Wall Street’s most bullish Omega Healthcare Investors, Inc. (NYSE:OHI) analysts are predicting the share price to blow past $40 per share during the next 12 months. The current median share price forecast by them is $36, suggesting that the stock could increase -1.88% in that time frame. The average price target of $35.67 calls for a nearly -2.78% increase in the stock price.
Omega Healthcare Investors, Inc. (NYSE:OHI) rose 0.19% in recent trade and currently has a stock-market value of $7.55B. The shares finished at $36.69, after trading as low as $36.52 earlier in the session. It hit an intraday high Thursday at $36.8. Trading activity significantly weakened as the volume at ready counter decreased to 1,562,167 shares versus 2,030,615 in average daily trading volume over the past 20 days. So far this year, the volume has averaged about 1,924,706 shares. The stock is now 45.94% above against its bear-market low of $25.14 on April 27, 2018. It has retreated -9.84% since it’s 52-week high of $40.3 reached in February. Now the market price is up 34.4% on the year and up 4.38% YTD.
OHI stock’s 50 day simple moving average (SMA 50) price is $37.09 and its 200-day simple moving average (SMA 200) price is $33.94. The company’s stock currently has a total float of 200.98M shares. Its weekly volatility is hovering around 1.32% and felt 1.84% volatility in price over a month. On the upside, the share price will test short term resistance at around $36.82. On a downside, the stock is likely to find some support, which begins at $36.54. The failure to get near-term support could push it to $36.39.
It had seen a negative analyst call from Stifel, which downgraded the stock from Buy to Hold on February 07. Analysts at Stifel, shed their negative views on November 29 by lifting it fromHold to Buy. The stock won favor of Raymond James analysts who expressed their confidence in it using an upgrade from Mkt Perform to Outperform on November 16. BofA/Merrill analysts came out with bullish views on November 16 when the call was made. They think the stock is now Neutral compared to to their prior call for Underperform.
When looking at valuations, Omega Healthcare Investors, Inc. (OHI) has a cheap P/E of 27.3x as compared to industry average of 45.61x. Moreover, it trades for 20.33 times the next 12 months of expected earnings. Also, it is trading at rather expensive levels at just over 2.15x price/book and 8.56x price/sales. Compared to others, Omega Healthcare Investors, Inc. is in a different league with regards to profitability, having net margins of 31.9%. To put some perspective around this, the industry’s average net margin is 36.45%. OHI’s ROE is 8.1%, which is also considerably worse than the industry’s ROE of 14.64%.
Shares of OHI have dropped -6.7% since the company’s most recent earnings report. Over the past 12 fiscal quarters, Omega Healthcare Investors, Inc. (NYSE:OHI) has topped consensus earnings estimates in 0 quarters (0%), missed earnings in 12 quarters (100%), whereas at 0 occasion EPS met analyst expectations. Revenue for the recent quarter stood at $219.75 million, down -1% on last year and below the $223.41 million predicted by analysts. For this quarter, Wall Street analysts forecast revenue in a range of $219.94 million to $225 million, which should be compared with $221.85 million generated last year. EPS is seen in a range of $0.36 to $0.42, against the 0 reported a year ago.
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