Reviewing The Case For Omega Healthcare Investors Inc. (OHI) Going Higher

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SSgA Funds Management, Inc. recently announced the acquisition of new stake in Omega Healthcare Investors Inc. (NYSE:OHI). The institutional investor has increased its shareholding in the Real Estate company by 10.60% to 10.77 million shares with purchase of 1.03 million shares. This fresh investment now brings its stake to 4.75% valued currently at $320.23 million. In addition, Cohen & Steers Capital Management. raised its holdings by 2.68 million to 4.21 million shares. And Northern Trust Investments, Inc.(. has lifted its position by 3.21% or 0.1 million shares – to 3.35 million shares.

With over 1.16 million Omega Healthcare Investors Inc. (OHI) shares trading Tuesday and a closing price of $32.31 on the day, the dollar volume was approximately $37.57 million. The shares have shown a positive weekly performance of 7.06% and its price on 07/28/20 gained nearly 2.25%. Currently, there are 227.26M common shares owned by the public and among those 225.78M shares have been available to trade.

An analysis of what Wall Street brokers have to say about the expected price targets for this stock gives us this picture: 12 analysts who have offered their price forecasts for OHI have a consensus price objective of $31.82. The analysts have set the share’s price value over the next 12 months at a high of $36.00 and a low of $24.00 should the stock experience a downside. Incidentally, analysts’ outlook for the Omega Healthcare Investors Inc. stock is 2.60 for the next 12 months. The average price target is -1.54% below its last price level and a downside to the estimated low will see the stock lose -34.63% over that period. But an upside of 10.25% will see the stock hit the forecast high price target while mean target price for the stock is $32.00.

Insiders at the company have transacted a total of 34 times over the past 12 months, according to data filed with the U.S. Securities and Exchange Commission (SEC). 14 of these insider trades were purchases, accounting for 98,114 shares. Insider sales of the common stock occurred on 20 occasions, with total insider shares sold totaling 276,107 shares.

The top 3 mutual fund holders in Omega Healthcare Investors Inc. are Vanguard Real Estate Index Fund, Vanguard Total Stock Market Index, and iShares Core S&P Mid Cap ETF. Vanguard Real Estate Index Fund owns 10.16 million shares of the company’s stock, all valued at over $302.16 million. The company bought an additional 79834.0 shares recently to bring their total holdings to about 4.48% of the shares outstanding. Vanguard Total Stock Market Index bought 0.17 million shares to see its total holdings expand to 6.48 million shares valued at over $192.68 million and representing 2.86% of the shares outstanding. iShares Core S&P Mid Cap ETF now owns shares totaling to 2.68% of the shares outstanding.

Shares of Omega Healthcare Investors Inc. (NYSE: OHI) opened at $31.60, unchanged from a prior closing price of $31.60. However, the script later closed the day at $32.31, up 2.25%. The company’s stock has a 5-day price change of 7.06% and 15.60% over the past three months. OHI shares are trading -23.71% year to date (YTD), with the 12-month market performance down to -13.00% lower. It has a 12-month low price of $13.33 and touched a high of $45.22 over the same period. Currently, 1.16 million shares have been traded, compared to an average intraday trading volume of 2.55 million shares. The stock is trading above its simple moving averages at the SMA20, SMA50, and SMA200, as the current price level is off by 6.69%, 5.41%, and -9.98% respectively.

Institutional ownership of Omega Healthcare Investors Inc. (NYSE: OHI) shares accounts for 73.80% of the company’s 227.26M shares outstanding. Mutual fund holders own 32.31%, while other institutional holders and individual stakeholders account for 41.00% and 2.55% respectively.

It has a market capitalization of $7.46B and a beta (3y monthly) value of 0.85. The stock’s trailing 12-month PE ratio is 20.33, while the earnings-per-share (ttm) stands at $1.59. The company has a PEG of 1.29 and the debt-to-equity ratio at 1.37. Price movements for the stock have been influenced by the stock’s volatility, which stands at 3.77% over the week and 3.47% over the month.

Analysts forecast that Omega Healthcare Investors Inc. (OHI) will achieve an EPS of $0.39 for the current quarter, $0.38 for the next quarter and $1.58 for 2021. The lowest estimate earnings-per-share for the quarter is $0.3 while analysts give the company a high EPS estimate of $0.48. Comparatively, EPS for the current quarter was $0.34 a year ago. Earnings per share for the fiscal year are expected to increase by 14.40%, and 6.17% over the next financial year. EPS should grow at an annualized rate of 15.80% over the next five years, compared to -2.50% over the past 5-year period.

If you are looking to buy this stock, then you may note that the average analyst recommendation by 12 brokerage firm advisors rate Omega Healthcare Investors Inc. (OHI) as a “Moderate Buy” at a consensus score of 2.60. Specifically, 4 Wall Street analysts polled rate the stock as a buy, while 6 of the 12 advise that investors “hold,” and 0 rated it as a “Sell.”

Looking at the support for the OHI, a number of firms have released research notes about the stock. JMP Securities stated their Mkt Perform rating for the stock in a research note on June 08, 2020, with the firm’s price target at. Raymond James coverage for the Omega Healthcare Investors Inc. (OHI) stock in a research note released on May 15, 2020 offered a Strong Buy rating with a price target of $34. CapitalOne was of a view on May 05, 2020 that the stock is Overweight, while BofA/Merrill gave the stock Underperform rating on April 24, 2020, issuing a price target of $25- $23. Scotiabank on their part issued Sector Outperform rating on April 08, 2020.

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