A better buy-in window may exist right now for Diversified Healthcare Trust (DHC)

Diversified Healthcare Trust (NASDAQ: DHC) stock jumped 0.87% on Monday to $2.33 against a previous-day closing price of $2.31. With 1.67 million shares changed hands, the volume of the stock remained lighter than its average volume of 2.21 million shares. During the session, the REIT – Healthcare Facilities company that operates in wider Real Estate sector, reached to the highest price of $2.3500 whereas the lowest price it dropped to was $2.1900. The 52-week range on DHC shows that it touched its highest point at $3.30 and its lowest point at $0.61 during that stretch. It currently has a 1-year price target of $2.13. With its current market cap of 609.53 million, DHC has annualized dividend of $0.04 while the current yield stands at 1.72%. Beta for the stock currently stands at 1.87.

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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 DHC was up-trending over the past week, with a rise of 3.10%, but this was down by -14.96% over a month. Three-month performance dropped to -9.34% while six-month performance rose 45.62%. The stock gained 79.23% in the past year, while it has gained 260.24% so far this year. A look at the trailing 12-month EPS for DHC yields -1.14 with Next year EPS estimates of -0.83. For the next quarter, that number is -0.21. This implies an EPS growth rate of -109.00% for this year and 3.50% for next year. EPS is expected to grow by 3.20% annually over the next five years; however, over the past five years, the company experienced an annual growth rate of -16.10%.

Float and Shares Shorts:

At present, 238.68 million DHC shares are outstanding with a float of 215.68 million shares on hand for trading. On Aug 30, 2023, short shares totaled 5.33 million, which was 2.22% higher than short shares on Jul 30, 2023. In addition to Mr. Adam David Portnoy as the firm’s Managing Chair of the Board, Ms. Jennifer F. Francis serves as its Pres, CEO & Managing Trustee.

Institutional Ownership:

Through their ownership of 86.68% of DHC’s outstanding shares, institutional investors have majority control over the company. Other institutions hold 44.57% of DHC, in contrast to 29.74% held by mutual funds. Shares owned by individuals account for 10.15%. As the largest shareholder in DHC with 9.85% of the stake, The Vanguard Group, Inc. holds 23,625,609 shares worth 23,625,609. A second-largest stockholder of DHC, Flat Footed LLC, holds 23,487,000 shares, controlling over 9.80% of the firm’s shares. Charles Schwab Investment Managem is the third largest shareholder in DHC, holding 18,645,958 shares or 7.78% stake. With a 5.65% stake in DHC, the Schwab Fundamental US Small Compa is the largest stakeholder. A total of 13,540,141 shares are owned by the mutual fund manager. The Vanguard Total Stock Market ETF, which owns about 3.07% of DHC stock, is the second-largest Mutual Fund holder. It holds 7,363,201 shares valued at 19.99 million. Vanguard Real Estate Index Fund holds 2.93% of the stake in DHC, owning 7,013,687 shares worth 19.04 million.

An Overview of Recent Financials:

Understanding a company as a customer does not mean you will understand it as an investor. The wise investor uses quantitative research to analyze metrics such as revenue, net income, and earnings. In its fiscal quarter reported on Jun 29, 2023, DHC reported revenue of $313.03M and operating income of -$18.51M. The EBITDA in the recently reported quarter was $42.08M and diluted EPS was -$0.46.

Analysts Ratings:

Reading analyst opinions is an effective way to decide where to invest, and there are several opinions available for DHC since 0 analysts follow the stock currently. In the same way, a target price assigned to a stock can also reveal much about its potential. With DHC analysts setting a high price target of $4.50 and a low target of $0.90, the average target price over the next 12 months is $2.70. Based on these targets, DHC could surge 93.13% to reach the target high and fall by -61.37% to reach the target low. Reaching the average price target will result in a growth of 15.88% 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.

Dividends & Yield:

In terms of dividends, DHC has a current ratio of $0.04, which is $0.04 over the trailing 12-months, while a dividend of $0.44 is likely to be paid on average over the next five years. Dividend yield is another indicator that appeals to many investors, and DHC currently yields $1.72. In the past year, DHC’s dividend yield has been $1.72, but when looking at the stock over the past five years, its yield has been $6.3. Accordingly, DHC has a current buyback yield of $0.04. This was $0.04 for the TTM, and it was $0.04 for the past five years.

Summary of Insider Activity:

Insiders traded DHC stock several times over the past three months with 0 Buys and 0 Sells. In these transactions, 0 shares were bought while 0 shares were sold. The number of buy transactions has increased to 14 while that of sell transactions has risen to 3 over the past year. The total number of shares bought during that period was 10,841,285 while 39,381 shares were sold.

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