Handle With Care: Brookdale Senior Living Inc. (NYSE: BKD)

FIVE Stock
FIVE Stock

BlackRock Fund Advisors recently announced the acquisition of new stake in Brookdale Senior Living Inc. (NYSE:BKD). The institutional investor has increased its shareholding in the Healthcare company by 0.17% to 12.12 million shares with purchase of 20616.0 shares. This fresh investment now brings its stake to 6.62% valued currently at $33.57 million. In addition, SSgA Funds Management, Inc. raised its holdings by 0.36 million to 4.59 million shares. And BlackRock Advisors LLC has lifted its position by 206.75% or 2.78 million shares – to 4.13 million shares.

With over 1.69 million Brookdale Senior Living Inc. (BKD) shares trading Friday and a closing price of $2.85 on the day, the dollar volume was approximately $4.83 million. The shares have shown a positive weekly performance of 3.26% and its price on 08/28/20 lost nearly -0.35%. Currently, there are 183.18M common shares owned by the public and among those 179.08M 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: 4 analysts who have offered their price forecasts for BKD have a consensus price objective of $4.00. The analysts have set the share’s price value over the next 12 months at a high of $5.00 and a low of $3.00 should the stock experience a downside. Incidentally, analysts’ outlook for the Brookdale Senior Living Inc. stock is 2.20 for the next 12 months. The average price target is 28.75% above its last price level and an upside to the estimated low will see the stock gain 5.0% over that period. But an upside of 43.0% will see the stock hit the forecast high price target while mean target price for the stock is $4.00.

Insiders at the company have transacted a total of 48 times over the past 12 months, according to data filed with the U.S. Securities and Exchange Commission (SEC). 33 of these insider trades were purchases, accounting for 1,031,618 shares. Insider sales of the common stock occurred on 15 occasions, with total insider shares sold totaling 200,000 shares.

The top 3 mutual fund holders in Brookdale Senior Living Inc. are Vanguard Total Stock Market Index, Vanguard Small Cap Index Fund, and Delaware VIP Trust – REIT Series. Vanguard Total Stock Market Index owns 5.27 million shares of the company’s stock, all valued at over $14.6 million. Vanguard Small Cap Index Fund sold 27020.0 shares to see its total holdings shrink to 4.56 million shares valued at over $12.64 million and representing 2.49% of the shares outstanding. Delaware VIP Trust – REIT Series bought 0.46 million shares to bring its total holdings to over 4.42 million shares at a value of $12.26 million. Delaware VIP Trust – REIT Series now owns shares totaling to 2.42% of the shares outstanding.

Shares of Brookdale Senior Living Inc. (NYSE: BKD) opened at $2.85, down -$0.01 from a prior closing price of $2.86. However, the script later closed the day at $2.85, down -0.35%. The company’s stock has a 5-day price change of 3.26% and -21.70% over the past three months. BKD shares are trading -60.80% year to date (YTD), with the 12-month market performance down to -64.81% lower. It has a 12-month low price of $1.47 and touched a high of $8.80 over the same period. Currently, 1.69 million shares have been traded, compared to an average intraday trading volume of 2.85 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 1.08%, 2.78%, and -37.93% respectively.

Institutional ownership of Brookdale Senior Living Inc. (NYSE: BKD) shares accounts for 97.80% of the company’s 183.18M shares outstanding. Mutual fund holders own 41.04%, while other institutional holders and individual stakeholders account for 55.42% and 30.19% respectively.

It has a market capitalization of $524.09M and a beta (3y monthly) value of 1.65. The stock’s trailing 12-month PE ratio is 6.48, while the earnings-per-share (ttm) stands at $0.44. The company has a PEG of 0.65 and a Quick Ratio of 0.90 with the debt-to-equity ratio at 4.76. Price movements for the stock have been influenced by the stock’s volatility, which stands at 5.35% over the week and 5.69% over the month.

Analysts forecast that Brookdale Senior Living Inc. (BKD) will achieve an EPS of -$0.28 for the current quarter, -$0.31 for the next quarter and -$0.74 for 2021. The lowest estimate earnings-per-share for the quarter is -$0.43 while analysts give the company a high EPS estimate of -$0.14. Comparatively, EPS for the current quarter was -$0.42 a year ago. Earnings per share for the fiscal year are expected to increase by 48.30%, and -174.00% over the next financial year. EPS should grow at an annualized rate of 10.00% over the next five years, compared to -7.50% over the past 5-year period.

If you are looking to buy this stock, then you may note that the average analyst recommendation by 4 brokerage firm advisors rate Brookdale Senior Living Inc. (BKD) as a “Moderate Buy” at a consensus score of 2.20. Specifically, 2 Wall Street analysts polled rate the stock as a buy, while 2 of the 4 advise that investors “hold,” and 0 rated it as a “Sell.”

Looking at the support for the BKD, a number of firms have released research notes about the stock. Barclays stated their Equal Weight rating for the stock in a research note on September 03, 2019, with the firm’s price target at $8. Stifel coverage for the Brookdale Senior Living Inc. (BKD) stock in a research note released on August 07, 2018 offered a Hold rating with a price target of $8. RBC Capital Mkts was of a view on February 27, 2018 that the stock is Sector Perform, while Stifel gave the stock Hold rating on February 23, 2018, issuing a price target of $14- $9. RBC Capital Mkts on their part issued Outperform rating on November 08, 2017.


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