Omega Healthcare Investors, Inc. (OHI) Is Volatile But There Is Opportunity

Some analysts have a lowest price target on Omega Healthcare Investors, Inc. (NYSE:OHI) of $31, which would mean a -15.51% gain in value. The closing share price quoted for March 14, 2019 was $36.69. The 0.19% rally might have been tempting for an investor to buy at this point and in fact that would prove a good idea, as sell-side analysts think there is almost 9.02% more gain yet to come for shareholders. Analysts seemed to set $40 as highest price target on its way to greater gains. The stock enjoyed an overall uptrend of 4.38% from the beginning of 2019. The average 12-month price target they expect from the stock is $35.67. This mean price target represents -2.78% downside over its previous closing price. The median price target they presented was $36 for the next 12-months, which suggests a -1.88% upside from current levels.

A fresh roundup today notes that OHI stock has added around 34.4% of its value in the past 12 months, suggesting more investors have expressed joy over about in that time period. If we turn to the Street in general, the positives still outweigh the negatives as we can see that Omega Healthcare Investors, Inc. (OHI), have a ,neutral (2.8) analyst consensus rating. In the current time, the stock has 2 buy and 8 hold ratings. The stock registered its 52-week high of $40.3 on February 01 and its 52-week low of $25.14 on April 27. Currently, the shares are trading $-0.4 below its YTD moving average of $37.09.

To help you decide whether it’s worth the wait (and the money), Omega Healthcare Investors, Inc. (NYSE:OHI) is currently trading at 27.3X the company’s trailing-12-month earnings per share, which represents a premium compared to the sector’s 19.22X and comes in below its industry’s 36.06X. The most popular method for valuing a stock is to study the historic Price-to-Earnings (P/E) ratio using reported earnings for the past 12 months. The EPS number for this stock in the most recent four quarters of earnings stood at $1.34. P/E ratio is so popular because it’s simple, it’s effective, and, tautologically, because everyone uses it.

The 14-day Absolute ATR (Average True Range) on Thursday, March 14 of 2019 shows that the price on average moves $0.67. The average daily volatility is 1.32% over the past week. Low volatility is good for the stock and it means we have calm and confident investors. If you check recent Omega Healthcare Investors, Inc. (OHI) volume, you will see that it has changed to 1.56 million shares versus the average daily volume of 1.95 million shares.

When you look at the daily chart for OHI, you will observe the stock held 10.88% gains in the 6-month period and maintains 45.94% distance from its most recent low. The past 5-day performance for the share stays positive at 1.92% but up 1.98% from its three-week moving average. Comparing to 50-day SMA, Omega Healthcare Investors, Inc. shares price is now down -1%. It also closed 8.2% lower from its 200-day SMA. This is often seen as the last line of defense for long term trends to find support at, else be considered broken and/or in a bear market. The daily chart of the stock more clearly reveals the slide in prices as it closed Thursday with a 1-month performance at -0.46%.