Brookdale Senior Living (NYSE:BKD) Hits New 52-Week Low - Should You Sell?

Brookdale Senior Living Inc. (NYSE:BKD) has hit a concerning new low, reaching $4.67 during mid-day trading on Wednesday. It later traded at $4.77 with a total volume of 565,055 shares exchanged, a drop from its previous close of $4.87.

Recent Analyst Opinions

Various analysts have recently expressed their views on Brookdale Senior Living. Macquarie reaffirmed an "outperform" rating and set a price target of $8.00 for the stock on December 20th. Conversely, Bank of America adjusted their recommendation from "neutral" to "underperform," lowering their target price from $7.75 to $6.00 as of October 7th. On October 16th, Jefferies Financial Group began covering Brookdale Senior Living with a "buy" rating and a price target of $8.00. Royal Bank of Canada also reaffirmed a positive outlook with an "outperform" rating and an $8.00 price objective on the same date as Macquarie. Overall, market sentiment remains mixed: two analysts rate the stock as a sell while three hold a buy rating. According to MarketBeat.com data, the average consensus rating for Brookdale is currently "Hold," with a consensus price target of $7.50.

Current Trading Performance

As of now, Brookdale Senior Living is trading down by about 2.5%. The company has a market capitalization of approximately $922.34 million, with a price-to-earnings ratio of -5.03 and a beta of 1.31. Its debt-to-equity ratio stands at 14.46, and both the current and quick ratios are at 0.81. The company's stock has a 50-day moving average of $5.16 and a 200-day moving average of $6.14.

Brookdale Senior Living released its quarterly earnings on November 6th, reporting an earnings per share figure of -$0.22, which fell short of analysts' estimates of -$0.16 by $0.06. The firm's net margin was negative at 6.75%, and its return on equity was also negative at 59.06%. The total revenue for the quarter was $784.17 million, just below the expected $785.61 million. Year-over-year, earnings per share remained unchanged at -$0.22. Analysts expect Brookdale Senior Living to report earnings per share of -$0.68 for the current financial year.

Insider Trading Activity

On December 5th, Director Lee S. Wielansky sold 10,000 shares of Brookdale, averaging $5.62 per share, totaling $56,200. Following this transaction, he retains ownership of 211,382 shares valued at around $1.19 million, representing a 4.52% reduction in his holdings. This transaction was reported through a filing with the Securities and Exchange Commission, accessible via the SEC's website. Generally, insiders hold about 1.80% of Brookdale's stock.

Institutional Investment Insights

Various institutional investors have recently adjusted their positions in Brookdale Senior Living. For example, Adelante Capital Management LLC acquired a stake worth approximately $12.08 million in Brookdale during the third quarter. Rush Island Management LP increased its stake by 31.9%, owning over 5.1 million shares valued at about $34.74 million. Wellington Management Group LLP also boosted its holdings, owning 7.83 million shares worth approximately $53.14 million. Other recent movements include Healthcare of Ontario Pension Plan Trust Fund establishing a new position valued at around $3.99 million and Vision Capital Corp increasing its stake by 27.8%, owning 1.84 million shares valued at nearly $12.48 million.

About Brookdale Senior Living

Brookdale Senior Living Inc. is a prominent owner, manager, and operator of various senior living communities throughout the United States. The company operates in three main segments: Independent Living, Assisted Living and Memory Care, and Continuing Care Retirement Communities (CCRCs). The Independent Living division focuses on offering communities that comprise independent and assisted living units intended primarily for middle to upper-income seniors.

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