Follow The Insiders And Other Key Signals: Welltower Inc. (WELL)

EVP, Investments Mitra Shankh acquired 62 shares in Welltower Inc. (NYSE:WELL) for $92,018 in transaction occurred on 2018/08/10. After making this transaction, the EVP, Investments owns a direct stake of 3,940 shares, worth $6,875,585, as per the last closing price. On 2018/06/06 Trumbull R Scott, Director at WELL, dumped 1 shares at an average price of $57.33 per share. The selling total is valued at $5,312,144.

Separately, it had been reported that some other WELL insiders also took part of the insider trading activity. Director, Whitelaw Gary had invested in 925 shares for $6,768 through a trade on 2018/05/01. Following this activity, the insider holds 50,117 shares worth $505,705 as of recent close. Wall Street’s most bullish Welltower Inc. (NYSE:WELL) analysts are predicting the share price to blow past $75 per share during the next 12 months. The current median share price forecast by them is $69, suggesting that the stock could increase -7.66% in that time frame. The average price target of $68.55 calls for a nearly -8.26% increase in the stock price.

Welltower Inc. (WELL) trading activity significantly improved as the volume at ready counter increased to 3,312,689 shares versus 1,947,855 in average daily trading volume over the past 20 days. So far this year, the volume has averaged about 2,330,431 shares. The share price rose 3.59% in recent trade and currently has a stock-market value of $27.72B. The shares finished at $74.72, after trading as low as $71.92 earlier in the session. It hit an intraday high Thursday at $74.75. The stock is now 50.71% above against its bear-market low of $49.58 on April 25, 2018. It has retreated -0.04% since it’s 52-week high of $74.75 reached in December. Now the market price is up 13.01% on the year and up 17.17% YTD.

WELL’s 50 day simple moving average (SMA 50) price is $66.84 and its 200-day simple moving average (SMA 200) price is $60.88. The company’s stock currently has a total float of 370.97M shares. Its weekly volatility is hovering around 2.24% and felt 1.87% volatility in price over a month. On the upside, the share price will test short term resistance at around $75.67. On a downside, the stock is likely to find some support, which begins at $72.84. The failure to get near-term support could push it to $70.97.

It had seen a new analyst call from Goldman, which initiated the stock at Neutral on August 06. Analysts at Raymond James, shed their negative views on May 21 by lifting it fromMkt Perform to Outperform. The stock won favor of BMO Capital Markets analysts who expressed their confidence in it using an upgrade from Underperform to Market Perform on May 18. Hilliard Lyons analysts came out with bullish views on April 27 when the call was made. They think the stock is now Neutral compared to to their prior call for Underperform.

When looking at valuations, Welltower Inc. (WELL) has a pricey P/E of 244.98x as compared to industry average of 47.22x. Moreover, it trades for 46.96 times the next 12 months of expected earnings. Also, it is trading at rather expensive levels at just over 2.05x price/book and 6.07x price/sales. Compared to others, Welltower Inc. is in a different league with regards to profitability, having net margins of 11.9%. To put some perspective around this, the industry’s average net margin is 35.6%. WELL’s ROE is 4%, which is also considerably worse than the industry’s ROE of 14.32%.

WELL last reported earnings on October 30, 2018 when it released Sep-18 results that exceeded expectations. The company raked in $1.04 per share, -55.93% change on the same period last year. That was better than consensus for $1.02. Revenue for the recent quarter stood at $1.24 billion, up 13% on last year and above the $1.17 billion predicted by analysts. For this quarter, Wall Street analysts forecast revenue in a range of $1.18 billion to $1.29 billion, which should be compared with $1.16 billion generated last year. EPS is seen in a range of $1.02 to $1.06, against the $1.1 reported a year ago.