Addus HomeCare (NASDAQ:ADUS) Trading 8.7% Higher Following Strong Earnings

Key Points

• Addus HomeCare Corporation's stock price surged by 8.7% following a quarterly earnings report that exceeded analysts' expectations, with earnings per share at $1.49, surpassing the forecast of $1.45.
• The company's revenue for the quarter was $349.44 million, up 21.8% year-over-year, also exceeding analyst expectations of $345.71 million.
• Multiple brokerages have issued positive ratings for Addus HomeCare, with an average consensus price target of $142.57, indicating strong growth potential according to market analysts.

Addus HomeCare Corporation (NASDAQ:ADUS - Get Free Report)'s share price rose 8.7% during trading on Tuesday following a stronger than expected earnings report. The company traded as high as $117.54 and last traded at $116.27. Approximately 296,199 shares were traded during mid-day trading, an increase of 56% from the average daily volume of 189,858 shares. The stock had previously closed at $106.96.

The company reported $1.49 earnings per share for the quarter, beating the consensus estimate of $1.45 by $0.04. The business had revenue of $349.44 million during the quarter, compared to the consensus estimate of $345.71 million. Addus HomeCare had a net margin of 6.51% and a return on equity of 9.39%. The business's quarterly revenue was up 21.8% compared to the same quarter last year. During the same period in the prior year, the firm earned $1.35 earnings per share.

Wall Street Analyst Weigh In

ADUS has been the subject of several analyst reports. Macquarie restated an "outperform" rating and issued a $133.00 target price on shares of Addus HomeCare in a research note on Tuesday, June 10th. JMP Securities reiterated a "market outperform" rating and set a $150.00 price objective on shares of Addus HomeCare in a research note on Wednesday, July 16th. Wall Street Zen upgraded shares of Addus HomeCare from a "hold" rating to a "buy" rating in a research note on Sunday, June 29th. Finally, TD Cowen increased their price objective on shares of Addus HomeCare from $135.00 to $139.00 and gave the company a "buy" rating in a research note on Wednesday. Seven equities research analysts have rated the stock with a buy rating and two have given a strong buy rating to the company's stock. According to MarketBeat, Addus HomeCare presently has an average rating of "Buy" and an average target price of $142.86.

Insider Activity at Addus HomeCare

In other Addus HomeCare news, EVP Michael D. Wattenbarger sold 2,045 shares of the firm's stock in a transaction dated Tuesday, May 27th. The shares were sold at an average price of $115.00, for a total value of $235,175.00. Following the completion of the transaction, the executive vice president directly owned 7,796 shares in the company, valued at $896,540. This trade represents a 20.78% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is available through this link. 4.60% of the stock is currently owned by insiders.

Institutional Trading of Addus HomeCare

Institutional investors have recently made changes to their positions in the stock. Natixis boosted its holdings in shares of Addus HomeCare by 111.9% during the fourth quarter. Natixis now owns 250 shares of the company's stock worth $31,000 after purchasing an additional 132 shares during the period. BI Asset Management Fondsmaeglerselskab A S acquired a new stake in Addus HomeCare in the first quarter valued at approximately $41,000. CWM LLC lifted its stake in Addus HomeCare by 25.3% in the second quarter. CWM LLC now owns 554 shares of the company's stock valued at $64,000 after acquiring an additional 112 shares during the last quarter. Parkside Financial Bank & Trust lifted its stake in Addus HomeCare by 22.9% in the second quarter. Parkside Financial Bank & Trust now owns 661 shares of the company's stock valued at $76,000 after acquiring an additional 123 shares during the last quarter. Finally, Caitong International Asset Management Co. Ltd lifted its stake in Addus HomeCare by 368.3% in the first quarter. Caitong International Asset Management Co. Ltd now owns 1,255 shares of the company's stock valued at $124,000 after acquiring an additional 987 shares during the last quarter. 95.35% of the stock is currently owned by institutional investors and hedge funds.

Addus HomeCare Price Performance

The company has a debt-to-equity ratio of 0.17, a current ratio of 1.74 and a quick ratio of 1.74. The stock has a market capitalization of $2.03 billion, a price-to-earnings ratio of 24.32, a PEG ratio of 1.65 and a beta of 0.80. The stock's 50 day simple moving average is $111.73 and its 200-day simple moving average is $107.85.

About Addus HomeCare

Addus HomeCare Corporation, together with its subsidiaries, provides personal care services to elderly, chronically ill, disabled persons, and individuals who are at risk of hospitalization or institutionalization in the United States. The company operates through three segments: Personal Care, Hospice, and Home Health.