CareTrust REIT (NYSE:CTRE) Hits New 12-Month High - Still a Buy?

Key Points

• CareTrust REIT shares hit a new 52-week high of $43.10, reflecting continued momentum in the stock and strong recent trading volume.
• Analysts remain broadly positive, with several firms raising price targets and the stock carrying a consensus Buy rating and average target price of $44.82.
• The company paid a quarterly dividend of $0.39 per share, annualizing to $1.56 for a 3.7% yield, though its payout ratio is a high 100%.

Shares of CareTrust REIT, Inc. (NYSE:CTRE - Get Free Report) hit a new 52-week high during trading on Friday . The company traded as high as $43.10 and last traded at $42.7360, with a volume of 800118 shares changing hands. The stock had previously closed at $41.97.

Analyst Ratings Changes

A number of research analysts have recently weighed in on the company. Mizuho set a $45.00 price objective on CareTrust REIT in a research report on Friday, May 22nd. Wells Fargo & Company lifted their price target on shares of CareTrust REIT from $42.00 to $47.00 and gave the company an "overweight" rating in a report on Monday, June 1st. BMO Capital Markets increased their price objective on shares of CareTrust REIT from $46.00 to $47.00 and gave the stock an "outperform" rating in a research note on Monday, June 15th. KeyCorp restated an "overweight" rating and set a $46.00 price objective on shares of CareTrust REIT in a research report on Friday, May 29th. Finally, Citigroup restated a "market outperform" rating on shares of CareTrust REIT in a research note on Wednesday, June 10th. Two analysts have rated the stock with a Strong Buy rating, nine have given a Buy rating and two have assigned a Hold rating to the stock. Based on data from MarketBeat, the stock has a consensus rating of "Buy" and an average target price of $44.82.

CareTrust REIT Stock Performance

The company has a quick ratio of 2.37, a current ratio of 2.38 and a debt-to-equity ratio of 0.22. The stock has a market cap of $10.09 billion, a PE ratio of 27.43, a price-to-earnings-growth ratio of 1.81 and a beta of 0.76. The firm has a 50 day moving average price of $39.89 and a 200 day moving average price of $38.96.

CareTrust REIT Announces Dividend

The firm also recently declared a quarterly dividend, which was paid on Wednesday, July 15th. Shareholders of record on Tuesday, June 30th were paid a $0.39 dividend. The ex-dividend date was Tuesday, June 30th. This represents a $1.56 dividend on an annualized basis and a yield of 3.7%. CareTrust REIT's dividend payout ratio (DPR) is 100.00%.

Hedge Funds Weigh In On CareTrust REIT

Hedge funds and other institutional investors have recently modified their holdings of the stock. Principal Financial Group Inc. increased its holdings in shares of CareTrust REIT by 7.5% in the fourth quarter. Principal Financial Group Inc. now owns 1,328,660 shares of the company's stock valued at $48,044,000 after purchasing an additional 93,101 shares during the period. Sound Income Strategies LLC grew its position in CareTrust REIT by 6.4% during the 4th quarter. Sound Income Strategies LLC now owns 621,732 shares of the company's stock worth $23,477,000 after purchasing an additional 37,503 shares during the period. B&I Capital AG acquired a new stake in CareTrust REIT during the fourth quarter worth about $10,989,000. M&T Bank Corp purchased a new position in CareTrust REIT during the fourth quarter valued at approximately $894,000. Finally, Vanderbilt University acquired a new position in CareTrust REIT in the fourth quarter valued at approximately $1,125,000. 87.77% of the stock is owned by hedge funds and other institutional investors.

About CareTrust REIT

CareTrust REIT, Inc is a real estate investment trust based in Deerfield Beach, Florida, specializing in the ownership, acquisition and management of net-leased healthcare properties. The company primarily focuses on seniors housing and post-acute care facilities, entering into long-term, triple-net lease agreements with leading operators in the skilled nursing, assisted living, memory care, inpatient rehabilitation and specialty hospital sectors. Through its portfolio, CareTrust REIT aims to provide investors with stable and predictable rental income while supporting the ongoing demand for quality healthcare real estate across the United States.

Since its initial public offering in September 2013, CareTrust REIT has pursued a disciplined acquisition strategy, targeting properties in primary and select secondary markets.

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