Is CareTrust REIT Inc. (NASDAQ: CTRE) Back In The Buying Zone?


    The Vanguard Group, Inc. recently announced the acquisition of new stake in CareTrust REIT Inc. (NASDAQ:CTRE). The institutional investor has increased its shareholding in the Real Estate company by 1.57% to 14.8 million shares with purchase of 0.23 million shares. This fresh investment now brings its stake to 15.46% valued currently at $253.9 million. In addition, Fidelity Management & Research Co. raised its holdings by 0.15 million to 4.74 million shares. And SSgA Funds Management, Inc. has lifted its position by 13.78% or 0.51 million shares – to 4.19 million shares.

    With over 0.41 million CareTrust REIT Inc. (CTRE) shares trading Friday and a closing price of $17.36 on the day, the dollar volume was approximately $7.11 million. The shares have shown a positive weekly performance of 4.20% and its price on 07/24/20 gained nearly 1.88%. Currently, there are 95.16M common shares owned by the public and among those 94.16M shares have been available to trade.

    An analysis of what Wall Street brokers have to say about the expected price targets for this stock gives us this picture: 9 analysts who have offered their price forecasts for CTRE have a consensus price objective of $18.63. The analysts have set the share’s price value over the next 12 months at a high of $21.00 and a low of $13.00 should the stock experience a downside. Incidentally, analysts’ outlook for the CareTrust REIT Inc. stock is 2.60 for the next 12 months. The average price target is 7.56% above its last price level and an upside to the estimated low will see the stock lose -33.54% over that period. But an upside of 17.33% will see the stock hit the forecast high price target while mean target price for the stock is $19.00.

    Insiders at the company have transacted a total of 23 times over the past 12 months, according to data filed with the U.S. Securities and Exchange Commission (SEC). 11 of these insider trades were purchases, accounting for 331,579 shares. Insider sales of the common stock occurred on 12 occasions, with total insider shares sold totaling 82,882 shares.

    The top 3 mutual fund holders in CareTrust REIT Inc. are iShares Core S&P Small Cap ETF, Vanguard Real Estate Index Fund, and Vanguard Total Stock Market Index. iShares Core S&P Small Cap ETF owns 5.91 million shares of the company’s stock, all valued at over $101.42 million. Vanguard Real Estate Index Fund bought 29659.0 shares to see its total holdings expand to 4.27 million shares valued at over $73.33 million and representing 4.47% of the shares outstanding. Vanguard Total Stock Market Index sold 7034.0 shares to bring its total holdings to over 2.7 million shares at a value of $46.39 million. Vanguard Total Stock Market Index now owns shares totaling to 2.82% of the shares outstanding.

    Shares of CareTrust REIT Inc. (NASDAQ: CTRE) opened at $17.42, up $0.38 from a prior closing price of $17.04. However, the script later closed the day at $17.36, up 1.88%. The company’s stock has a 5-day price change of 4.20% and 13.76% over the past three months. CTRE shares are trading -15.85% year to date (YTD), with the 12-month market performance down to -25.59% lower. It has a 12-month low price of $7.16 and touched a high of $24.56 over the same period. Currently, 0.41 million shares have been traded, compared to an average intraday trading volume of 930.91K shares. The stock is trading above its simple moving averages at the SMA20, SMA50, and SMA200, as the current price level is off by 2.56%, -3.80%, and -10.45% respectively.

    Institutional ownership of CareTrust REIT Inc. (NASDAQ: CTRE) shares accounts for 92.60% of the company’s 95.16M shares outstanding. Mutual fund holders own 31.42%, while other institutional holders and individual stakeholders account for 56.53% and 2.85% respectively.

    It has a market capitalization of $1.71B and a beta (3y monthly) value of 1.03. The stock’s trailing 12-month PE ratio is 33.32, while the earnings-per-share (ttm) stands at $0.52. The company has a PEG of 5.55 and the debt-to-equity ratio at 0.62. Price movements for the stock have been influenced by the stock’s volatility, which stands at 3.58% over the week and 3.53% over the month.

    Analysts forecast that CareTrust REIT Inc. (CTRE) will achieve an EPS of $0.19 for the current quarter, $0.2 for the next quarter and $0.79 for 2021. The lowest estimate earnings-per-share for the quarter is $0.19 while analysts give the company a high EPS estimate of $0.19. Comparatively, EPS for the current quarter was $0.21 a year ago. Earnings per share for the fiscal year are expected to decrease by -31.80%, and 1.67% over the next financial year. EPS should shrink at an annualized rate of 6.00% over the next five years, compared to 27.60% over the past 5-year period.

    If you are looking to buy this stock, then you may note that the average analyst recommendation by 9 brokerage firm advisors rate CareTrust REIT Inc. (CTRE) as a “Moderate Buy” at a consensus score of 2.60. Specifically, 2 Wall Street analysts polled rate the stock as a buy, while 5 of the 9 advise that investors “hold,” and 0 rated it as a “Sell.”

    Looking at the support for the CTRE, a number of firms have released research notes about the stock. Raymond James stated their Outperform rating for the stock in a research note on April 29, 2020, with the firm’s price target at $19. Mizuho coverage for the CareTrust REIT Inc. (CTRE) stock in a research note released on April 06, 2020 offered a Neutral rating with a price target of $13. Berenberg was of a view on February 28, 2020 that the stock is Hold, while BMO Capital Markets gave the stock Market Perform rating on January 07, 2020, issuing a price target of $26- $22. Mizuho on their part issued Underperform rating on December 20, 2019.


    Please enter your comment!
    Please enter your name here