Diversified Healthcare Trust (NASDAQ:DHC) Shares Gap Up After Strong Earnings

Diversified Healthcare Trust (NASDAQ:DHC)’s stock price gapped up prior to trading on Tuesday following a better than expected earnings announcement. The stock had previously closed at $2.18, but opened at $2.40. Diversified Healthcare Trust shares last traded at $2.97, with a volume of 527,083 shares.

The real estate investment trust reported $0.06 earnings per share for the quarter, topping the consensus estimate of $0.04 by $0.02. Diversified Healthcare Trust had a negative return on equity of 17.55% and a negative net margin of 26.09%. The company had revenue of $386.86 million during the quarter, compared to the consensus estimate of $381.19 million.

Diversified Healthcare Trust Announces Dividend

The firm also recently declared a quarterly dividend, which will be paid on Thursday, May 15th. Investors of record on Tuesday, April 22nd will be paid a dividend of $0.01 per share. This represents a $0.04 dividend on an annualized basis and a dividend yield of 1.37%. The ex-dividend date is Tuesday, April 22nd. Diversified Healthcare Trust’s payout ratio is currently -2.60%.

Analyst Upgrades and Downgrades

DHC has been the topic of several recent research reports. StockNews.com upgraded Diversified Healthcare Trust from a “sell” rating to a “hold” rating in a research report on Thursday, April 10th. B. Riley initiated coverage on Diversified Healthcare Trust in a report on Thursday, April 3rd. They set a “buy” rating and a $4.50 target price for the company.

Institutional Investors Weigh In On Diversified Healthcare Trust

Several large investors have recently added to or reduced their stakes in the business. Allianz Asset Management GmbH purchased a new stake in shares of Diversified Healthcare Trust in the 1st quarter valued at about $298,000. Teacher Retirement System of Texas purchased a new stake in Diversified Healthcare Trust in the first quarter valued at approximately $59,000. Sumitomo Mitsui Trust Group Inc. lifted its position in Diversified Healthcare Trust by 16.7% during the first quarter. Sumitomo Mitsui Trust Group Inc. now owns 262,674 shares of the real estate investment trust’s stock valued at $630,000 after purchasing an additional 37,493 shares during the last quarter. Asset Management One Co. Ltd. grew its stake in Diversified Healthcare Trust by 2.5% in the 1st quarter. Asset Management One Co. Ltd. now owns 333,178 shares of the real estate investment trust’s stock worth $800,000 after buying an additional 8,007 shares in the last quarter. Finally, Abacus Planning Group Inc. bought a new position in shares of Diversified Healthcare Trust in the 1st quarter worth $92,000. Institutional investors own 75.98% of the company’s stock.

Diversified Healthcare Trust Stock Performance

The company has a debt-to-equity ratio of 1.44, a quick ratio of 11.57 and a current ratio of 11.57. The stock has a market cap of $703.20 million, a PE ratio of -1.81 and a beta of 2.37. The company’s 50-day moving average price is $2.40 and its two-hundred day moving average price is $2.50.

Diversified Healthcare Trust Company Profile

Diversified Healthcare Trust is a real estate investment trust, which engages in the ownership of senior living communities, medical office buildings, and wellness centers. It operates through the following segments: Office Portfolio, Senior Housing Operating Portfolio (SHOP), and Non-Segment. The Office Portfolio segment consists of medical office properties leased to medical providers and other medical related businesses, as well as life science properties leased to biotech laboratories and other similar tenants.