Omega Healthcare Investors, Inc. (OHI) Shares Decline Despite Market Challenges

Omega Healthcare Investors, Inc. (NYSE: OHI)’s stock price has dropped by -2.33 in relation to previous closing price of 31.82. Nevertheless, the company has seen a gain of 0.29% in its stock price over the last five trading days. Seeking Alpha reported 2024-03-27 that Healthcare REITs, like Omega Healthcare Investors, are attractive for passive income portfolios due to the long-term growth trend in the aging population. Omega Healthcare Investors provided AFFO guidance for 2024, suggesting that the dividend should be sustainable. Despite a narrower margin of dividend safety, Omega Healthcare Investors’ 9% yield remains a Buy for passive income investors.

Is It Worth Investing in Omega Healthcare Investors, Inc. (NYSE: OHI) Right Now?

Omega Healthcare Investors, Inc. (NYSE: OHI) has a higher price-to-earnings ratio of 31.58x compared to its average ratio. OHI has 36-month beta value of 0.90. Analysts have mixed views on the stock, with 1 analysts rating it as a “buy,” 0 as “overweight,” 8 as “hold,” and 2 as “sell.”

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The public float for OHI is 244.58M, and currently, short sellers hold a 5.31% ratio of that float. The average trading volume of OHI on April 03, 2024 was 1.87M shares.

OHI’s Market Performance

OHI’s stock has seen a 0.29% increase for the week, with a 0.26% rise in the past month and a 1.37% gain in the past quarter. The volatility ratio for the week is 1.71%, and the volatility levels for the past 30 days are at 1.58% for Omega Healthcare Investors, Inc.. The simple moving average for the past 20 days is 0.12% for OHI’s stock, with a -1.14% simple moving average for the past 200 days.

Analysts’ Opinion of OHI

Many brokerage firms have already submitted their reports for OHI stocks, with Citigroup repeating the rating for OHI by listing it as a “Buy.” The predicted price for OHI in the upcoming period, according to Citigroup is $35 based on the research report published on March 22, 2024 of the current year 2024.

Wells Fargo, on the other hand, stated in their research note that they expect to see OHI reach a price target of $35, previously predicting the price at $31. The rating they have provided for OHI stocks is “Overweight” according to the report published on February 26th, 2024.

Exane BNP Paribas gave a rating of “Neutral” to OHI, setting the target price at $30 in the report published on February 08th of the current year.

OHI Trading at 2.08% from the 50-Day Moving Average

After a stumble in the market that brought OHI to its low price for the period of the last 52 weeks, the company was unable to rebound, for now settling with -10.61% of loss for the given period.

Volatility was left at 1.58%, however, over the last 30 days, the volatility rate increased by 1.71%, as shares sank -1.30% for the moving average over the last 20 days. Over the last 50 days, in opposition, the stock is trading +4.72% upper at present.

During the last 5 trading sessions, OHI rose by +0.29%, which changed the moving average for the period of 200-days by -0.38% in comparison to the 20-day moving average, which settled at $31.02. In addition, Omega Healthcare Investors, Inc. saw 1.37% in overturn over a single year, with a tendency to cut further gains.

Stock Fundamentals for OHI

Current profitability levels for the company are sitting at:

  • 0.71 for the present operating margin
  • 0.95 for the gross margin

The net margin for Omega Healthcare Investors, Inc. stands at 0.25. The total capital return value is set at 0.08. Equity return is now at value 6.74, with 2.61 for asset returns.

Based on Omega Healthcare Investors, Inc. (OHI), the company’s capital structure generated 0.59 points at debt to capital in total, while cash flow to debt ratio is standing at 0.12. The debt to equity ratio resting at 1.42. The interest coverage ratio of the stock is 2.89.

Currently, EBITDA for the company is 828.95 million with net debt to EBITDA at 5.5. When we switch over and look at the enterprise to sales, we see a ratio of 12.9. The receivables turnover for the company is 0.55for trailing twelve months and the total asset turnover is 0.1.

Conclusion

To put it simply, Omega Healthcare Investors, Inc. (OHI) has had a better performance in recent times. Analysts have a mixed opinion on the stock, with some rating it as a “buy” and others as a “hold”. It is worth mentioning that the stock is currently trading in close proximity to its 50-day moving average and its 52-week high.

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