Welltower (NYSE:WELL) Stock Falls 5.3% After Earnings Miss

Welltower Inc. (NYSE:WELL)’s stock price dropped 5.3% during trading on Tuesday following a dissappointing earnings announcement. The company traded as low as $227.81 and last traded at $227.9050. 327,082 shares traded hands during mid-day trading, a decline of 89% from the average daily volume of 3,077,387 shares. The stock had previously closed at $240.61.

The real estate investment trust reported $0.54 EPS for the quarter, missing the consensus estimate of $1.64 by ($1.10). Welltower had a return on equity of 3.56% and a net margin of 12.15%. The firm had revenue of $3.72 billion for the quarter, compared to analysts’ expectations of $3.64 billion. During the same quarter last year, the firm posted $1.34 earnings per share. Welltower’s quarterly revenue was up 38.4% on a year-over-year basis.

Welltower Announces Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Thursday, November 19th. Investors of record on Tuesday, November 10th will be paid a $0.85 dividend. This represents a $3.40 annualized dividend and a yield of 1.5%. The ex-dividend date of this dividend is Tuesday, November 10th. Welltower’s dividend payout ratio is currently 155.96%.

Key Stories Impacting Welltower

Here are the key news stories impacting Welltower this week:

• Positive Sentiment: Third-quarter normalized funds from operations (FFO) reached $1.67 per share, ahead of the $1.64 consensus estimate and up 24.6% year over year. Revenue was $3.72 billion, also above expectations. Welltower Q3 FFO and Revenue Results
• Positive Sentiment: Welltower raised its 2026 outlook as investments in senior housing operating properties (SHOP) contributed to higher FFO expectations. Portfolio same-store net operating income increased 15.8%, while SHOP same-store NOI rose 21%, supported by higher occupancy and revenue per occupied room. Welltower Raises Outlook
• Positive Sentiment: The REIT reported $21.0 billion of pro rata gross investments completed or under contract year to date, including substantial senior-housing acquisitions. The expansion reinforces Welltower’s growth strategy and exposure to aging-population demand. Welltower Senior Housing Acquisitions
• Positive Sentiment: Welltower declared a quarterly dividend of $0.85 per share, equivalent to $3.40 annually and a yield of approximately 1.4%, payable November 19 to eligible shareholders. Welltower Dividend Declaration
• Neutral Sentiment: An Investing.com-cited target of $260.55 implies further upside from recent trading levels, but the target is only an analyst estimate and does not change Welltower’s fundamentals. Welltower Price Target
• Negative Sentiment: Reported GAAP earnings were $0.54 per diluted share, well below the $1.64 consensus estimate. Although FFO is the more important REIT performance measure, the large GAAP shortfall could limit the stock’s reaction to otherwise strong operating results. Welltower Third Quarter 2026 Results

Wall Street Analyst Weigh In

WELL has been the subject of a number of research reports. Cantor Fitzgerald upped their target price on shares of Welltower from $235.00 to $260.00 and gave the stock an “overweight” rating in a report on Friday, July 31st. BNP Paribas Exane increased their price objective on shares of Welltower from $238.00 to $272.00 and gave the company an “outperform” rating in a report on Tuesday, July 28th. Weiss Ratings raised shares of Welltower from a “hold (c+)” rating to a “buy (b-)” rating in a research note on Thursday, October 8th. Evercore reissued an “outperform” rating and issued a $256.00 target price (down from $260.00) on shares of Welltower in a research note on Monday, September 21st. Finally, Robert W. Baird boosted their target price on Welltower from $226.00 to $233.00 and gave the stock a “neutral” rating in a report on Wednesday, August 12th. Two investment analysts have rated the stock with a Strong Buy rating, fifteen have given a Buy rating and three have issued a Hold rating to the company. According to MarketBeat.com, the stock has an average rating of “Moderate Buy” and a consensus target price of $255.86.

Insiders Place Their Bets

In other news, Director Andrew Gundlach purchased 5,000 shares of the company’s stock in a transaction dated Wednesday, August 26th. The stock was acquired at an average price of $242.06 per share, with a total value of $1,210,300.00. Following the purchase, the director directly owned 30,000 shares in the company, valued at approximately $7,261,800. This represents a 20.00% increase in their position. The acquisition was disclosed in a filing with the SEC, which is available at the SEC website. Purchased indirectly through two trusts. The transaction was executed in multiple trades at prices ranging from $241.59 to $242.59. The reported $242.06 price is the weighted-average purchase price. 0.37% of the stock is owned by insiders.

Institutional Trading of Welltower

Institutional investors have recently made changes to their positions in the company. Dimensional Fund Advisors LP lifted its position in Welltower by 0.7% in the first quarter. Dimensional Fund Advisors LP now owns 8,345,022 shares of the real estate investment trust’s stock valued at $1,649,844,000 after buying an additional 57,938 shares during the last quarter. NewEdge Advisors LLC boosted its stake in Welltower by 13.0% during the second quarter. NewEdge Advisors LLC now owns 238,162 shares of the real estate investment trust’s stock worth $54,056,000 after buying an additional 27,345 shares during the period. Envestnet Asset Management Inc. boosted its stake in Welltower by 9.4% during the second quarter. Envestnet Asset Management Inc. now owns 916,367 shares of the real estate investment trust’s stock worth $207,986,000 after buying an additional 79,088 shares during the period. Swiss National Bank increased its position in shares of Welltower by 9.9% during the first quarter. Swiss National Bank now owns 2,014,200 shares of the real estate investment trust’s stock valued at $398,227,000 after acquiring an additional 181,400 shares during the last quarter. Finally, State Street Corp increased its position in shares of Welltower by 1.4% during the second quarter. State Street Corp now owns 42,138,810 shares of the real estate investment trust’s stock valued at $9,564,246,000 after acquiring an additional 578,033 shares during the last quarter. Hedge funds and other institutional investors own 94.80% of the company’s stock.

Welltower Stock Down 5.6%

The business’s 50 day moving average price is $233.87 and its 200-day moving average price is $217.08. The firm has a market capitalization of $163.74 billion, a PE ratio of 103.94, a P/E/G ratio of 1.15 and a beta of 0.75. The company has a debt-to-equity ratio of 0.37, a quick ratio of 3.16 and a current ratio of 3.16.

Welltower Company Profile

Welltower Inc (NYSE: WELL) is a healthcare-focused real estate investment trust that owns, develops, and manages properties used to provide healthcare and related services. Its portfolio is centered on senior housing communities, outpatient medical facilities, and post-acute care properties, including assets operated by healthcare providers and senior living companies.

The company’s senior housing investments support independent living, assisted living, and memory care services. Its outpatient medical properties accommodate physicians, clinics, and other healthcare providers, while its broader healthcare real estate portfolio is designed to serve demand for care delivered outside traditional hospitals.