Weakness Seen in Medical Properties Trust, Inc. (MPW): Stock Loses 3.9 Percent Today

Medical Properties Trust, Inc. (NYSE:MPW) could be one of the worst stocks that investors may not want to consider for their portfolio today as the company shares are trading 3.9% or 0.71 points down from last closing price of $18.2, reaching $17.49 at last check. Any clue why there is so much of action in the MPW stock? The share price has dropped in 3 of the last 5 days and is up 5.45% over the past week. It will be exciting to see whether the stock manages to continue decreasing or take a minor break for the next few days. The move came on weak volume too with far less shares changing hands than in a normal session. Trading activity as of this writing weakened by -11,000,000 shares, and in total 4.815 million shares valued at $84.219 million were seen changing hands compared with 15.837 million shares valued at $288.241 million recorded at the previous session. You should take into consideration that a falling volume on lower prices shows the bearish trend but this is an early indication which means that the MPW stock is near its bottom.

Medical Properties Trust, Inc. (MPW) shares have notched a 3-month gain of about 5.45%, but has still advanced 13.18% year to date. By comparison, the stock added 28.44% over the past 12 months, while it jumped 0.05% over the 1 month. The company’s market cap is around $7.26B, with its short interest ratio standing at 4.55%.

In the current trading session for MPW, the stock witnessed two major price actions, it rose to a high of $18.25 and was down as much as $17.47 at one point. The high recorded is very low when compared to their 52-week high which is $13.93. The 52-week high is now at -7.32 distance from current price. Their recent low of $18.92 represents a 25.88% recovery. This data is quite important for investors who look to benefit from the recent rise of the company’s stock. The price target currently for MPW is $19.06, this is above the recent high that the stock attained. Taking a look at the overall sentimental views of financial analysts, the trading pattern of this stock recently is very clear.

The stock of Medical Properties Trust, Inc. earned $2.72 per share in the trailing 12 months and has a P/E ratio of 6.43. You can compare it with that of similar companies in its industry to get a sense of whether the stock you’re looking to purchase is overvalued or undervalued. Its current price to earnings ratio is lower than the ones recorded by the industry which is 65.95 and lower compared to the sector’s average of 22.22. When the P/E ratio is low let’s say below 1.0, then the stock price is considered a good value. MPW also has P/S multiple of 9.18. This is smaller versus the 12 month P/S ratios of other companies in the same indutry. The peer average price to sales ratio is 12.3x.

The company recorded an interesting insider sale transaction by the Director on Jun 07, 2019. A Securities and Exchanges Commission filings show that Michael G Stewart sold a total of 6,830 MPW shares that day for a sum of around $126,150. The filings show that the insider now retains 224,615 shares, currently worth $3,928,516. Medical Properties Trust, Inc. (MPW) insiders have acquired no shares in the stock within the past three months. The total insider sales reported to the SEC in that time frame amounted to 6,830 shares. In total, individual insiders traded 6,830 shares in the business, which makes up 0.404% of 1,691,357 shares that were traded over a year. In the past 12 months, insiders have purchased 1,128,276 shares while the seller parted with 563,081 shares.

MPW‘s last price was up 1.5% as compared to the average trading price of 50 days recorded at $17.23 while enlarging the period to 200 trading days, the average closing price was $18.01. At present, there are 398.92 million in the total number of common shares owned by the public and among those 390.05 million shares have been available to trade. The percentage of shares being held by the company management was 1.3% while institutions stake was 83.3%. The company has generated positive returns on equity over the last 12 months (22.5%). It managed to keep its gross profit margin at 98.9% over the past 12 months.

When assessing the full upside of the MPW stock, there is another set of technicals that should be looked into and considered. Its -2.92% decline from moving average of $18.02 has brought about a negative sentiment when calculated over the last 20 days. The market has allocated a beta of 0.64 to the stock. With the beta been less than one, this implies that the company shares are theoretically less volatile than the market, something that the traders definitely are keeping an eye on.

Most of the analysts surveyed by Thomson/First Call think quite highly of Medical Properties Trust, Inc. — 4 analysts rate the stock as a buy with another 0 rating it strong buy. There are 4 analysts who maintain a hold rating for the stock, with 0 giving it a sell rating. Analysts arrived at a 12-month price target of $17.6429 on shares of Medical Properties Trust, Inc. (NYSE:MPW), which corresponds to 0.70% upside potential than its current market price of $17.49 and implies potential despite the recent drop in the price. However, their current target price has climbed from $17.25 a month ago and is up handily from the consensus target of $17.25 a quarter ago.

In the last five years, the EPS of the company has been roughly 36.7%. Though the percentage looks encouraging, extra tailwinds are emerging as looking out over a next 5-year period, with analysts estimating that their earnings will increase annually by 6.21%. The revenue of the company has risen at an average annualized rate of about 26.5 over the last five years. The company recently recorded a drop of -12%, but this figure is rather unattractive.

Let’s briefly check the hedge fund interest towards MPW stock. Bessemer Group Inc. added position in the company after it grew 597.5% or 433 shares of its common stock. The hedge fund now owns 3,020 shares worth $52,820, SEC documents show. Commonwealth Equity Services LLC shored up assets in the stock as 142492.8 shares have been purchased, increasing its stake by 4.1% to 148,335 shares which are currently valued at $2,594,379. In addition, Capital Impact Advisors LLC recently reported that it now owns 95,849 shares making a total of $1,676,399 based on the recent price. This refelects a change of -2.9% in their ownership.