Omega Healthcare Investors Inc. (NYSE: OHI) stock fell -2.15% on Friday to $31.36 against a previous-day closing price of $32.05. With 1.56 million shares changed hands, the volume of the stock remained lighter than its average volume of 2.3 million shares. During the session, the REIT – Healthcare Facilities company that operates in wider Real Estate sector, reached to the highest price of $32.17 whereas the lowest price it dropped to was $31.27. The 52-week range on OHI shows that it touched its highest point at $35.64 and its lowest point at $24.81 during that stretch. It currently has a 1-year price target of $30.20. With its current market cap of 7.42 billion, OHI has annualized dividend of $2.68 while the current yield stands at 8.55%. Beta for the stock currently stands at 0.98.
Price Performance and Earnings:
Stock performance is one of the indicators that investors use to determine whether they will profit from a stock. The price performance of OHI was down-trending over the past week, with a drop of -0.38%, but this was up by 9.50% over a month. Three-month performance surged to 8.36% while six-month performance rose 3.26%. The stock lost -9.96% in the past year, while it has gained 5.98% so far this year. A look at the trailing 12-month EPS for OHI yields 1.81 with Next year EPS estimates of 1.49. For the next quarter, that number is 0.37. This implies an EPS growth rate of 151.70% for this year and -19.07% for next year. EPS is expected to decline by -2.75% annually over the next five years; however, over the past five years, the company experienced an annual growth rate of -1.30%.
Float and Shares Shorts:
At present, 239.53 million OHI shares are outstanding with a float of 234.31 million shares on hand for trading. On Jul 14, 2022, short shares totaled 17.25 million, which was 7.33% higher than short shares on Jun 14, 2022. In addition to Mr. C. Taylor Pickett CPA as the firm’s CEO & Director, Mr. Robert O. Stephenson serves as its CFO, Treasurer & Assistant Sec.
Through their ownership of 67.98% of OHI’s outstanding shares, institutional investors have majority control over the company. Other institutions hold 39.13% of OHI, in contrast to 28.95% held by mutual funds. Shares owned by individuals account for 2.41%. As the largest shareholder in OHI with 14.61% of the stake, The Vanguard Group, Inc. holds 34,363,013 shares worth 34,363,013. A second-largest stockholder of OHI, BlackRock Fund Advisors, holds 22,233,072 shares, controlling over 9.45% of the firm’s shares. SSgA Funds Management, Inc. is the third largest shareholder in OHI, holding 13,300,467 shares or 5.66% stake. With a 4.68% stake in OHI, the Vanguard Real Estate Index Fund is the largest stakeholder. A total of 11,003,228 shares are owned by the mutual fund manager. The Vanguard Total Stock Market Index, which owns about 2.95% of OHI stock, is the second-largest Mutual Fund holder. It holds 6,927,342 shares valued at 195.28 million. iShares Core S&P Mid Cap ETF holds 2.88% of the stake in OHI, owning 6,779,599 shares worth 191.12 million.
Reading analyst opinions is an effective way to decide where to invest, and there are several opinions available for OHI since 16 analysts follow the stock currently. There are 2 analysts who recommend BUY ratings, while 0 suggest SELL ratings. Of the remaining analysts, 11 believe that the stock is worth HOLDING, 2 give it an OVERWEIGHT rating, and 1 thinks that it’s UNDERWEIGHT. In the same way, a target price assigned to a stock can also reveal much about its potential. With OHI analysts setting a high price target of $36.00 and a low target of $27.00, the average target price over the next 12 months is $31.00. Based on these targets, OHI could surge 14.8% to reach the target high and fall by -13.9% to reach the target low. Reaching the average price target will result in a decline of -1.15% from current levels.
EPS: Estimates vs Actual
It is also common to use earnings estimates to evaluate a firm’s growth potential and to determine trading strategy. OHI will report FY 2022 earnings on 02/08/2023. Analysts have provided yearly estimates in a range of $2.10 being high and $1.85 being low. For OHI, this leads to a yearly average estimate of $1.95. The earnings surprise of a firm occurs when the actual results change from the consensus earnings estimate. Omega Healthcare Investors Inc. surprised analysts by -$0.00 when it reported $0.38 EPS against a consensus estimate of $0.38. The surprise factor in the prior quarter was $0.46. Based on analyst estimates, the high estimate for the next quarter is $0.52 and the low estimate is $0.32. The average estimate for the next quarter is thus $0.40.
Summary of Insider Activity:
Insiders traded OHI stock several times over the past three months with 4 Buys and 1 Sells. In these transactions, 18,972 shares were bought while 475 shares were sold. The number of buy transactions has increased to 18 while that of sell transactions has risen to 9 over the past year. The total number of shares bought during that period was 181,392 while 102,185 shares were sold.