What Can We Expect After Welltower (NYSE:HCN)’s Downgrade By JP Morgan?

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Welltower (NYSE:HCN) Receives a Downgrade

In a recent report released today, JP Morgan cut shares of Welltower (NYSE:HCN) to a “Neutral” rating from the previous “Overweight” rating.

From a total of 17 analysts covering Health Care Reit Inc. (NYSE:HCN) stock, 10 rate it a ”Buy”, 1 a “Sell”, and 8 a ”Hold”. This means that 53% of the ratings are positive. The highest target price is $80 while the lowest target price is $65. The mean of all analyst targets is $72.88 with a 11.98% above today’s ($65.96) stock price. Health Care Reit Inc. was the topic of 9 analyst reports since July 21, 2015 according to the firm StockzIntelligence Inc. Mizuho downgraded shares on October 26 to “Neutral” rating. Canaccord Genuity maintained HCN stock in a recent report from August 25 with “Buy” rating.

Approximately 430,084 shares of stock traded hands. Welltower Inc (NYSE:HCN) has declined 6.90% since May 14, 2015 and is downtrending. It has underperformed by 4.64% the S&P500.

The overall sentiment of institutions has decreased to 0.05 in Q2 2015. Its down 1.02, from 1.07 in 2015Q2. The ratio worsened, as 512 institutions have sold all the shares of Welltower Inc that they owned while 18 funds have taken shares off the table. 4 funds have purchased shares for the first time while 22 added to their positions. These institutions now hold 22.19 million shares or 92.98% less than the 315.97 million shares they owned in 2015Q2.

The Fund Garland Capital Management Inc currently is holding shares equating to 3.06% of its total portfolio in Welltower Inc representing a total of 58,050 shares. Another fund,Trust Co Of Toledo Na Oh, is holding a total of 132,928 shares equating to 2.86% of their holdings. Additionally, Beacon Financial Group has a 106,192 share stake in Welltower Inc which represents 1.75% of their total portfolio. The Fund, Old Second National Bank Of Aurora, based out of Illinois, has also built up a stake in the stock, which represents a total of 1.09% of their total portfolio. Finally Liberty Capital Management Inc., a fund which is based in the state of Michigan reported a total holdings of 20,225 shares.

Insider activity is a very important aspect to track on any stock. Going back to March 9, 2015, shareholders of Welltower Inc have witnessed 0 buys, and a total of 4 sales equating to a net activity of approximately $2.47 million . Klipsch Fred S sold 33,021 shares worth approximately $2.11M. Ibele Erin C sold 2,104 shares worth approximately $147,280. Miller Jeffrey H sold 2,654 shares worth approximately $180,817. Herman Charles J Jr sold 1,000 shares worth approximately $67,770. The company insider Estes Scott A sold 3,831 shares worth $291,731.

Welltower Inc., formerly Health Care REIT, Inc., is a real estate investment trust . The company has a market cap of $23.52 billion. The Company’s portfolio has range of seniors housing and healthcare real estate, including seniors housing communities, nursing/post-acute facilities, medical office buildings, inpatient and outpatient medical centers and life science facilities. It has 44.23 P/E ratio. The Firm operates in three divisions: seniors housing triple-net, seniors housing operating and medical facilities.

According to Zacks Investment Research, “Welltower Inc. is a real estate investment trust. Its operating segment consists of seniors housing triple-net, seniors housing operating and medical facilities. The Company’s portfolio includes seniors housing communities, nursing/post-acute facilities, medical office buildings, inpatient and outpatient medical centers and life science facilities. Welltower Inc., formerly known as Health Care REIT, Inc., is headquarted in Toledo, Ohio.”

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