Genesis Healthcare Inc. (NYSE: GEN) Seen Running Too Hot, Let’s Look At This More Closely


    The Vanguard Group, Inc. recently announced the acquisition of new stake in Genesis Healthcare Inc. (NYSE:GEN). The institutional investor has increased its shareholding in the Healthcare company by 49.66% to 5.41 million shares with purchase of 1.8 million shares. This fresh investment now brings its stake to 4.92% valued currently at $4.75 million. In addition, Acadian Asset Management LLC raised its holdings by 0.19 million to 1.82 million shares. And Millennium Management LLC has lifted its position by 10.65% or 82844.0 shares – to 0.86 million shares.

    With over 1.06 million Genesis Healthcare Inc. (GEN) shares trading Monday and a closing price of $0.68 on the day, the dollar volume was approximately $0.72 million. The shares have shown a negative weekly performance of -2.08% and its price on 08/24/20 lost nearly -3.67%. Currently, there are 111.23M common shares owned by the public and among those 63.44M 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: 2 analysts who have offered their price forecasts for GEN have a consensus price objective of $1.38. The analysts have set the share’s price value over the next 12 months at a high of $2.00 and a low of $0.75 should the stock experience a downside. Incidentally, analysts’ outlook for the Genesis Healthcare Inc. stock is 3.00 for the next 12 months. But an upside of 66.0% will see the stock hit the forecast high price target while mean target price for the stock is $1.38.

    Insiders at the company have transacted a total of 22 times over the past 12 months, according to data filed with the U.S. Securities and Exchange Commission (SEC). 12 of these insider trades were purchases, accounting for 1,707,940 shares. Insider sales of the common stock occurred on 10 occasions, with total insider shares sold totaling 135,695 shares.

    The top 3 mutual fund holders in Genesis Healthcare Inc. are Vanguard Total Stock Market Index, Vanguard Extended Market Index Fu, and Bridgeway Ultra Small Company Mar. Vanguard Total Stock Market Index owns 4.7 million shares of the company’s stock, all valued at over $4.12 million. Bridgeway Ultra Small Company Mar bought 0.27 million shares to bring its total holdings to over 0.59 million shares at a value of $0.52 million. Bridgeway Ultra Small Company Mar now owns shares totaling to 0.54% of the shares outstanding.

    Shares of Genesis Healthcare Inc. (NYSE: GEN) opened at $0.70, unchanged from a prior closing price of $0.70. However, the script later closed the day at $0.68, down -3.67%. The company’s stock has a 5-day price change of -2.08% and -41.55% over the past three months. GEN shares are trading -58.66% year to date (YTD), with the 12-month market performance down to -32.01% lower. It has a 12-month low price of $0.58 and touched a high of $1.86 over the same period. Currently, 1.06 million shares have been traded, compared to an average intraday trading volume of 1.40 million shares. The stock is trading above its simple moving averages at the SMA20, SMA50, and SMA200, as the current price level is off by -17.19%, -12.82%, and -40.97% respectively.

    Institutional ownership of Genesis Healthcare Inc. (NYSE: GEN) shares accounts for 25.70% of the company’s 111.23M shares outstanding. Mutual fund holders own 30.47%, while other institutional holders and individual stakeholders account for 7.12% and 16.67% respectively.

    It has a market capitalization of $113.16M and a beta (3y monthly) value of 1.57. The stock’s trailing 12-month PE ratio is 3.85, while the earnings-per-share (ttm) stands at $0.18. The company has a PEG of 0.39 and a Quick Ratio of 0.90. Price movements for the stock have been influenced by the stock’s volatility, which stands at 5.26% over the week and 6.28% over the month.

    Analysts forecast that Genesis Healthcare Inc. (GEN) will achieve an EPS of -$0.36 for the current quarter, -$0.13 for the next quarter and -$0.4 for 2021. The lowest estimate earnings-per-share for the quarter is -$0.36 while analysts give the company a high EPS estimate of -$0.36. Comparatively, EPS for the current quarter was $0.4 a year ago. Earnings per share for the fiscal year are expected to increase by 103.80%, and 50.00% over the next financial year. EPS should shrink at an annualized rate of 10.00% over the next five years, compared to 15.10% over the past 5-year period.

    If you are looking to buy this stock, then you may note that the average analyst recommendation by 2 brokerage firm advisors rate Genesis Healthcare Inc. (GEN) as a “Hold” at a consensus score of 3.00. Specifically, 0 Wall Street analysts polled rate the stock as a buy, while 2 of the 2 advise that investors “hold,” and 0 rated it as a “Sell.”

    Looking at the support for the GEN, a number of firms have released research notes about the stock. Stifel stated their Buy rating for the stock in a research note on November 29, 2018, with the firm’s price target at. RBC Capital Mkts coverage for the Genesis Healthcare Inc. (GEN) stock in a research note released on November 21, 2016 offered a Sector Perform rating with a price target of $3.50. RBC Capital Mkts was of a view on May 16, 2016 that the stock is Outperform, while BofA/Merrill gave the stock Underperform rating on May 16, 2016, issuing a price target of. RBC Capital Mkts on their part issued Outperform rating on January 26, 2016.


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