Brookdale Senior Living Sees Unusually High Options Volume (NYSE:BKD)

Key Points

• Options activity surged: Investors traded 3,119 Brookdale Senior Living call options, 183% above the typical daily volume of 1,103.
• Shares remain below recent averages: BKD rose $0.36 to $12.91, versus its 50-day and 200-day moving averages of $14.36 and $14.24, respectively. The stock has traded between $7.11 and $17.09 over the past year.
• Analyst sentiment is moderately positive: The stock carries a consensus “Moderate Buy” rating and a $17.40 price target, despite recent rating downgrades and the company’s negative net margin and projected full-year loss.

Brookdale Senior Living Inc. (NYSE:BKD - Get Free Report) was the target of unusually large options trading on Wednesday. Investors acquired 3,119 call options on the company. This represents an increase of 183% compared to the typical daily volume of 1,103 call options.

Brookdale Senior Living Price Performance

Shares of NYSE BKD traded up $0.36 during midday trading on Wednesday, reaching $12.91. 1,468,413 shares of the company traded hands, compared to its average volume of 4,656,877. Brookdale Senior Living has a 52 week low of $7.11 and a 52 week high of $17.09. The stock has a 50-day moving average price of $14.36 and a 200 day moving average price of $14.24. The company has a market cap of $3.08 billion, a price-to-earnings ratio of -22.16 and a beta of 0.60.

Brookdale Senior Living (NYSE:BKD - Get Free Report) last released its quarterly earnings results on Monday, August 10th. The company reported $0.10 EPS for the quarter, topping analysts' consensus estimates of ($0.06) by $0.16. The company had revenue of $718.58 million for the quarter, compared to the consensus estimate of $735.63 million. Brookdale Senior Living had a negative net margin of 4.53% and a negative return on equity of 15,050.32%. As a group, analysts expect that Brookdale Senior Living will post -0.1 EPS for the current year.

Analyst Upgrades and Downgrades

BKD has been the subject of a number of analyst reports. Weiss Ratings lowered Brookdale Senior Living from a "sell (d)" rating to a "sell (d-)" rating in a research report on Wednesday, May 27th. Zacks Research lowered Brookdale Senior Living from a "strong-buy" rating to a "hold" rating in a research report on Tuesday, April 21st. Compass Point assumed coverage on shares of Brookdale Senior Living in a report on Monday, June 15th. They set a "buy" rating and a $22.00 price target for the company. Finally, Barclays reduced their price target on shares of Brookdale Senior Living from $18.00 to $17.00 and set an "overweight" rating for the company in a report on Tuesday. One equities research analyst has rated the stock with a Strong Buy rating, five have assigned a Buy rating, one has given a Hold rating and one has issued a Sell rating to the stock. According to data from MarketBeat.com, the stock currently has a consensus rating of "Moderate Buy" and a consensus target price of $17.40.

Institutional Trading of Brookdale Senior Living

Several institutional investors have recently modified their holdings of the company. Nierenberg Investment Management Company LLC acquired a new position in Brookdale Senior Living during the second quarter worth about $4,104,720,000. Edmond DE Rothschild Holding S.A. bought a new position in shares of Brookdale Senior Living during the 2nd quarter valued at about $25,261,000. NewEdge Wealth LLC bought a new position in shares of Brookdale Senior Living during the 2nd quarter valued at about $1,369,000. Deutsche Bank AG acquired a new position in shares of Brookdale Senior Living in the 2nd quarter worth approximately $46,167,000. Finally, Persistent Asset Partners Ltd acquired a new position in shares of Brookdale Senior Living in the 2nd quarter worth approximately $66,000.

Brookdale Senior Living Company Profile

Brookdale Senior Living Inc NYSE: BKD is one of the nation's largest operators of senior living communities, offering a full spectrum of living options that includes independent living, assisted living, memory care, continuing care retirement communities, respite care and skilled nursing services. The company emphasizes programs and amenities that support wellness, social engagement and overall quality of life for older adults.

Across the United States and Puerto Rico, Brookdale manages more than 700 communities serving tens of thousands of residents.

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