Diversified Healthcare Trust (NASDAQ:DHC) revised its fiscal 2026 earnings guidance on Monday, providing a range of $0.52 to $0.58 per share. The projection falls short of the consensus estimate of $0.57 per share. The company did not issue revised revenue guidance for the period.
Shares of DHC declined $0.08 during Monday's midday trading, closing at $7.76 with trading volume of 2,255,874 shares, above the company's average daily volume of 1,917,895. The stock trades within a 52-week range of $2.15 to $7.96, with a current market capitalization of $1.88 billion.
The earnings update comes after the company reported first-quarter results on May 4th, when it posted earnings per share of negative $0.18, missing analyst expectations of negative $0.16 by $0.02. Revenue for the quarter reached $366.47 million, falling short of analyst estimates of $380.18 million. The company reported a negative net margin of 18.59% and a negative return on equity of 15.98%.
Analyst sentiment remains divided on the healthcare REIT's prospects. Royal Bank of Canada raised its price target from $5.00 to $6.00 while maintaining a "sector perform" rating. Zacks Research upgraded the stock from "strong sell" to "hold" on February 20th. B. Riley Financial lifted its price target to $8.50 with a "buy" rating, while Maxim Group initiated coverage with a "buy" rating and a $9.50 target price. Freedom Capital assigned a "strong-buy" rating. Overall, the stock carries a consensus "moderate buy" rating with an average price target of $8.00.
The company operates as a real estate investment trust focused on healthcare properties across the United States, including skilled nursing facilities, assisted living communities, memory care centers and medical office buildings. It generates revenue through triple-net leases and percentage rent structures with experienced property operators. Institutional investors currently hold 75.98% of outstanding shares, with several hedge funds increasing their positions during recent quarters, including Metis Global Partners LLC, Corient Private Wealth LLC, and Daiwa Securities Group Inc.
