Stock Analysis

    Healthcare Realty Trust's (NYSE:HR) Shareholders Are Down 12% On Their Shares

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    Ideally, your overall portfolio should beat the market average. But the main game is to find enough winners to more than offset the losers At this point some shareholders may be questioning their investment in Healthcare Realty Trust Incorporated (NYSE:HR), since the last five years saw the share price fall 12%. It's up 2.0% in the last seven days.

    See our latest analysis for Healthcare Realty Trust

    To quote Buffett, 'Ships will sail around the world but the Flat Earth Society will flourish. There will continue to be wide discrepancies between price and value in the marketplace...' By comparing earnings per share (EPS) and share price changes over time, we can get a feel for how investor attitudes to a company have morphed over time.

    Healthcare Realty Trust became profitable within the last five years. Most would consider that to be a good thing, so it's counter-intuitive to see the share price declining. Other metrics may better explain the share price move.

    Revenue is actually up 5.0% over the time period. So it seems one might have to take closer look at the fundamentals to understand why the share price languishes. After all, there may be an opportunity.

    The company's revenue and earnings (over time) are depicted in the image below (click to see the exact numbers).

    earnings-and-revenue-growth
    NYSE:HR Earnings and Revenue Growth July 25th 2021

    We like that insiders have been buying shares in the last twelve months. Even so, future earnings will be far more important to whether current shareholders make money. So we recommend checking out this free report showing consensus forecasts

    What About Dividends?

    When looking at investment returns, it is important to consider the difference between total shareholder return (TSR) and share price return. The TSR incorporates the value of any spin-offs or discounted capital raisings, along with any dividends, based on the assumption that the dividends are reinvested. So for companies that pay a generous dividend, the TSR is often a lot higher than the share price return. We note that for Healthcare Realty Trust the TSR over the last 5 years was 7.1%, which is better than the share price return mentioned above. This is largely a result of its dividend payments!

    A Different Perspective

    Healthcare Realty Trust shareholders gained a total return of 14% during the year. But that return falls short of the market. The silver lining is that the gain was actually better than the average annual return of 1.4% per year over five year. This could indicate that the company is winning over new investors, as it pursues its strategy. While it is well worth considering the different impacts that market conditions can have on the share price, there are other factors that are even more important. Like risks, for instance. Every company has them, and we've spotted 4 warning signs for Healthcare Realty Trust (of which 2 can't be ignored!) you should know about.

    Healthcare Realty Trust is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.

    Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on US exchanges.

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