Healthcare Realty Trust (NYSE: HR) has been downgraded from a hold to a sell rating by Wall Street Zen, according to a report released on Friday, October 30, 2023. This change reflects a shift in the outlook for the real estate investment trust, which specializes in medical office buildings and outpatient healthcare properties.
In recent weeks, several analysts have provided insights into the company’s performance. Weiss Ratings reaffirmed a “hold (c)” rating on December 29, 2023. Meanwhile, Cantor Fitzgerald initiated coverage on the stock with an “overweight” rating and a price target of $23.00, noted in a report on October 1, 2023. Additionally, Wells Fargo & Company raised its price target from $18.00 to $19.00 while maintaining an “equal weight” rating as of November 25, 2023.
Further adjustments came from Citigroup, which increased its price objective from $17.00 to $19.00 and assigned a “neutral” rating on November 12, 2023. Meanwhile, BTIG Research reissued a “buy” rating with a price target of $20.00 on September 29, 2023. Overall, three research analysts have given the stock a buy rating, while six have issued holds and one has assigned a sell rating.
Quarterly Earnings and Revenue Performance
Healthcare Realty Trust recently announced its quarterly earnings on October 30, 2023. The company reported earnings per share (EPS) of $0.41, surpassing analysts’ expectations of $0.40 by $0.01. Revenue for the quarter was $297.77 million, exceeding estimates of $291.10 million. Despite this positive performance, the company reported a negative return on equity of 7.32% and a net margin of 30.51%. Notably, the quarterly revenue represented a decline of 6.2% compared to the same period last year, when the company had an EPS of $0.39.
Looking ahead, Healthcare Realty Trust has set its fiscal year 2025 guidance at an EPS range of $1.590-$1.60. Analysts predict that the company will report an EPS of $1.59 for the current fiscal year.
Dividend Announcement and Institutional Trading Activity
On November 21, 2023, Healthcare Realty Trust declared a quarterly dividend of $0.24, which was paid to shareholders of record as of November 11, 2023. This dividend represents an annualized amount of $0.96 and a yield of 5.6%. The ex-dividend date was November 10, 2023. Currently, the company’s dividend payout ratio stands at -90.57%.
In terms of institutional trading, several hedge funds and other institutional investors have made adjustments to their positions in Healthcare Realty Trust. Notably, Dynamic Technology Lab Private Ltd acquired a new position worth $205,000 during the first quarter. Empowered Funds LLC also purchased a stake valued at approximately $202,000.
Wealth Enhancement Advisory Services LLC increased its holdings by 9.1% in the second quarter, now owning 55,854 shares valued at $889,000. Similarly, Park Avenue Securities LLC boosted its stake by 36.0%, now holding 22,419 shares worth $356,000. Additionally, GC Wealth Management RIA LLC raised its holdings by 5.8%, owning 26,102 shares valued at $414,000.
Healthcare Realty Trust, headquartered in Nashville, Tennessee, focuses on the ownership, acquisition, and management of outpatient medical facilities. The company operates primarily in key metropolitan markets across the United States, emphasizing long-term, triple-net leases to maintain stable income from a diversified tenant base.
