Brookdale Senior Living (NYSE:BKD) Shares Gap Down After Earnings Miss

Key Points

• Brookdale Senior Living shares gapped down to $7.36 following a disappointing earnings report, with a net loss of ($0.18) EPS, missing estimates by ($0.04).
• Analysts have mixed views on the stock, with two sell ratings, one hold rating, and three buy ratings, predicting a consensus target price of $7.80.
• Significant institutional investors, including ANTIPODES PARTNERS Ltd and Flat Footed LLC, have increased their stakes in Brookdale Senior Living during the past quarters.

Brookdale Senior Living Inc. (NYSE:BKD - Get Free Report)'s stock price gapped down before the market opened on Thursday following a weaker than expected earnings announcement. The stock had previously closed at $7.80, but opened at $7.36. Brookdale Senior Living shares last traded at $7.31, with a volume of 1,086,659 shares changing hands.

The company reported ($0.18) earnings per share (EPS) for the quarter, missing the consensus estimate of ($0.14) by ($0.04). The firm had revenue of $812.94 million during the quarter, compared to analysts' expectations of $817.63 million. Brookdale Senior Living had a negative return on equity of 93.47% and a negative net margin of 7.60%.

Analysts Set New Price Targets

A number of brokerages have issued reports on BKD. Wall Street Zen upgraded shares of Brookdale Senior Living from a "sell" rating to a "hold" rating in a research note on Saturday. Barclays set a $8.00 target price on shares of Brookdale Senior Living and gave the company an "equal weight" rating in a research report on Thursday. Finally, Royal Bank Of Canada restated an "outperform" rating and set a $9.00 price objective on shares of Brookdale Senior Living in a research report on Wednesday, July 9th. One equities research analyst has rated the stock with a sell rating, two have issued a hold rating and three have assigned a buy rating to the company's stock. Based on data from MarketBeat, the company presently has an average rating of "Hold" and a consensus target price of $7.80.

Hedge Funds Weigh In On Brookdale Senior Living

Institutional investors and hedge funds have recently made changes to their positions in the business. Militia Capital Partners LP increased its holdings in shares of Brookdale Senior Living by 5.8% during the first quarter. Militia Capital Partners LP now owns 25,600 shares of the company's stock valued at $160,000 after purchasing an additional 1,400 shares during the period. Optimize Financial Inc increased its position in Brookdale Senior Living by 8.5% in the 1st quarter. Optimize Financial Inc now owns 24,294 shares of the company's stock worth $152,000 after buying an additional 1,902 shares during the period. MetLife Investment Management LLC boosted its position in shares of Brookdale Senior Living by 1.8% during the 4th quarter. MetLife Investment Management LLC now owns 112,878 shares of the company's stock valued at $568,000 after acquiring an additional 1,953 shares in the last quarter. KLP Kapitalforvaltning AS grew its position in Brookdale Senior Living by 7.0% in the second quarter. KLP Kapitalforvaltning AS now owns 35,100 shares of the company's stock valued at $244,000 after acquiring an additional 2,300 shares during the period. Finally, MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. boosted its stake in Brookdale Senior Living by 2.1% in the fourth quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 134,060 shares of the company's stock worth $674,000 after purchasing an additional 2,821 shares in the last quarter.

Brookdale Senior Living Stock Down 0.1%

The firm has a 50 day moving average price of $7.20 and a 200-day moving average price of $6.35. The firm has a market cap of $1.69 billion, a price-to-earnings ratio of -6.90 and a beta of 0.87. The company has a debt-to-equity ratio of 28.85, a current ratio of 0.82 and a quick ratio of 0.82.

About Brookdale Senior Living

Brookdale Senior Living Inc owns, manages, and operates senior living communities in the United States. It operates in three segments: Independent Living, Assisted Living and Memory Care, and Continuing Care Retirement Communities (CCRCs). The Independent Living segment owns or leases communities comprising independent and assisted living units in a single community that are primarily designed for middle to upper income seniors.