How Omega Healthcare Investors Inc. (OHI) Works From A Technical Perspective


Omega Healthcare Investors Inc. (NYSE:OHI) finished Wednesday with a subtraction of -$0.24 to close at $31.52, a downside of -0.76 percent. An average of 2,569,000 shares of common stock have been traded in the last five days. There was a gain of $1.21 in the past week, and it reached a new high 9 times over the past 12 months. The last 20 days have seen an average of 1,697,565 shares traded, while the 50-day average volume stands at 1,754,210.

OHI stock has decreased by -3.87% in the last month. The company shares reached their 1-month lowest point of $29.90 on 09/14/22. With the stock rallying to its 52-week high on 08/12/22, shares of the company touched a low of $24.81 and a high of $33.71 in 52 weeks. It has reached a new high 16 times so far this year and achieved 6.52% or $1.93 in price. In spite of this, the price is down -6.50% from the 52-week high.

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Valuation Metrics

Omega Healthcare Investors Inc. (OHI) has a trailing price-to-earnings (P/E) ratio of 17.21. The stock’s beta is 0.94. Other valuation ratios to consider include the trailing price-to-sales (P/S) ratio at 7.05, the price-to-book (PB) ratio at 1.99.

The company has a payout ratio of 141.80%. The company’s most recent quarterly dividend payment was $0.67 a share, without any change from last year. Its latest increase dividend $0.01 reported on Monday October 14 2019.

Financial Health

Further, the company has a long term debt to equity ratio of 1.42 and a total debt to equity ratio of 1.42 for the quarter ending June 29. Its gross profit as reported stood at $520.42 million compared to revenue of $1.06 billion.

For investors, determining the potential profitability of the investment also depends on the performance of the company’s management. In the past 12 months, Omega Healthcare Investors Inc.’s return on assets was 4.60%.

Earnings Surprise

For the three-month period that ended June 29, Omega Healthcare Investors Inc. had $711.59 million in cash and short-term investments compared to $377.82 million in total debt. In the quarter under review, the net income was down than the previous quarter. The company posted a net income of $89.47 million in the quarter, while revenues of $189.61 million were grew 5.53%. The analyst consensus anticipated Omega Healthcare Investors Inc.’s latest quarter earnings to come in at $0.37 per share, but it turned out to be $0.38, a 2.70% surprise. For the quarter, EBITDA amounted to $214.35 million. At the end of the quarter ending June 29, Omega Healthcare Investors Inc.’s stock balance sheet showed total debt was $5.31 billion. Shareholders own equity worth $234.11 million.

Technical Picture

From a technical analysis perspective, let’s take a brief look at Omega Healthcare Investors Inc. (OHI) price momentum. RSI 9-day as of the close on 21 September was 44.94%, suggesting the stock is Neutral, with historical volatility in this time frame at 35.97%.

As of today, OHI’s price is $31.30 +3.99% or $1.21 from its 5-day moving average. OHI is currently trading -2.99% lower than its 20-day SMA and +16.35% higher than its 100-day SMA. However, the stock’s current price level is +6.81% above the SMA50 and +14.12% above the SMA200.

The stochastic %K and %D were 54.06% and 46.44%, respectively, and the average true range (ATR) was 0.88. With the 14-day stochastic at 49.77% and the average true range at 0.81, the RSI (14) stands at 45.96%. The stock has reached 0.07 on the 9-day MACD Oscillator while the 14-day reading was at -0.19.

Analyst Ratings

BofA Securities upgraded Omega Healthcare Investors Inc. (NYSE: OHI) to a a Buy rating in its most recent analyst report. Previously, the stock was rated as an Underperform. The consensus rating for Omega Healthcare Investors Inc. (OHI) among analysts is Overweight. According to current brokerage recommendations, 0 brokerage firms advise that investors sell OHI, while 9 suggest investors hold. There are 0 analysts who rate the stock as underweight. The stock is rated overweight by 2 analysts, while 3 others rate it as a “buy”.

What is OHI’s price target for the next 12 months?

Analysts predict a range of price targets between $28.00 and $36.00, with a median target of $34.00. Taking a look at these predictions, the average price target given by analysts for Omega Healthcare Investors Inc. (OHI) stock is $33.14.


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