Diversified Healthcare Trust (NASDAQ:DHC) Shares Gap Up After Better-Than-Expected 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 traded.

The real estate investment trust reported $0.06 EPS 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 firm had revenue of $386.86 million for the quarter, compared to analyst estimates of $381.19 million.

Diversified Healthcare Trust Dividend Announcement

The company also recently announced a quarterly dividend, which will be paid on Thursday, May 15th. Stockholders of record on Tuesday, April 22nd will be paid a $0.01 dividend. The ex-dividend date is Tuesday, April 22nd. This represents a $0.04 annualized dividend and a dividend yield of 1.40%. Diversified Healthcare Trust’s dividend payout ratio (DPR) is presently -2.60%.

Wall Street Analysts Forecast Growth

A number of brokerages have commented on DHC. StockNews.com upgraded shares of Diversified Healthcare Trust from a “sell” rating to a “hold” rating in a report on Thursday, April 10th. B. Riley started coverage on Diversified Healthcare Trust in a research note on Thursday, April 3rd. They issued a “buy” rating and a $4.50 price target on the stock.

Institutional Trading of Diversified Healthcare Trust

A number of hedge funds have recently made changes to their positions in the stock. BlackBarn Capital Partners LP raised its stake in shares of Diversified Healthcare Trust by 41.8% in the 4th quarter. BlackBarn Capital Partners LP now owns 6,250,000 shares of the real estate investment trust’s stock valued at $14,375,000 after purchasing an additional 1,841,503 shares in the last quarter. Cibc World Markets Corp bought a new stake in Diversified Healthcare Trust in the fourth quarter valued at about $990,000. CastleKnight Management LP raised its stake in Diversified Healthcare Trust by 30.1% during the fourth quarter. CastleKnight Management LP now owns 1,845,842 shares of the real estate investment trust’s stock valued at $4,245,000 after buying an additional 427,400 shares in the last quarter. JPMorgan Chase & Co. lifted its holdings in Diversified Healthcare Trust by 42.8% during the 4th quarter. JPMorgan Chase & Co. now owns 1,233,790 shares of the real estate investment trust’s stock worth $2,838,000 after buying an additional 369,984 shares during the last quarter. Finally, Barclays PLC grew its position in shares of Diversified Healthcare Trust by 310.2% in the 3rd quarter. Barclays PLC now owns 324,514 shares of the real estate investment trust’s stock worth $1,360,000 after acquiring an additional 245,405 shares in the last quarter. Institutional investors and hedge funds own 75.98% of the company’s stock.

Diversified Healthcare Trust Stock Up 31.0 %

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 firm has a market capitalization of $688.73 million, a P/E ratio of -1.77 and a beta of 2.37. The stock has a fifty day moving average price of $2.40 and a two-hundred day moving average price of $2.51.

About Diversified Healthcare Trust

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.