Shares of Community Healthcare Trust Incorporated (NYSE: CHCT) exceeded their fifty-day moving average during trading on October 31, 2023. The stock, which has a fifty-day moving average of $14.64, reached a peak of $15.82 before closing at $15.58 with a trading volume of 102,554 shares.
Analysts Weigh In on Stock Performance
Recent analyst activity has provided insights into the stock’s potential. Zacks Research upgraded Community Healthcare Trust from a “strong sell” to a “hold” rating in a note issued on the same day. Conversely, Weiss Ratings maintained a “sell (d+)” rating in a report released on October 8, 2023. Meanwhile, Truist Financial lowered its price target for the stock from $23.00 to $19.00 while still rating it as a “buy” on August 13, 2023. Piper Sandler reaffirmed an “overweight” rating on August 4, 2023. Currently, two analysts recommend a “buy,” one suggests a “hold,” and another advises a “sell,” leading to a consensus rating of “hold” with a price target of $18.00, according to MarketBeat.com.
Recent Earnings and Dividend Increase
Community Healthcare Trust disclosed its quarterly earnings on October 28, 2023, reporting earnings per share of $0.56. This figure surpassed the consensus estimate of $0.54 by $0.02. The company recorded revenue of $31.09 million, exceeding analyst expectations of $30.58 million. Despite these positive results, the firm reported a negative return on equity of 1.66% and a negative net margin of 6.27%. Analysts predict that Community Healthcare Trust will achieve earnings per share of $1.85 for the current fiscal year.
In addition, the company recently announced an increase in its quarterly dividend, which was paid on November 21, 2023. Shareholders on record as of November 7, 2023 received a dividend of $0.475 per share. This marks an increase from the previous quarterly dividend of $0.47, resulting in an annualized dividend of $1.90 and a yield of 12.2%. The ex-dividend date was also on November 7, 2023, and the company’s dividend payout ratio stands at an unusual -475.00%.
Insider Transactions and Institutional Holdings
In related news, Cathrine Cotman, a director of Community Healthcare Trust, purchased 4,000 shares on November 4, 2023, at an average price of $14.66 per share, totaling $58,640.00. This transaction increased her ownership stake in the company by 11.89%, bringing her total holdings to 37,635 shares, valued at approximately $551,729.10. Currently, corporate insiders own 5.10% of the stock.
Institutional ownership remains significant, with approximately 87.84% of shares held by institutional investors and hedge funds. Recently, Capital Square LLC increased its stake in the company by 2.9% during the second quarter, now holding 25,377 shares valued at $433,000. Resona Asset Management Co. Ltd. also raised its holdings by 8.2% in the first quarter, while M&G PLC and Versant Capital Management Inc. made similar increases in their positions during the third quarter.
Community Healthcare Trust, established on March 28, 2014, is a fully integrated healthcare real estate investment trust. The company specializes in owning and acquiring properties leased to hospitals, healthcare systems, and other service providers. As the market evolves, stakeholders and analysts will be closely monitoring the company’s performance and the impact of recent developments on its future trajectory.
