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

Brookdale Senior Living Inc. (NYSE:BKD) recently reached a new 52-week low, with shares trading as low as $4.67 during mid-day trading on Wednesday. The stock eventually closed at $4.77 after seeing a trading volume of 565,055 shares. This marked a decline from the previous close of $4.87.

Analyst Ratings Changes

Analyst opinions on Brookdale have varied recently. Macquarie maintained an "outperform" rating, setting a price target of $8.00 on December 20th. In contrast, Bank of America downgraded the stock from a "neutral" to an "underperform" rating, while reducing their price target from $7.75 to $6.00 on October 7th. Additionally, Jefferies Financial Group began coverage of Brookdale Senior Living, giving it a "buy" rating with an $8.00 price target on October 16th. Royal Bank of Canada also reiterated an "outperform" rating with a price target of $8.00 on December 20th. Currently, the stock holds a consensus rating of "Hold" and a price target of $7.50, according to MarketBeat.com.

Get Our Latest Stock Analysis on BKD

Brookdale Senior Living Trading Down 2.5 %

The company's market capitalization stands at approximately $922.34 million. It has a price-to-earnings (PE) ratio of -5.03 and a beta of 1.31. With a debt-to-equity ratio of 14.46, along with a current and quick ratio both at 0.81, the financial health of Brookdale requires close examination. The firm has a 50-day moving average price of $5.16, and a 200-day moving average price of $6.14.

Brookdale Senior Living reported its earnings on November 6th, showing a loss of ($0.22) per share, which fell short of the consensus estimate of ($0.16) by $0.06. The company noted a net margin of -6.75% and a return on equity of -59.06%. Total revenue for the quarter was $784.17 million, which was slightly below expectations of $785.61 million. Last year, during the same quarter, it also reported earnings of ($0.22) per share. Analysts predict that for the current fiscal year, Brookdale will post an earnings per share (EPS) of -0.68.

Insider Buying and Selling

Recent insider trading activity included the sale of 10,000 shares by Director Lee S. Wielansky on December 5th. The shares were sold at an average price of $5.62, totaling $56,200. Following this sale, Wielansky retains 211,382 shares, valued at roughly $1,187,966.84. This sale reflects a decrease of 4.52% in their holdings. Such transactions are documented in filings with the Securities and Exchange Commission.

Institutional Trading of Brookdale Senior Living

There have been recent changes in institutional holdings of Brookdale Senior Living. Adelante Capital Management LLC entered a new position worth approximately $12.08 million in the third quarter. Additionally, Rush Island Management LP increased its stake by 31.9%, acquiring an additional 1,237,727 shares, bringing its total to 5,116,632 shares valued at $34.74 million. Wellington Management Group LLP raised its holdings by 11.4%, adding 799,744 shares for a total of 7,826,807 shares worth $53.14 million. Healthcare of Ontario Pension Plan Trust Fund also acquired a stake worth around $3.99 million. Furthermore, Vision Capital Corp increased its position by 27.8%, obtaining an additional 400,000 shares to reach a total of 1,838,440 shares valued at $12.48 million.

Brookdale Senior Living Company Profile

Brookdale Senior Living Inc. is engaged in the ownership, management, and operation of senior living communities throughout the United States. It operates through three primary segments: Independent Living, Assisted Living and Memory Care, and Continuing Care Retirement Communities (CCRCs). The Independent Living segment consists of communities that provide both independent and assisted living facilities and mainly target middle to upper-income seniors.

Should You Invest $1,000 in Brookdale Senior Living Right Now?

Investors are advised to consider their options carefully before investing in Brookdale Senior Living. Although the stock currently holds a "Moderate Buy" rating among analysts, there are stronger recommendations for alternative investments. Investors should explore other opportunities that may yield better returns.

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