Addus HomeCare (NASDAQ:ADUS) Shares Gap Down - Should You Sell?

Key Points

• Shares gapped down from $100.12 to an open of $94.50 and were last trading around $92.33, down about 5.4% with ~66,469 shares changing hands.
• Analysts remain broadly positive with a consensus rating of "Moderate Buy" and a $133.22 average price target, despite some recent downgrades (e.g., Barclays to underweight).
• Addus beat EPS expectations ($1.62 vs. $1.52) but slightly missed revenue estimates, the company has a $1.77B market cap and low leverage, and insiders sold ~16,788 shares in the past 90 days while institutional ownership is ~95%.

Addus HomeCare Corporation (NASDAQ:ADUS - Get Free Report)'s stock price gapped down before the market opened on Tuesday . The stock had previously closed at $100.12, but opened at $94.50. Addus HomeCare shares last traded at $92.33, with a volume of 66,469 shares changing hands.

Wall Street Analysts Forecast Growth

Several equities analysts have weighed in on ADUS shares. Barclays lowered their target price on Addus HomeCare from $112.00 to $102.00 and set an "underweight" rating on the stock in a research note on Wednesday, March 25th. Truist Financial set a $135.00 target price on Addus HomeCare and gave the company a "buy" rating in a research note on Wednesday, January 7th. Stephens lowered their price target on Addus HomeCare from $140.00 to $135.00 and set an "overweight" rating for the company in a research note on Wednesday, February 25th. Royal Bank Of Canada reissued an "outperform" rating and issued a $139.00 price target on shares of Addus HomeCare in a research note on Wednesday, February 25th. Finally, KeyCorp reissued an "overweight" rating on shares of Addus HomeCare in a research note on Wednesday, February 25th. One equities research analyst has rated the stock with a Strong Buy rating, seven have issued a Buy rating, two have given a Hold rating and one has given a Sell rating to the stock. According to MarketBeat, Addus HomeCare presently has a consensus rating of "Moderate Buy" and a consensus price target of $133.22.

Addus HomeCare Stock Down 5.4%

The stock has a market cap of $1.77 billion, a P/E ratio of 18.17, a PEG ratio of 1.37 and a beta of 0.93. The company has a quick ratio of 1.80, a current ratio of 1.80 and a debt-to-equity ratio of 0.11. The business has a 50-day simple moving average of $98.77 and a 200-day simple moving average of $107.81.

Addus HomeCare (NASDAQ:ADUS - Get Free Report) last announced its earnings results on Monday, May 4th. The company reported $1.62 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $1.52 by $0.10. The firm had revenue of $363.50 million during the quarter, compared to analysts' expectations of $366.41 million. Addus HomeCare had a return on equity of 9.84% and a net margin of 6.74%.The company's revenue was up 7.7% on a year-over-year basis. During the same quarter in the prior year, the business earned $1.42 earnings per share. Analysts expect that Addus HomeCare Corporation will post 6.21 EPS for the current year.

Insider Activity

In other Addus HomeCare news, EVP Sean Gaffney sold 442 shares of the company's stock in a transaction that occurred on Wednesday, February 25th. The stock was sold at an average price of $105.36, for a total transaction of $46,569.12. Following the completion of the sale, the executive vice president owned 20,080 shares of the company's stock, valued at $2,115,628.80. This represents a 2.15% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through the SEC website. Also, EVP Darby Anderson sold 396 shares of the stock in a transaction that occurred on Wednesday, February 25th. The shares were sold at an average price of $105.36, for a total value of $41,722.56. Following the completion of the sale, the executive vice president directly owned 46,246 shares of the company's stock, valued at $4,872,478.56. This represents a 0.85% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Over the last ninety days, insiders have sold 16,788 shares of company stock valued at $1,785,633. Insiders own 4.50% of the company's stock.

Institutional Investors Weigh In On Addus HomeCare

Several hedge funds have recently modified their holdings of ADUS. Capital Research Global Investors boosted its position in shares of Addus HomeCare by 22.3% in the fourth quarter. Capital Research Global Investors now owns 1,469,752 shares of the company's stock valued at $157,837,000 after acquiring an additional 268,192 shares during the period. Tributary Capital Management LLC boosted its position in shares of Addus HomeCare by 114.1% in the third quarter. Tributary Capital Management LLC now owns 398,122 shares of the company's stock valued at $46,974,000 after acquiring an additional 212,192 shares during the period. Freestone Grove Partners LP boosted its position in shares of Addus HomeCare by 5,035.2% in the fourth quarter. Freestone Grove Partners LP now owns 137,932 shares of the company's stock valued at $14,813,000 after acquiring an additional 135,246 shares during the period. 8 Knots Management LLC bought a new stake in shares of Addus HomeCare in the third quarter valued at approximately $6,075,000. Finally, Empowered Funds LLC boosted its position in shares of Addus HomeCare by 186.1% in the fourth quarter. Empowered Funds LLC now owns 70,927 shares of the company's stock valued at $7,617,000 after acquiring an additional 46,137 shares during the period. 95.35% of the stock is owned by institutional investors.

Addus HomeCare Company Profile

Addus HomeCare NASDAQ: ADUS is a leading provider of home and community-based care services for elderly, disabled, and medically complex individuals across the United States. Through a network of company-owned and franchise locations, the company delivers a broad spectrum of non-medical personal care and licensed home health services designed to support clients' independence and quality of life.

The company's core offerings include personal care assistance—covering daily living activities, medication reminders, and light housekeeping—and skilled home health services delivered under the supervision of registered nurses and licensed therapists.

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