BrightSpring Health Services (NASDAQ:BTSG) Lowered to Buy Rating by Wall Street Zen

Key Points

• Wall Street Zen downgraded BrightSpring Health Services from “strong buy” to “buy,” though the broader analyst consensus remains “Buy,” with an average price target of $70.71.
• BrightSpring exceeded quarterly expectations, reporting $0.45 in EPS versus a $0.40 estimate and $3.87 billion in revenue, up 23% year over year.
• Shares opened at $58.87, while company insiders sold stock in June; meanwhile, major institutional investors including Vanguard and T. Rowe Price increased their holdings.

BrightSpring Health Services (NASDAQ:BTSG - Get Free Report) was downgraded by stock analysts at Wall Street Zen from a "strong-buy" rating to a "buy" rating in a research report issued on Sunday.

Several other brokerages have also weighed in on BTSG. Deutsche Bank Aktiengesellschaft reissued a "buy" rating and issued a $70.00 price objective on shares of BrightSpring Health Services in a report on Monday, August 3rd. Weiss Ratings reiterated a "buy (b-)" rating on shares of BrightSpring Health Services in a research report on Friday, July 31st. The Goldman Sachs Group assumed coverage on BrightSpring Health Services in a report on Monday, June 8th. They issued a "buy" rating and a $71.00 price target for the company. BTIG Research reissued a "buy" rating and set a $90.00 price target on shares of BrightSpring Health Services in a research report on Thursday, August 13th. Finally, Guggenheim initiated coverage on BrightSpring Health Services in a research note on Monday, July 13th. They set a "buy" rating and a $81.00 price objective on the stock. Two research analysts have rated the stock with a Strong Buy rating and eighteen have given a Buy rating to the company's stock. According to data from MarketBeat, BrightSpring Health Services presently has an average rating of "Buy" and an average target price of $70.71.

BrightSpring Health Services Price Performance

Shares of NASDAQ BTSG opened at $58.87 on Friday. BrightSpring Health Services has a 52 week low of $22.86 and a 52 week high of $73.75. The company has a current ratio of 1.59, a quick ratio of 1.22 and a debt-to-equity ratio of 1.06. The stock has a market cap of $11.65 billion, a price-to-earnings ratio of 35.46, a PEG ratio of 0.72 and a beta of 1.88. The company's 50-day moving average price is $66.45 and its 200 day moving average price is $54.09.

BrightSpring Health Services (NASDAQ:BTSG - Get Free Report) last posted its quarterly earnings results on Friday, July 31st. The company reported $0.45 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.40 by $0.05. The firm had revenue of $3.87 billion for the quarter, compared to analysts' expectations of $3.66 billion. BrightSpring Health Services had a net margin of 2.55% and a return on equity of 16.73%. The firm's quarterly revenue was up 23.0% on a year-over-year basis. During the same period in the prior year, the company posted $0.22 earnings per share. As a group, research analysts forecast that BrightSpring Health Services will post 1.82 earnings per share for the current fiscal year.

Insider Buying and Selling at BrightSpring Health Services

In other news, insider Jon B. Rousseau sold 130,000 shares of the company's stock in a transaction dated Friday, June 5th. The shares were sold at an average price of $58.75, for a total transaction of $7,637,500.00. Following the completion of the transaction, the insider owned 1,194,503 shares in the company, valued at approximately $70,177,051.25. This represents a 9.82% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. Also, insider Lisa A. Nalley sold 35,000 shares of the stock in a transaction dated Friday, June 5th. The stock was sold at an average price of $58.75, for a total transaction of $2,056,250.00. Following the completion of the sale, the insider directly owned 131,948 shares in the company, valued at approximately $7,751,945. This trade represents a 20.96% decrease in their position. The SEC filing for this sale provides additional information. 2.80% of the stock is owned by company insiders.

Institutional Inflows and Outflows

Several institutional investors and hedge funds have recently bought and sold shares of the company. Vanguard Group Inc. raised its holdings in shares of BrightSpring Health Services by 30.5% during the fourth quarter. Vanguard Group Inc. now owns 12,533,656 shares of the company's stock valued at $469,385,000 after buying an additional 2,928,953 shares during the last quarter. Price T Rowe Associates Inc. MD increased its position in BrightSpring Health Services by 4.7% in the 4th quarter. Price T Rowe Associates Inc. MD now owns 10,662,236 shares of the company's stock valued at $399,302,000 after acquiring an additional 478,436 shares during the period. Invesco Ltd. increased its position in BrightSpring Health Services by 13.4% in the 4th quarter. Invesco Ltd. now owns 10,595,232 shares of the company's stock valued at $396,791,000 after acquiring an additional 1,248,107 shares during the period. T. Rowe Price Investment Management Inc. raised its stake in BrightSpring Health Services by 21.7% during the 4th quarter. T. Rowe Price Investment Management Inc. now owns 6,123,865 shares of the company's stock valued at $229,339,000 after acquiring an additional 1,091,757 shares in the last quarter. Finally, Alliancebernstein L.P. raised its stake in BrightSpring Health Services by 12.1% during the 2nd quarter. Alliancebernstein L.P. now owns 5,450,085 shares of the company's stock valued at $128,568,000 after acquiring an additional 588,642 shares in the last quarter.

BrightSpring Health Services Company Profile

BrightSpring Health Services NASDAQ: BTSG is a leading provider of home and community-based care and workforce solutions aimed at seniors, individuals with disabilities and those facing behavioral health challenges. The company's operations encompass a broad spectrum of services, including personal care, skilled nursing, therapy, habilitation and supported living, as well as specialized behavioral health programs delivered through both clinical and non-clinical channels.

Through its network of subsidiary brands, BrightSpring offers integrated care in the patient's home environment, fostering independence and improving quality of life.

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