The stock of Diversified Healthcare Trust (NASDAQ:DHC) is now priced at $3.8 and the shares are -0.1 points down or -2.69% lower compared to its previous closing price of $3.9. The stock had 2.006 million contracts set over the past session. DHC shares’ daily volume is compared to its average trading volume at 2.33 million shares. However, it has a float of 235 million and although its performance was -5% over the week, it’s one to watch. Analysts have given the DHC stock a yearly average price target of $3.9 per share. It means the stock’s upside potential is 2.63% with the DHC share price recently placing at $3.67 to $3.9. However, some brokerage firms have priced the stock below the average, including one that has called $2.75.
The shorts are running away from the Diversified Healthcare Trust stock, with the latest data on short interest released on August 14, 2020, showing that short interest numbers in the DHC shares have declined. Short interest in the stock represents just 6.89% of its float, but the volume has dropped by -2956337. The volume of shorted shares dropped to 16.19 million from 19.147 million shares over the last two weeks. The average intraday trading volume has been 1.36 million shares, which means that days to cover moved to roughly 11.903865.
In the last trading session, Diversified Healthcare Trust (NASDAQ:DHC) dropped by -$0.2 over the week and lost -$0.27 on its 20-day. The stock’s high in the recent session is lower when compared to its 52-week high of $10.21. The stock recorded its established 52-week high on 10/23/19.
Since 03/19/20, the stock has traded to a low of $2 at 90%, an encouraging piece of data likely to interest most investors out to exploit the stock’s recent surge. The stock has a beta allocation of 0.85. Being above 1 means that the stock’s volatility is higher than the market and traders are keenly watching it.
Looking at current readings, Diversified Healthcare Trust’s two-week RSI is 43.94. This suggests that the stock is neutral at the moment and that DHC shares’ price movement remains stable. The stochastic readings are equally revealing at 22.11% meaning the DHC share price is currently in overbought territory.
The technical chart shows that the DHC stock will likely settle at between $3.91 and $4.02 per share. However, if the stock dips below $3.68, then its market would become much weaker. Any downside could see the stock price sliding to levels as low as $3.56.
Currently, the stock is trading in the green of MACD, with a reading of 0.03. Investors always pay attention to any move above or below the zero-line, mainly because the indicator points to the position of the stock’s short-term average relative to its long-term measure. A MACD -a reading above the zero line means that the short-term is above the long-term average. This scenario implies that there is an upward momentum. The opposite is true when the MACD falls below the zero-line.
Analysts at Maxim Group assigned DHC a rating of Mkt Perform in their resuming review released on June 08. Wells Fargo analysts downgraded their recommendation of the stock from Overweight to Equal Weight while keeping its target price at $9 in a flash note released to investors on January 17.
The average rating for the DHC equity is 3.14 and is currently gathering a bearish momentum. Of 7 analysts tracking Diversified Healthcare Trust polled by Reuters, 4 rated DHC as a hold. The remaining 3 analysts were split evenly. However, the split wasn’t equal as a majority (1) rated it as a buy or strong buy. 2 analyst advised investors against buying the stock or to sell if they own any of the stock.
The stocks P/S ratio currently stands below the group’s average of 27.2. Diversified Healthcare Trust has its P/E ratio at 0.3, which means that the stock is currently trading at a discount relative to the 1.6 industry average.
Zacks Consensus Estimate forecasts that the current-quarter revenues for Diversified Healthcare Trust (NASDAQ:DHC) will decrease by about -99.9%, which will see them reach $404 million. The company’s full-year revenues are, however, expected to increase by about 59.62%, up from $1040 million to $1660 million. DHC’s expected adjusted earnings should drop almost -8.33% to end up at -$0.11 per share, while for the fiscal year, analysts project the company’s earnings to drop by about -29.73% to record -$0.26/share.