BrightSpring Health Services (NASDAQ:BTSG) Rating Increased to Strong-Buy at Wall Street Zen

Key Points

• BrightSpring Health Services was upgraded by Wall Street Zen from “buy” to “strong-buy”, adding to a generally bullish analyst backdrop. Overall, 2 analysts now rate it Strong Buy and 16 rate it Buy, with an average target price of $59.60.
• The company recently reported better-than-expected first-quarter earnings, posting EPS of $0.39 versus the $0.29 estimate and revenue of $3.61 billion versus $3.39 billion expected. Revenue rose 25.6% year over year.
• Despite the positive sentiment, there was notable insider selling, including sales by Jon B. Rousseau and Lisa A. Nalley on June 5. Meanwhile, several large investors such as Vanguard, State Street, and Jane Street significantly increased their holdings.

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

BTSG has been the topic of a number of other reports. Leerink Partners reiterated an "outperform" rating and issued a $49.00 price objective on shares of BrightSpring Health Services in a research report on Wednesday, March 18th. KeyCorp upped their price objective on shares of BrightSpring Health Services from $55.00 to $60.00 and gave the stock an "overweight" rating in a research report on Monday, May 4th. Deutsche Bank Aktiengesellschaft restated a "buy" rating and issued a $60.00 target price on shares of BrightSpring Health Services in a research note on Monday, May 4th. Weiss Ratings raised shares of BrightSpring Health Services from a "hold (c)" rating to a "buy (b-)" rating in a report on Monday, May 4th. Finally, Morgan Stanley boosted their price target on shares of BrightSpring Health Services from $62.00 to $71.00 and gave the stock an "overweight" rating in a research note on Tuesday, June 2nd. Two equities research analysts have rated the stock with a Strong Buy rating and sixteen have given a Buy rating to the company's stock. Based on data from MarketBeat.com, the stock has an average rating of "Buy" and an average target price of $59.60.

BrightSpring Health Services Price Performance

BrightSpring Health Services stock opened at $66.25 on Friday. BrightSpring Health Services has a twelve month low of $19.01 and a twelve month high of $66.69. The stock has a 50 day moving average of $55.27 and a two-hundred day moving average of $45.01. The company has a current ratio of 1.74, a quick ratio of 1.38 and a debt-to-equity ratio of 1.24. The stock has a market capitalization of $13.07 billion, a price-to-earnings ratio of 46.99, a PEG ratio of 0.85 and a beta of 1.87.

BrightSpring Health Services (NASDAQ:BTSG - Get Free Report) last announced its earnings results on Friday, May 1st. The company reported $0.39 earnings per share for the quarter, beating the consensus estimate of $0.29 by $0.10. BrightSpring Health Services had a return on equity of 14.63% and a net margin of 2.27%.The company had revenue of $3.61 billion for the quarter, compared to the consensus estimate of $3.39 billion. During the same period last year, the business posted $0.14 EPS. The company's revenue was up 25.6% on a year-over-year basis. As a group, research analysts expect that BrightSpring Health Services will post 1.67 earnings per share for the current year.

Insider Buying and Selling

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

Hedge Funds Weigh In On BrightSpring Health Services

A number of large investors have recently made changes to their positions in the stock. Vanguard Group Inc. boosted its holdings in BrightSpring Health Services by 30.5% during the fourth quarter. Vanguard Group Inc. now owns 12,533,656 shares of the company's stock worth $469,385,000 after buying an additional 2,928,953 shares in the last quarter. The Manufacturers Life Insurance Company grew its position in BrightSpring Health Services by 936.4% during the second quarter. The Manufacturers Life Insurance Company now owns 2,276,583 shares of the company's stock worth $53,705,000 after buying an additional 2,056,920 shares during the period. State Street Corp increased its holdings in BrightSpring Health Services by 99.5% in the fourth quarter. State Street Corp now owns 4,033,149 shares of the company's stock valued at $151,041,000 after buying an additional 2,011,095 shares in the last quarter. Jane Street Group LLC increased its holdings in BrightSpring Health Services by 855.4% in the second quarter. Jane Street Group LLC now owns 2,076,730 shares of the company's stock valued at $48,990,000 after buying an additional 1,859,369 shares in the last quarter. Finally, 8 Knots Management LLC acquired a new stake in shares of BrightSpring Health Services during the 3rd quarter valued at approximately $51,244,000.

About BrightSpring Health Services

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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