On May 17, 2023, Mercer Global Advisors Inc. ADV announced a significant increase in its stake in Welltower Inc. (NYSE:WELL), a reputed real estate investment trust known for its provision of health care infrastructure. According to the Securities and Exchange Commission (SEC) filings, the institutional investor now owns 27,717 shares of Welltower’s stock after adding an additional 3,278 shares during the fourth quarter. The total value of Mercer Global Advisors’ holdings now stands at $1,817,000.
Welltower recently announced its earnings results on May 2nd and reported an earnings per share (EPS) of $0.05 for the quarter that ended during the same period. This figure missed analysts’ consensus estimate of $0.82 by a wide margin ($0.77) and highlights concerns about growth prospects in this space. The company’s net margin is only 1.74%, which is bearish compared to what investors expect from popular growth stocks.
The return on equity stood at just 0.51%. However, it is important to note that the revenue stream generated by Welltower was healthy at $1.56 billion during Q4-22 despite missing analysts’ expectations marginally at $1.57 billion.
Welltower operates through three distinct segments – Seniors Housing Operating, Triple-net, and Outpatient Medical – with a focus on seniors housing communities across the country.
Sell-side analysts have forecasted that Welltower will post EPS figures amounting to $3.45 for the current fiscal year despite lower-than-expected returns so far in Q2 due to seasonal fluctuations that are common in this market segment.
In conclusion, while Mercer Global Advisors Inc.’s recent additions to their stake may reflect growing interest in healthcare-oriented REITs like Welltower amongst larger investors, industry experts remain cautious about growth prospects amid volatile market conditions that could create headwinds in the future. Investors should keep a close eye on any macroeconomic announcements to make informed decisions about the next quarterly earnings reports and beyond.
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Welltower, Inc.: A Growing Investment Opportunity for Seniors Housing and Healthcare Infrastructure
Welltower, Inc. is a real estate investment trust (REIT) that specializes in the investment of seniors housing operators, post-acute providers, and health systems. With a market cap of $38.53 billion, it operates through three segments: Seniors Housing Operating, Triple-net, and Outpatient Medical. The company’s stock recently opened at $77.53 on Wednesday, with institutional investors owning 95.78% of the company’s shares.
Recent reports show that large investors have modified their holdings in the company significantly: Phocas Financial Corp purchased new positions valued at $28,000 during the fourth quarter; Covestor Ltd lifted its position by 97.4%, acquiring an additional 147 shares worth $29,000 in Q1; CI Investments Inc lifted its position by 985.7%, acquiring an extra 552 shares worth $39,000 in Q3; McElhenny Sheffield Capital Management LLC also purchased new positions valued at approximately $39,000 during Q4; while Quent Capital LLC increased its holdings by over six-fold to own 723 shares worth $47,000 after acquiring an additional 623 shares in the fourth quarter.
Welltower’s quick ratio and current ratio are both at 2.04 while its debt-to-equity ratio stands at 0.71. Over the past year (May 2022-May 2023), Welltower’s stock has reached a high of $90.69 and a low of $56.50 over that same period.
The company also announced recently a quarterly dividend for shareholders with record on May 16th being paid on May23rd for which will receive dividends amounting to $0.61 per share represents an annualized yield of around three percent capped off by dividend payout ratios currently standing at over one thousand percent.
Regarding recent analyst reports on Welltower’s stock performance: Evercore ISI assigned an “outperform” rating from an “in-line” while raising its target price to $81.00 for the company in April last year. Analysts at StockNews.com, however, initiated coverage on shares of Welltower in March 2023 with a “sell” rating. There was a recently upgraded target price by Royal Bank of Canada where it lifted Welltower’s target price from $82.00 to $87.00 in May 2023. While Wells Fargo & Company and Citigroup recommended an “overweight” or a “buy” rating respectively for the stock with respective target prices of $85.00 and $81.00.
Currently, based on data from Bloomberg.com, Welltower holds a consensus rating of “Moderate Buy.” Throughout the company’s recent growth, it has gained the attention and trust of numerous institutional investors seeking profitable positions in seniors’ housing communities powered by multiple stellar investor reports with updated analyses still being released regularly even as the business enjoys a position as one of the leading healthcare infrastructure providers in its area across America.
