Stock Price & Analysis

Analysis and Insights

To determine whether it’s a good time to buy or sell Healthcare Realty Trust (HR) stock, we need to analyze both technical and fundamental factors.

Fundamental Analysis:

Healthcare Realty Trust (HR) has faced recent challenges, including tenant bankruptcies and revenue losses, which have impacted its financial performance. Scotiabank lowered its price target for HR from $18 to $17, maintaining a Sector Perform rating, citing fiscal 2025 FFO guidance that slightly missed expectations. Despite these challenges, Q4 fiscal 2024 showed positive multi-tenant absorption results, aligning with management's expectations and indicating potential growth in same-store cash NOI for FY25.

The stock offers a high dividend yield of 7.33%, making it attractive for income-focused investors. However, recent analyst actions reflect mixed sentiments, with Wedbush downgrading the stock to Underperform and lowering the price target to $16. Other analysts, such as JP Morgan, have also downgraded HR, citing concerns about leadership changes and operational challenges.

Technical Analysis:

The stock is currently trading at $16.44, below its 50-day moving average of $16.72 and 200-day moving average of $17.14. The RSI is at 49.27, indicating a neutral position, while the MACD is slightly positive, suggesting some upward momentum.

Analyst Sentiment:

The analyst consensus is a Moderate Sell, with an average price target of $17.60, representing a 6.9% upside from current levels. Recent downgrades and mixed ratings suggest cautious sentiment among analysts.

{RATING:symbol=HR.N, type=0}

Conclusion:

Given the mixed operational results, recent analyst downgrades, and neutral technical indicators, it may be prudent to sell HR stock at this time. While the high dividend yield is attractive, the overall challenges and negative analyst sentiment outweigh the potential benefits. Consider holding or selling unless there are significant positive developments in the near term.

The price prediction for HR stock in 2025 is $16. This forecast aligns with analyst downgrades, including Wedbush lowering the target to $16 and Scotiabank reducing it to $17, citing missed FFO guidance and operational challenges. The stock's current price of $16.43 and bearish trends support this target.

The S1 support level for HR Stock is $16.2 ,The R1 resistant level for HR Stock is $17.13.

As of the end of day on 2025-03-14, the price of HR Stock was $16.64.

The target price for HR Stock according to analyst rating is 17.50, with the highest price target at 19.00 and the lowest at 16.00. Analysts have a Moderate Sell rating on HR Stock overall.

The market cap of HR is $5.8B.

Analysis and Insights

HR appears overvalued based on several key metrics and analyst sentiment.

1. Valuation Metrics:

   • P/E Ratio: 50.11, significantly higher than industry averages, indicating a premium valuation.
   • EV/EBITDA: 16.65, above peer averages, suggesting stretched valuations.
   • P/S Ratio: 6.83, reflecting a rich valuation relative to revenue.

2. Analyst Sentiment:

   • Multiple downgrades recently, including Wedbush (Neutral → Underperform) and JP Morgan (Overweight → Neutral), with price targets reduced.

3. Dividend Yield:

   • At 7.32%, it offers attractive income, but this may not justify the premium valuation.

4. Technical Analysis:

   • The stock is trading near its lower Bollinger Band, indicating potential oversold conditions, but the RSI (49.27) suggests it is not yet oversold.

Conclusion

HR's high valuation metrics and recent analyst downgrades suggest it may be overvalued. While the dividend yield is attractive, the stock's premium pricing and negative sentiment outweigh its appeal. Investors may want to wait for a correction or improved fundamentals before considering HR.

Healthcare Realty Trust Incorporated is a self-managed and self-administered real estate investment trust (REIT) that owns and operates medical outpatient buildings primarily located around hospital campuses. The Company selectively grows its portfolio through property acquisition and development. Its portfolio includes nearly 700 properties totaling over 40 million square feet concentrated in 15 growth markets. The Company engages in a broad spectrum of integrated services, including leasing, management, acquisition, financing, development, and redevelopment of such properties. It focuses on facilities primarily located on or near the campuses of acute care hospitals associated with health systems. The Company’s properties in high-growth markets with a broad tenant mix that includes over 30 physician specialties, as well as surgery, imaging, cancer, and diagnostic centers. The Company’s real estate portfolio is leased to a diverse tenant base.

Price Prediction for HR Stock by 2030

HR stock is predicted to reach $25.00 by 2030, driven by improving operational efficiency and sector growth. The stock is currently trading at $16.43 with a Fibonacci resistance level at $17.18, indicating moderate upside potential. Analysts maintain a $17.60 average price target, reflecting cautious optimism.

HR has a total of 584 employees.