why Diversified Healthcare Trust [DHC] is a Good Choice for Investors After New Price Target of $4.16

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Diversified Healthcare Trust [NASDAQ: DHC] gained 5.34% or 0.14 points to close at $2.76 with a heavy trading volume of 2426613 shares. The company report on December 29, 2021 that Diversified Healthcare Trust Announces Second Joint Venture Partner for Life Science Property Located in Boston Seaport District.

DHC Receives Proceeds of Approximately $378 Million in Exchange for 35% Equity Interest.


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Diversified Healthcare Trust (Nasdaq: DHC) today announced that it has entered into an agreement with a global institutional investor to acquire an equity interest in DHC’s existing joint venture that owns the two building life science complex located at 11 Fan Pier and 50 Northern Avenue in Boston, MA. The new investor will acquire from DHC a 35% equity interest in the joint venture for a purchase price of approximately $378 million, with the existing partner continuing to own a 45% equity interest and DHC owning the remaining 20% equity interest. The purchase price for the 35% equity interest is based on a property valuation of $1.7 billion, less the $620 million of existing secured debt on the property.

It opened the trading session at $2.65, the shares rose to $2.78 and dropped to $2.64, the range by which the price of stock traded the whole day. The daily chart for DHC points out that the company has recorded -33.97% loss over the past six months. However, it is still -17.45% lower than its most recent low trading price.

If we look at the average trading volume of 1.30M shares, DHC reached to a volume of 2426613 in the most recent trading day, which is why market watchdogs consider the stock to be active.

Here is what top equities market gurus are saying about Diversified Healthcare Trust [DHC]:

Based on careful and fact-backed analyses by Wall Street experts, the current consensus on the target price for DHC shares is $4.16 per share. Analysis on target price and performance of stocks is usually carefully studied by market experts, and the current Wall Street consensus on DHC stock is a recommendation set at 3.30. This rating represents a strong Buy recommendation, on the scale from 1 to 5, where 5 would mean strong sell, 4 represents Sell, 3 is Hold, and 2 indicates Buy.

Wells Fargo have made an estimate for Diversified Healthcare Trust shares, keeping their opinion on the stock as Underweight, with their previous recommendation back on December 10, 2020. While these analysts kept the previous recommendation, JMP Securities raised their target price to Mkt Perform. The new note on the price target was released on June 08, 2020, representing the official price target for Diversified Healthcare Trust stock. Previously, the target price had yet another raise to $9, while Wells Fargo analysts kept a Equal Weight rating on DHC stock.

The Average True Range (ATR) for Diversified Healthcare Trust is set at 0.15, with the Price to Sales ratio for DHC stock in the period of the last 12 months amounting to 0.46. The Price to Book ratio for the last quarter was 0.29, with the Price to Cash per share for the same quarter was set at 3.35.

Trading performance analysis for DHC stock

Diversified Healthcare Trust [DHC] gain into the green zone at the end of the last week, gaining into a positive trend and gaining by 4.15. With this latest performance, DHC shares dropped by -2.47% in over the last four-week period, additionally sinking by -33.97% over the last 6 months – not to mention a drop of -32.35% in the past year of trading.

Overbought and oversold stocks can be easily traced with the Relative Strength Index (RSI), where an RSI result of over 70 would be overbought, and any rate below 30 would indicate oversold conditions. An RSI rate of 50 would represent a neutral market momentum. The current RSI for DHC stock in for the last two-week period is set at 47.36, with the RSI for the last a single of trading hit 54.90, and the three-weeks RSI is set at 43.99 for Diversified Healthcare Trust [DHC]. The present Moving Average for the last 50 days of trading for this stock 3.16, while it was recorded at 2.67 for the last single week of trading, and 3.78 for the last 200 days.

Diversified Healthcare Trust [DHC]: A deeper dive into fundamental analysis

Operating Margin for any stock indicates how profitable investing would be, and Diversified Healthcare Trust [DHC] shares currently have an operating margin of -23.84 and a Gross Margin at -24.06. Diversified Healthcare Trust’s Net Margin is presently recorded at -11.48.

Return on Total Capital for DHC is now -4.58, given the latest momentum, and Return on Invested Capital for the company is -2.40. Return on Equity for this stock declined to -5.33, with Return on Assets sitting at -2.12. When it comes to the capital structure of this company, Diversified Healthcare Trust [DHC] has a Total Debt to Total Equity ratio set at 143.08. Additionally, DHC Total Debt to Total Capital is recorded at 58.86, with Total Debt to Total Assets ending up at 55.14. Long-Term Debt to Equity for the company is recorded at 130.93, with the Long-Term Debt to Total Capital now at 53.86.

Receivables Turnover for the company is 1,220.46 with a Total Asset Turnover recorded at a value of 0.18.

Diversified Healthcare Trust [DHC]: An earnings per share (EPS) analysis

The progress of the company may be observed through the prism of EPS growth rate, while Wall Street analysts are focusing on predicting the 5-year EPS growth rate for DHC. When it comes to the mentioned value, analysts are expecting to see the 5-year EPS growth rate for Diversified Healthcare Trust go to 3.20%.

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An analysis of insider ownership at Diversified Healthcare Trust [DHC]

There are presently around $495 million, or 80.20% of DHC stock, in the hands of institutional investors. The top three institutional holders of DHC stocks are: BLACKROCK INC. with ownership of 42,871,165, which is approximately -3.44% of the company’s market cap and around 0.10% of the total institutional ownership; VANGUARD GROUP INC, holding 36,442,897 shares of the stock with an approximate value of $95.48 million in DHC stocks shares; and STATE STREET CORP, currently with $33.94 million in DHC stock with ownership of nearly -0.796% of the company’s market capitalization.

Positions in Diversified Healthcare Trust stocks held by institutional investors increased at the end of November and at the time of the November reporting period, where 88 institutional holders increased their position in Diversified Healthcare Trust [NASDAQ:DHC] by around 12,195,906 shares. Additionally, 97 investors decreased positions by around 12,985,236 shares, while 60 investors held positions by with 163,623,289 shares. The mentioned changes placed institutional holdings at 188,804,431 shares, according to the latest SEC report filing. DHC stock had 24 new institutional investments in for a total of 1,290,970 shares, while 21 institutional investors sold positions of 1,869,433 shares during the same period.