Addus HomeCare (NASDAQ:ADUS) Shares Up 8.7% 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 stock price was up 8.7% during trading on Tuesday after the company announced better than expected quarterly earnings. The company traded as high as $117.54 and last traded at $116.27. Approximately 296,199 shares traded hands 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, topping the consensus estimate of $1.45 by $0.04. The firm had revenue of $349.44 million for the quarter, compared to analysts' expectations of $345.71 million. Addus HomeCare had a return on equity of 9.23% and a net margin of 6.52%. The company's quarterly revenue was up 21.8% compared to the same quarter last year. During the same quarter last year, the business earned $1.35 EPS.

Wall Street Analysts Forecast Growth

Several brokerages recently issued reports on ADUS. Macquarie reiterated an "outperform" rating and set a $133.00 price target on shares of Addus HomeCare in a report on Tuesday, June 10th. Wall Street Zen raised Addus HomeCare from a "hold" rating to a "buy" rating in a research report on Sunday, June 29th. Finally, JMP Securities reissued a "market outperform" rating and set a $150.00 price objective on shares of Addus HomeCare in a report on Wednesday, July 16th. Seven research analysts have rated the stock with a buy rating and two have issued a strong buy rating to the stock. Based on data from MarketBeat.com, the company has an average rating of "Buy" and a consensus price target of $142.57.

Insider Transactions at Addus HomeCare

In other news, EVP Michael D. Wattenbarger sold 2,045 shares of the company's stock in a transaction dated Tuesday, May 27th. The stock was 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 owned 7,796 shares of the company's stock, valued at $896,540. This represents a 20.78% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available at this hyperlink. Corporate insiders own 4.60% of the company's stock.

Institutional Investors Weigh In On Addus HomeCare

Hedge funds and other institutional investors have recently added to or reduced their stakes in the stock. Dimensional Fund Advisors LP boosted its position in Addus HomeCare by 1.5% during the 4th quarter. Dimensional Fund Advisors LP now owns 692,713 shares of the company's stock valued at $86,833,000 after acquiring an additional 10,434 shares in the last quarter. WCM Investment Management LLC raised its stake in Addus HomeCare by 4.9% in the 1st quarter. WCM Investment Management LLC now owns 494,791 shares of the company's stock worth $48,143,000 after acquiring an additional 23,176 shares during the last quarter. Principal Financial Group Inc. raised its stake in Addus HomeCare by 18.3% in the 1st quarter. Principal Financial Group Inc. now owns 475,818 shares of the company's stock worth $47,054,000 after acquiring an additional 73,720 shares during the last quarter. Wellington Management Group LLP raised its stake in shares of Addus HomeCare by 25.8% during the 1st quarter. Wellington Management Group LLP now owns 471,935 shares of the company's stock valued at $46,670,000 after buying an additional 96,823 shares during the last quarter. Finally, Invesco Ltd. raised its stake in shares of Addus HomeCare by 19.8% during the 1st quarter. Invesco Ltd. now owns 414,705 shares of the company's stock valued at $41,010,000 after buying an additional 68,585 shares during the last quarter. 95.35% of the stock is currently owned by hedge funds and other institutional investors.

Addus HomeCare Trading Up 8.3%

The company has a debt-to-equity ratio of 0.20, a quick ratio of 1.74 and a current ratio of 1.74. The company has a 50 day moving average of $111.80 and a two-hundred day moving average of $108.27. The stock has a market cap of $2.13 billion, a PE ratio of 26.25, a price-to-earnings-growth ratio of 1.49 and a beta of 0.80.

Addus HomeCare Company Profile

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.

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