Extendicare (TSE:EXE) Trading Down 8.3% - Here's Why

Key Points

• Extendicare shares fell 8.3% to C$31.35, with trading volume nearly doubling the daily average to about 745,218 shares.
• Analysts remain positive, with a consensus “Buy” rating and several upgraded price targets ranging as high as C$40.00; the consensus target is C$32.56.
• The company reported quarterly revenue of C$611.04 million and EPS of C$0.32, while announcing a monthly dividend of C$0.0441 per share, representing a 1.7% yield.

Extendicare Inc. (TSE:EXE - Get Free Report) was down 8.3% during trading on Friday . The stock traded as low as C$30.57 and last traded at C$31.35. Approximately 745,218 shares traded hands during mid-day trading, an increase of 95% from the average daily volume of 383,111 shares. The stock had previously closed at C$34.19.

Wall Street Analysts Forecast Growth

A number of brokerages have weighed in on EXE. National Bank Financial increased their price target on shares of Extendicare from C$34.00 to C$40.00 and gave the company an "outperform" rating in a report on Wednesday, May 27th. Canaccord Genuity Group raised shares of Extendicare to a "strong-buy" rating in a research report on Monday, May 11th. TD increased their target price on shares of Extendicare from C$32.00 to C$39.00 and gave the company a "buy" rating in a research note on Monday, May 11th. Desjardins set a C$34.50 target price on Extendicare and gave the stock a "buy" rating in a research report on Wednesday, April 22nd. Finally, BMO Capital Markets upped their price target on Extendicare from C$30.00 to C$38.00 in a report on Wednesday, May 13th. Two investment analysts have rated the stock with a Strong Buy rating and six have given a Buy rating to the company's stock. Based on data from MarketBeat.com, Extendicare currently has a consensus rating of "Buy" and a consensus price target of C$32.56.

Extendicare Price Performance

The stock has a market cap of C$3.01 billion, a P/E ratio of 23.36 and a beta of 1.59. The company has a current ratio of 1.44, a quick ratio of 0.98 and a debt-to-equity ratio of 82.55. The company's fifty day simple moving average is C$35.24 and its 200-day simple moving average is C$30.18.

Extendicare (TSE:EXE - Get Free Report) last posted its earnings results on Thursday, August 6th. The company reported C$0.32 earnings per share for the quarter. Extendicare had a net margin of 6.99% and a return on equity of 45.35%. The business had revenue of C$611.04 million for the quarter. As a group, sell-side analysts forecast that Extendicare Inc. will post 0.6134729 EPS for the current year.

Extendicare Announces Dividend

The business also recently announced a monthly dividend, which will be paid on Monday, August 17th. Stockholders of record on Monday, August 17th will be issued a $0.0441 dividend. The ex-dividend date of this dividend is Friday, July 31st. This represents a c) dividend on an annualized basis and a dividend yield of 1.7%. Extendicare's dividend payout ratio is presently 37.24%.

Extendicare Company Profile

Extendicare Inc, operating solely in Canada, is the largest private-sector owner and operator of long-term care (LTC") homes and one of the largest private-sector providers of publicly funded home health care services.

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