Diversified Healthcare Trust (NASDAQ:DHC) Shares Gap Down on Disappointing Earnings

Diversified Healthcare Trust (NASDAQ:DHC)’s stock price gapped down prior to trading on Tuesday after the company announced weaker than expected quarterly earnings. The stock had previously closed at $7.74, but opened at $7.09. Diversified Healthcare Trust shares last traded at $7.5350, with a volume of 194,085 shares.

The real estate investment trust reported ($0.21) EPS for the quarter, missing analysts’ consensus estimates of ($0.15) by ($0.06). Diversified Healthcare Trust had a negative return on equity of 16.22% and a negative net margin of 17.73%. The firm had revenue of $367.67 million during the quarter, compared to the consensus estimate of $370.87 million.

Diversified Healthcare Trust Dividend Announcement

The firm also recently declared a quarterly dividend, which will be paid on Thursday, November 12th. Shareholders of record on Monday, October 19th will be issued a $0.01 dividend. This represents a $0.04 annualized dividend and a yield of 0.5%. The ex-dividend date of this dividend is Monday, October 19th. Diversified Healthcare Trust’s payout ratio is -3.60%.

Wall Street Analyst Weigh In

Several research analysts have issued reports on the company. Weiss Ratings reiterated a “sell (d-)” rating on shares of Diversified Healthcare Trust in a research note on Thursday, October 15th. Wall Street Zen upgraded Diversified Healthcare Trust from a “sell” rating to a “hold” rating in a research report on Saturday, August 8th. One analyst has rated the stock with a Strong Buy rating, two have assigned a Buy rating, two have given a Hold rating and one has given a Sell rating to the stock. Based on data from MarketBeat, the company presently has an average rating of “Moderate Buy” and an average target price of $9.83.

Institutional Investors Weigh In On Diversified Healthcare Trust

A number of hedge funds and other institutional investors have recently made changes to their positions in the stock. Cim Investment Management Inc. boosted its position in shares of Diversified Healthcare Trust by 7.4% during the second quarter. Cim Investment Management Inc. now owns 50,105 shares of the real estate investment trust’s stock worth $466,000 after buying an additional 3,461 shares during the period. Sterling Capital Management LLC acquired a new position in shares of Diversified Healthcare Trust during the 3rd quarter worth about $34,000. Summit Securities Group LLC bought a new position in shares of Diversified Healthcare Trust in the 1st quarter valued at about $31,000. KBC Group NV bought a new position in shares of Diversified Healthcare Trust in the 1st quarter valued at about $35,000. Finally, Western Wealth Management LLC bought a new position in shares of Diversified Healthcare Trust in the 1st quarter valued at about $38,000. 75.98% of the stock is currently owned by institutional investors and hedge funds.

Diversified Healthcare Trust Trading Down 1.7%

The company has a debt-to-equity ratio of 1.52, a current ratio of 4.66 and a quick ratio of 4.67. The business has a 50-day moving average of $7.76 and a 200-day moving average of $7.76. The firm has a market cap of $1.84 billion, a price-to-earnings ratio of -6.85 and a beta of 2.29.

Diversified Healthcare Trust Company Profile

Diversified Healthcare Trust (NASDAQ: DHC) is a real estate investment trust that owns and manages healthcare-related properties in the United States. Its portfolio includes medical office buildings, life science and research facilities, senior living communities, and wellness-oriented properties.

The trust leases its properties to healthcare providers, research organizations, senior living operators, and other related businesses. Its medical office and life science properties support outpatient care, medical research, and healthcare innovation, while its senior living portfolio serves older adults through independent living, assisted living, and related care services.

DHC was formerly known as Senior Housing Properties Trust and adopted its current name in 2020 to reflect its broader healthcare real estate strategy.