Diversified Healthcare Trust (NASDAQ:DHC) Reaches New 1-Year High – Should You Buy?

Diversified Healthcare Trust (NASDAQ:DHC) shares reached a new 52-week high during mid-day trading on Thursday . The company traded as high as $6.85 and last traded at $6.81, with a volume of 2886043 shares changing hands. The stock had previously closed at $6.39.

Wall Street Analyst Weigh In

DHC has been the subject of a number of recent analyst reports. Royal Bank Of Canada raised shares of Diversified Healthcare Trust from an “underperform” rating to a “sector perform” rating and boosted their target price for the company from $3.00 to $5.00 in a research note on Thursday, November 13th. B. Riley Financial restated a “buy” rating and issued a $6.50 target price (up from $5.50) on shares of Diversified Healthcare Trust in a research note on Monday, December 15th. Weiss Ratings reaffirmed a “sell (d-)” rating on shares of Diversified Healthcare Trust in a research note on Wednesday, January 21st. Finally, Zacks Research upgraded Diversified Healthcare Trust from a “strong sell” rating to a “hold” rating in a report on Friday, February 20th. One investment analyst has rated the stock with a Buy rating, two have assigned a Hold rating and one has issued a Sell rating to the company. According to data from MarketBeat, the stock presently has a consensus rating of “Hold” and an average price target of $5.75.

Diversified Healthcare Trust Price Performance

The stock’s 50-day moving average is $5.75 and its 200 day moving average is $4.82. The company has a debt-to-equity ratio of 1.44, a current ratio of 2.36 and a quick ratio of 16.89. The company has a market cap of $1.64 billion, a PE ratio of -5.68 and a beta of 2.43.

Diversified Healthcare Trust (NASDAQ:DHC) last announced its earnings results on Monday, February 23rd. The real estate investment trust reported ($0.09) earnings per share (EPS) for the quarter, missing the consensus estimate of $0.12 by ($0.21). Diversified Healthcare Trust had a negative net margin of 18.59% and a negative return on equity of 15.98%. The business had revenue of $379.57 million for the quarter, compared to analyst estimates of $392.89 million.

Diversified Healthcare Trust Dividend Announcement

The company also recently disclosed a quarterly dividend, which was paid on Thursday, February 19th. Stockholders of record on Monday, January 26th were issued a $0.01 dividend. The ex-dividend date of this dividend was Monday, January 26th. This represents a $0.04 dividend on an annualized basis and a dividend yield of 0.6%. Diversified Healthcare Trust’s dividend payout ratio is currently -3.36%.

Insiders Place Their Bets

In other Diversified Healthcare Trust news, CEO Christopher J. Bilotto purchased 20,000 shares of Diversified Healthcare Trust stock in a transaction on Monday, December 15th. The stock was bought at an average cost of $4.89 per share, with a total value of $97,800.00. Following the transaction, the chief executive officer owned 266,285 shares of the company’s stock, valued at $1,302,133.65. This represents a 8.12% increase in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Company insiders own 1.37% of the company’s stock.

Institutional Trading of Diversified Healthcare Trust

Several hedge funds and other institutional investors have recently added to or reduced their stakes in the company. Prudential Financial Inc. lifted its position in shares of Diversified Healthcare Trust by 7.7% during the 2nd quarter. Prudential Financial Inc. now owns 2,129,197 shares of the real estate investment trust’s stock valued at $7,623,000 after buying an additional 151,479 shares in the last quarter. Allianz Asset Management GmbH increased its stake in shares of Diversified Healthcare Trust by 85.1% during the third quarter. Allianz Asset Management GmbH now owns 206,547 shares of the real estate investment trust’s stock worth $911,000 after purchasing an additional 94,937 shares in the last quarter. SG Americas Securities LLC lifted its stake in Diversified Healthcare Trust by 560.3% in the 3rd quarter. SG Americas Securities LLC now owns 244,211 shares of the real estate investment trust’s stock valued at $1,077,000 after buying an additional 207,225 shares in the last quarter. Arrowstreet Capital Limited Partnership boosted its holdings in Diversified Healthcare Trust by 22.3% in the 2nd quarter. Arrowstreet Capital Limited Partnership now owns 1,890,628 shares of the real estate investment trust’s stock worth $6,768,000 after buying an additional 345,110 shares during the last quarter. Finally, Centersquare Investment Management LLC purchased a new stake in Diversified Healthcare Trust during the 3rd quarter worth approximately $6,383,000. Institutional investors and hedge funds own 75.98% of the company’s stock.

About Diversified Healthcare Trust

Diversified Healthcare Trust is a real estate investment trust (REIT) specializing in the acquisition, ownership and management of healthcare properties across the United States. The company focuses on assets that serve the senior housing and post-acute care sectors, including skilled nursing facilities, assisted living communities, memory care centers and medical office buildings. By partnering with experienced operators, Diversified Healthcare Trust aims to generate stable, long-term cash flows through triple-net leases and percentage rent structures tailored to each property type.

The company’s portfolio spans multiple states and encompasses a mix of single-tenant and multi-tenant properties.