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

Diversified Healthcare Trust (NASDAQ:DHC - Get Free Report)'s stock price gapped down prior to trading on Tuesday following a dissappointing earnings announcement. The stock had previously closed at $3.52, but opened at $3.33. Diversified Healthcare Trust shares last traded at $2.96, with a volume of 258,748 shares traded.

The real estate investment trust reported ($0.41) earnings per share (EPS) for the quarter, missing the consensus estimate of $0.05 by ($0.46). Diversified Healthcare Trust had a negative net margin of 24.14% and a negative return on equity of 15.36%. The company had revenue of $373.64 million for the quarter, compared to the consensus estimate of $376.80 million. During the same quarter in the prior year, the company posted $0.03 EPS.

Diversified Healthcare Trust Dividend Announcement

The business also recently announced a quarterly dividend, which will be paid on Thursday, November 14th. Shareholders of record on Monday, October 28th will be given a $0.01 dividend. This represents a $0.04 dividend on an annualized basis and a yield of 1.41%. The ex-dividend date is Monday, October 28th. Diversified Healthcare Trust's dividend payout ratio (DPR) is presently -2.48%.

Wall Street Analysts Forecast Growth

Several brokerages recently commented on DHC. StockNews.com lowered Diversified Healthcare Trust from a "hold" rating to a "sell" rating in a report on Saturday, August 31st. B. Riley boosted their price target on Diversified Healthcare Trust from $5.00 to $6.00 and gave the company a "buy" rating in a research note on Monday, August 5th. JMP Securities reiterated a "market perform" rating on shares of Diversified Healthcare Trust in a research note on Wednesday, August 21st. Finally, Royal Bank of Canada boosted their target price on shares of Diversified Healthcare Trust from $2.00 to $3.00 and gave the company an "underperform" rating in a research report on Monday, October 14th.

Institutional Inflows and Outflows

A number of hedge funds have recently made changes to their positions in DHC. GSA Capital Partners LLP bought a new stake in Diversified Healthcare Trust during the 3rd quarter worth approximately $648,000. Asset Management One Co. Ltd. raised its position in shares of Diversified Healthcare Trust by 2.8% during the 3rd quarter. Asset Management One Co. Ltd. now owns 325,171 shares of the real estate investment trust's stock valued at $1,362,000 after purchasing an additional 8,879 shares during the period. Sumitomo Mitsui DS Asset Management Company Ltd lifted its stake in shares of Diversified Healthcare Trust by 68.9% during the 3rd quarter. Sumitomo Mitsui DS Asset Management Company Ltd now owns 40,340 shares of the real estate investment trust's stock valued at $169,000 after buying an additional 16,456 shares in the last quarter. Creative Planning boosted its holdings in Diversified Healthcare Trust by 14.1% in the 3rd quarter. Creative Planning now owns 22,401 shares of the real estate investment trust's stock worth $94,000 after buying an additional 2,767 shares during the period. Finally, Inspire Investing LLC bought a new position in Diversified Healthcare Trust in the 3rd quarter worth $411,000. 75.98% of the stock is currently owned by institutional investors.

Diversified Healthcare Trust Price Performance

The stock has a 50 day simple moving average of $3.60 and a 200-day simple moving average of $3.13. The firm has a market cap of $680.83 million, a PE ratio of -1.76 and a beta of 2.23. The company has a current ratio of 11.63, a quick ratio of 11.63 and a debt-to-equity ratio of 1.36.

About Diversified Healthcare Trust

DHC is a real estate investment trust, or REIT, focused on owning high-quality healthcare properties located throughout the United States. DHC seeks diversification across the health services spectrum by care delivery and practice type, by scientific research disciplines and by property type and location.