BrightSpring Health Services (NASDAQ:BTSG) Trading Down 16.1% - Time to Sell?

Key Points

• BrightSpring Health Services shares fell 16.1% to about $61.18, with trading volume 63% below the average daily level.
• Despite the selloff, analysts maintain a consensus “Buy” rating, with a $70.12 average price target and recent targets ranging from $70 to $85.
• The company exceeded quarterly expectations, reporting $0.45 in EPS versus $0.40 expected and $3.87 billion in revenue, up 23% year over year; however, two insiders recently sold shares.

BrightSpring Health Services, Inc. (NASDAQ:BTSG - Get Free Report)'s stock price was down 16.1% during trading on Friday . The company traded as low as $62.45 and last traded at $61.1810. 1,104,093 shares traded hands during mid-day trading, a decline of 63% from the average daily volume of 2,976,296 shares. The stock had previously closed at $72.88.

Analysts Set New Price Targets

Several brokerages have weighed in on BTSG. Guggenheim initiated coverage on BrightSpring Health Services in a report on Monday, July 13th. They set a "buy" rating and a $81.00 price objective for the company. BMO Capital Markets set a $70.00 target price on BrightSpring Health Services in a research note on Thursday, May 21st. TD Cowen upped their price target on BrightSpring Health Services from $65.00 to $81.00 and gave the company a "buy" rating in a research report on Thursday, June 18th. KeyCorp increased their price target on BrightSpring Health Services from $60.00 to $80.00 and gave the stock an "overweight" rating in a research note on Tuesday, July 14th. Finally, UBS Group lifted their price objective on BrightSpring Health Services from $63.00 to $85.00 and gave the stock a "buy" rating in a report on Wednesday, July 8th. One investment analyst has rated the stock with a Strong Buy rating, eighteen have issued a Buy rating and one has issued a Hold rating to the stock. Based on data from MarketBeat, the company has a consensus rating of "Buy" and a consensus price target of $70.12.

BrightSpring Health Services Stock Down 15.6%

The stock's 50 day moving average is $66.35 and its 200 day moving average is $51.80. The company has a market capitalization of $12.13 billion, a PE ratio of 43.63, a PEG ratio of 0.88 and a beta of 1.79. The company has a debt-to-equity ratio of 1.24, a quick ratio of 1.38 and a current ratio of 1.74.

BrightSpring Health Services (NASDAQ:BTSG - Get Free Report) last released its quarterly earnings data on Friday, July 31st. The company reported $0.45 earnings per share for the quarter, beating analysts' consensus estimates of $0.40 by $0.05. BrightSpring Health Services had a net margin of 2.27% and a return on equity of 14.63%. The business had revenue of $3.87 billion during the quarter, compared to analyst estimates of $3.66 billion. During the same period in the previous year, the business earned $0.22 EPS. BrightSpring Health Services's revenue was up 23.0% compared to the same quarter last year. On average, sell-side analysts anticipate that BrightSpring Health Services, Inc. will post 1.7 EPS for the current fiscal year.

Insiders Place Their Bets

In related news, insider Lisa A. Nalley sold 35,000 shares of the business'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 $2,056,250.00. Following the sale, the insider directly owned 131,948 shares in the company, valued at approximately $7,751,945. The trade was a 20.96% decrease in their position. The transaction was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. Also, insider Jon B. Rousseau sold 130,000 shares of the business's stock in a transaction on Friday, June 5th. The shares were sold at an average price of $58.75, for a total value of $7,637,500.00. Following the sale, the insider owned 1,194,503 shares in the company, valued at approximately $70,177,051.25. The trade was a 9.82% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. 2.80% of the stock is owned by company insiders.

Institutional Inflows and Outflows

Several large investors have recently added to or reduced their stakes in the stock. CWM LLC raised its stake in BrightSpring Health Services by 17.5% in the fourth quarter. CWM LLC now owns 1,874 shares of the company's stock valued at $70,000 after purchasing an additional 279 shares in the last quarter. State of Wyoming grew its stake in BrightSpring Health Services by 4.5% in the 1st quarter. State of Wyoming now owns 7,776 shares of the company's stock worth $331,000 after buying an additional 336 shares in the last quarter. EverSource Wealth Advisors LLC grew its stake in BrightSpring Health Services by 17.3% in the 4th quarter. EverSource Wealth Advisors LLC now owns 3,826 shares of the company's stock worth $143,000 after buying an additional 565 shares in the last quarter. Moran Wealth Management LLC grew its stake in BrightSpring Health Services by 9.0% in the 1st quarter. Moran Wealth Management LLC now owns 6,925 shares of the company's stock worth $295,000 after buying an additional 572 shares in the last quarter. Finally, GHP Investment Advisors Inc. bought a new position in shares of BrightSpring Health Services in the 1st quarter worth $31,000.

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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.