Investors Buy Large Volume of Call Options on Medical Properties Trust (NYSE:MPT)

by · The Markets Daily

Medical Properties Trust, Inc. (NYSE:MPT – Get Free Report) was the recipient of some unusual options trading activity on Friday. Investors purchased 58,435 call options on the company. This is an increase of 258% compared to the average volume of 16,316 call options.

Analyst Upgrades and Downgrades

A number of analysts have commented on MPT shares. Weiss Ratings cut shares of Medical Properties Trust from a “sell (d+)” rating to a “sell (d)” rating in a research report on Tuesday, August 18th. Royal Bank Of Canada downgraded Medical Properties Trust from a “sector perform” rating to an “underperform” rating and cut their price target for the company from $4.50 to $2.00 in a research note on Friday. Finally, Wells Fargo & Company reduced their price target on Medical Properties Trust from $5.00 to $3.80 and set an “underweight” rating on the stock in a research report on Tuesday, September 1st. Three equities research analysts have rated the stock with a Sell rating. According to data from MarketBeat.com, the stock presently has a consensus rating of “Strong Sell” and a consensus target price of $2.90.

View Our Latest Research Report on MPT

Medical Properties Trust News Summary

Here are the key news stories impacting Medical Properties Trust this week:

  • Positive Sentiment: Unusually heavy options activity provided a speculative bullish signal: traders purchased 58,435 MPT call options, roughly 258% above typical daily volume.
  • Positive Sentiment: Some investors remain optimistic that progress on asset sales could improve liquidity and reduce balance-sheet pressure. One analysis characterized the selloff as a potential buying opportunity, although this view is highly speculative. Medical Properties Trust’s Collapse Offers A Golden Buying Opportunity
  • Neutral Sentiment: Third-quarter revenue increased 5.3% year over year to $250.14 million, but the improvement was offset by profitability issues, including a negative net margin and negative return on equity. Medical Properties Trust Reports Third-Quarter Results
  • Negative Sentiment: MPT reported third-quarter normalized FFO of $0.11 per share, below the $0.13 consensus estimate and down from $0.13 a year earlier. The revenue and FFO misses increased concerns about the REIT’s operating performance. Medical Properties Q3 FFO and Revenues Miss Estimates
  • Negative Sentiment: Tenant troubles reportedly prevented payment of September rent, intensifying fears about cash flow, rent collection and the value of MPT’s healthcare properties. Medical Properties Trust Sinks as FFO Misses and Tenant Troubles
  • Negative Sentiment: RBC downgraded Medical Properties Trust to Underperform from Sector Perform and slashed its price target to $2 from $4.50, while retaining a speculative-risk designation. The downgrade reinforced bearish sentiment following the earnings report. RBC Downgrades Medical Properties Trust

Hedge Funds Weigh In On Medical Properties Trust

Several institutional investors and hedge funds have recently modified their holdings of MPT. BlackRock Inc. acquired a new stake in Medical Properties Trust in the second quarter valued at approximately $347,673,000. State Street Corp bought a new stake in shares of Medical Properties Trust in the 2nd quarter valued at $118,522,000. Allianz Asset Management GmbH acquired a new position in Medical Properties Trust in the second quarter valued at approximately $33,903,000. Advisors Capital Management LLC bought a new stake in shares of Medical Properties Trust during the second quarter valued at approximately $30,483,000. Finally, Bank of New York Mellon Corp purchased a new stake in shares of Medical Properties Trust in the second quarter worth approximately $28,285,000. 71.79% of the stock is currently owned by institutional investors and hedge funds.

Medical Properties Trust Stock Down 7.4%

Shares of NYSE:MPT traded down $0.18 during midday trading on Friday, reaching $2.26. 47,921,254 shares of the company were exchanged, compared to its average volume of 7,922,579. Medical Properties Trust has a fifty-two week low of $2.06 and a fifty-two week high of $6.47. The company has a quick ratio of 3.12, a current ratio of 3.12 and a debt-to-equity ratio of 2.16. The stock has a fifty day simple moving average of $3.42 and a two-hundred day simple moving average of $4.35. The firm has a market cap of $1.35 billion, a PE ratio of -37.67 and a beta of 1.45.

Medical Properties Trust (NYSE:MPT – Get Free Report) last announced its quarterly earnings data on Thursday, October 29th. The company reported $0.11 EPS for the quarter, missing analysts’ consensus estimates of $0.13 by ($0.02). The business had revenue of $250.14 million during the quarter. Medical Properties Trust had a negative return on equity of 0.66% and a negative net margin of 2.96%. The business’s revenue for the quarter was up 5.3% on a year-over-year basis. As a group, sell-side analysts forecast that Medical Properties Trust will post 0.53 earnings per share for the current year.

Medical Properties Trust Announces Dividend

The firm also recently declared a quarterly dividend, which was paid on Thursday, October 8th. Investors of record on Thursday, September 10th were issued a dividend of $0.09 per share. The ex-dividend date was Thursday, September 10th. This represents a $0.36 dividend on an annualized basis and a yield of 15.9%. Medical Properties Trust’s dividend payout ratio (DPR) is presently -600.00%.

Medical Properties Trust Company Profile

(Get Free Report)

Medical Properties Trust, Inc is a healthcare-focused real estate investment trust (REIT) that owns and invests in healthcare facilities. Its portfolio has historically included hospitals, inpatient rehabilitation facilities, long-term acute-care hospitals, behavioral health facilities and other properties used by healthcare providers.

Founded in 2003 and headquartered in Birmingham, Alabama, the company primarily generates income by leasing properties to healthcare operators under long-term agreements.

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