Brookdale Senior Living (NYSE:BKD) Hits New 1-Year Low - Here's What Happened

Brookdale Senior Living Inc. (NYSE:BKD) has reached a new 52-week low during trading sessions recently. On a Wednesday afternoon, the stock price dropped to $4.67 at its lowest point and was last seen at $4.77 after trading a volume of 565,055 shares. This fall marked a drop from its previous closing price of $4.87.

Recent Analyst Ratings

Recent comments from analysts provide insight into Brookdale's current standing. For instance, Macquarie has reiterated an "outperform" rating and maintained a price target of $8.00 for the shares of Brookdale Senior Living as reported on December 20th. Meanwhile, Bank of America has downgraded Brookdale from a "neutral" to an "underperform" rating, adjusting their target price from $7.75 to $6.00 as of October 7th. Jefferies Financial Group initiated coverage on Brookdale on October 16th, giving it a "buy" rating with a price target also set at $8.00. Similarly, the Royal Bank of Canada reaffirmed an "outperform" rating with an $8.00 price objective on the same day as Macquarie. Analysts are showing mixed sentiments as two investment analysts rated the stock as a sell, while three recommend a buy. Currently, market consensus indicates a rating of "Hold" with an average price target of $7.50 according to MarketBeat.com.

Stock Performance

Brookdale Senior Living's shares recently experienced a 2.5% decline. The company's market capitalization stands at approximately $922.34 million. The stock has a negative P/E ratio of -5.03 and a beta value of 1.31. Financial metrics show a debt-to-equity ratio of 14.46, with both current and quick ratios at 0.81. The stock's 50-day and 200-day moving averages are $5.16 and $6.14, respectively. The last earnings report released on November 6th revealed that Brookdale incurred a loss of $0.22 per share, which was below the expected loss of $0.16, indicating ongoing challenges. The company reported revenue of $784.17 million for the quarter, slightly below analysts' expectations of $785.61 million. Analysts project an EPS of -0.68 for the current fiscal year.

Insider Activities

In terms of insider activities, Director Lee S. Wielansky sold 10,000 shares of BKD on December 5th, at an average selling price of $5.62, amounting to a total of $56,200. This sale resulted in a 4.52% reduction in Wielansky's ownership, who now holds approximately 211,382 shares valued at around $1,187,966.84. Notably, insiders retain 1.80% ownership of the company.

Institutional Investments

Several institutional investors have modified their positions in Brookdale recently. Adelante Capital Management LLC purchased a new stake worth around $12 million during the third quarter. Rush Island Management LP increased its position by 31.9%, now holding 5,116,632 shares valued at $34,742,000 after acquiring an additional 1,237,727 shares. Similarly, Wellington Management Group LLP raised its stake by 11.4% to own 7,826,807 shares after purchasing an extra 799,744 shares. In the second quarter, the Healthcare of Ontario Pension Plan Trust Fund entered a new position valued at approximately $3.998 million. Lastly, Vision Capital Corp increased its stake by 27.8%, now commanding 1,838,440 shares worth $12,483,000.

About Brookdale Senior Living

Brookdale Senior Living Inc. specializes in owning, managing, and operating senior living communities across the United States. The operations are segmented into three categories: Independent Living, Assisted Living and Memory Care, and Continuing Care Retirement Communities (CCRCs). The Independent Living segment focuses on communities that cater primarily to middle to upper-income seniors.

Final Thoughts

As Brookdale Senior Living continues to face a tough market and stock price pressures, stakeholders and potential investors are left to ponder whether now is the time to hold or sell.

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