Omega Healthcare Investors (OHI) Downgraded to Sell at Zacks Investment Research

Zacks Investment Research cut shares of Omega Healthcare Investors (NYSE:OHI) from a hold rating to a sell rating in a report released on Tuesday.

According to Zacks, “Omega Healthcare Investors, Inc. was incorporated in the State of Maryland. It is a self-administered real estate investment trust (REIT), investing in income producing healthcare facilities, principally long-term care facilities located in the United States (U.S.) and the United Kingdom (U.K.). The Company provide lease or mortgage financing to qualified operators of skilled nursing facilities (SNFs) and, to a lesser extent, assisted living facilities (ALFs), independent living facilities and rehabilitation and acute care facilities. It has historically financed investments through borrowings under its revolving credit facilities, private placements or public offerings of its debt and equity securities, the assumption of secured indebtedness, retention of cash flow, or a combination of these methods. “

Several other equities research analysts have also weighed in on OHI. ValuEngine lowered shares of Omega Healthcare Investors from a hold rating to a sell rating in a research note on Monday, June 11th. Wells Fargo & Co lowered shares of Omega Healthcare Investors from an outperform rating to a market perform rating in a research note on Monday, June 25th. They noted that the move was a valuation call. Cantor Fitzgerald reiterated a buy rating and set a $34.00 price objective on shares of Omega Healthcare Investors in a research note on Monday, August 6th. Stifel Nicolaus increased their price objective on shares of Omega Healthcare Investors from $27.00 to $30.00 and gave the stock a hold rating in a research note on Tuesday, August 7th. Finally, MED initiated coverage on shares of Omega Healthcare Investors in a research note on Tuesday, October 2nd. They set a neutral rating and a $31.00 price objective on the stock. They noted that the move was a valuation call. One equities research analyst has rated the stock with a sell rating, ten have issued a hold rating and two have issued a buy rating to the company. The company has a consensus rating of Hold and an average price target of $30.87.

OHI opened at $31.98 on Tuesday. The stock has a market cap of $6.57 billion, a P/E ratio of 9.78, a price-to-earnings-growth ratio of 5.51 and a beta of 0.29. Omega Healthcare Investors has a fifty-two week low of $24.90 and a fifty-two week high of $33.63. The company has a current ratio of 4.03, a quick ratio of 4.03 and a debt-to-equity ratio of 1.15.

Omega Healthcare Investors (NYSE:OHI) last released its quarterly earnings data on Friday, August 3rd. The real estate investment trust reported $0.75 earnings per share for the quarter, topping the consensus estimate of $0.73 by $0.02. The firm had revenue of $192.85 million for the quarter, compared to analyst estimates of $200.30 million. Omega Healthcare Investors had a net margin of 10.61% and a return on equity of 2.49%. Omega Healthcare Investors’s quarterly revenue was down .6% on a year-over-year basis. During the same quarter in the prior year, the business earned $0.87 earnings per share. Sell-side analysts predict that Omega Healthcare Investors will post 2.97 earnings per share for the current fiscal year.

Several large investors have recently made changes to their positions in OHI. Daiwa Securities Group Inc. increased its stake in shares of Omega Healthcare Investors by 43.9% in the second quarter. Daiwa Securities Group Inc. now owns 5,032,761 shares of the real estate investment trust’s stock valued at $156,015,000 after purchasing an additional 1,536,523 shares during the period. Scout Investments Inc. increased its stake in shares of Omega Healthcare Investors by 355.2% in the second quarter. Scout Investments Inc. now owns 1,130,335 shares of the real estate investment trust’s stock valued at $35,040,000 after purchasing an additional 882,039 shares during the period. Cornerstone Wealth Management LLC increased its stake in shares of Omega Healthcare Investors by 3,000.0% in the second quarter. Cornerstone Wealth Management LLC now owns 909,261 shares of the real estate investment trust’s stock valued at $29,331,000 after purchasing an additional 879,930 shares during the period. First Republic Investment Management Inc. increased its stake in shares of Omega Healthcare Investors by 2,344.6% in the second quarter. First Republic Investment Management Inc. now owns 881,585 shares of the real estate investment trust’s stock valued at $27,329,000 after purchasing an additional 845,523 shares during the period. Finally, Bank of New York Mellon Corp increased its stake in shares of Omega Healthcare Investors by 14.9% in the second quarter. Bank of New York Mellon Corp now owns 5,689,457 shares of the real estate investment trust’s stock valued at $176,373,000 after purchasing an additional 736,393 shares during the period. Institutional investors own 72.25% of the company’s stock.

About Omega Healthcare Investors

Omega is a real estate investment trust that invests in the long-term healthcare industry, primarily in skilled nursing and assisted living facilities. Its portfolio of assets is operated by a diverse group of healthcare companies, predominantly in a triple-net lease structure. The assets span all regions within the US, as well as in the UK.

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