CareTrust REIT, Inc. (NYSE:CTRE) Sees Significant Decline in Short Interest

Key Points

• Short interest in CareTrust REIT fell 37.7% to 15.4 million shares as of August 31, representing 6.6% of shares outstanding and 6.2 days of average trading volume.
• Analysts remain broadly positive, with a consensus “Moderate Buy” rating and a $44.50 price target, compared with the reported share price of $38.26.
• CareTrust agreed to acquire a $400 million portfolio of skilled-nursing facilities and announced an additional $600 million acquisition pipeline, while maintaining its quarterly dividend at $0.39 per share, yielding about 4.1%.

CareTrust REIT, Inc. (NYSE:CTRE - Get Free Report) was the recipient of a large decline in short interest in August. As of August 31st, there was short interest totaling 15,432,408 shares, a decline of 37.7% from the August 15th total of 24,756,021 shares. Currently, 6.6% of the company's stock are sold short. Based on an average daily volume of 2,472,030 shares, the short-interest ratio is currently 6.2 days.

Analysts Set New Price Targets

Several equities analysts have weighed in on the company. Mizuho set a $45.00 price objective on CareTrust REIT in a research note on Friday, May 22nd. BMO Capital Markets increased their target price on shares of CareTrust REIT from $46.00 to $47.00 and gave the company an "outperform" rating in a report on Monday, June 15th. KeyCorp reissued an "overweight" rating on shares of CareTrust REIT in a research report on Wednesday. Huntington began coverage on shares of CareTrust REIT in a report on Thursday, September 10th. They set an "outperform" rating and a $44.00 price target on the stock. Finally, Raymond James Financial started coverage on shares of CareTrust REIT in a research report on Tuesday, June 16th. They issued an "outperform" rating and a $43.00 price objective for the company. One research analyst has rated the stock with a Strong Buy rating, ten have given a Buy rating and three have given a Hold rating to the company. According to MarketBeat, the company presently has a consensus rating of "Moderate Buy" and a consensus price target of $44.50.

Key CareTrust REIT News

Here are the key news stories impacting CareTrust REIT this week:

• Positive Sentiment: Portfolio acquisition expands CareTrust’s asset base: CareTrust agreed to acquire a Southwest portfolio of skilled-nursing facilities for approximately $400 million. The portfolio includes 2,622 licensed beds and will be leased to the existing operator under a long-term triple-net lease with inflation-linked rent escalators and renewal options. These terms could provide predictable rental income and support future funds-from-operations growth. CareTrust REIT Acquires Skilled Nursing Portfolio for $400 Million; Announces $600 Million Reloaded Pipeline
• Positive Sentiment: Additional acquisition opportunities remain available: CareTrust announced a reloaded pipeline valued at roughly $600 million, suggesting continued growth potential beyond the newly acquired facilities and reinforcing its strategy of expanding in the skilled-nursing real estate market. CareTrust REIT Acquires Skilled Nursing Portfolio for $400 Million; Announces $600 Million Reloaded Pipeline
• Positive Sentiment: Unusually heavy call-option activity signals bullish speculation: Traders purchased 3,705 call options, compared with typical daily volume of about 111 contracts. While this is not a fundamental indicator, the sharp increase may reflect expectations for near-term upside or heightened investor interest in CTRE.
• Neutral Sentiment: Quarterly dividend maintained: CareTrust declared a $0.39-per-share dividend payable October 15 to shareholders of record September 30. The payment represents $1.56 annualized and an indicated yield of approximately 4.1%; however, the dividend was maintained rather than increased. CareTrust REIT Announces Quarterly Dividend of $0.39 per Share

CareTrust REIT Stock Performance

NYSE CTRE traded down $0.16 on Wednesday, hitting $38.26. 136,014 shares of the stock traded hands, compared to its average volume of 2,523,138. The business's fifty day moving average is $40.39 and its two-hundred day moving average is $39.69. CareTrust REIT has a 12 month low of $32.79 and a 12 month high of $43.62. The firm has a market capitalization of $9.04 billion, a price-to-earnings ratio of 24.03, a PEG ratio of 1.51 and a beta of 0.76. The company has a debt-to-equity ratio of 0.27, a quick ratio of 0.57 and a current ratio of 0.57.

CareTrust REIT (NYSE:CTRE - Get Free Report) last released its quarterly earnings data on Thursday, August 6th. The company reported $0.51 EPS for the quarter, meeting the consensus estimate of $0.51. The business had revenue of $161.35 million for the quarter. CareTrust REIT had a net margin of 62.19% and a return on equity of 8.52%. CareTrust REIT has set its FY 2026 guidance at 2.030-2.060 EPS. As a group, equities analysts anticipate that CareTrust REIT will post 2.04 EPS for the current fiscal year.

CareTrust REIT Dividend Announcement

The business also recently disclosed a quarterly dividend, which will be paid on Thursday, October 15th. Investors of record on Wednesday, September 30th will be issued a dividend of $0.39 per share. The ex-dividend date of this dividend is Wednesday, September 30th. This represents a $1.56 dividend on an annualized basis and a yield of 4.1%. CareTrust REIT's dividend payout ratio is 98.11%.

Hedge Funds Weigh In On CareTrust REIT

Hedge funds and other institutional investors have recently added to or reduced their stakes in the business. Persistent Asset Partners Ltd bought a new stake in CareTrust REIT during the 2nd quarter valued at $31,000. Compass Financial Management LLC purchased a new position in CareTrust REIT in the second quarter worth about $34,000. Eurizon Capital SGR S.p.A. purchased a new stake in shares of CareTrust REIT during the fourth quarter valued at $44,000. Burnham & Co LLC bought a new stake in CareTrust REIT in the 2nd quarter worth about $61,000. Finally, Allworth Financial LP purchased a new position in CareTrust REIT in the 2nd quarter worth about $66,000. 87.77% of the stock is currently owned by hedge funds and other institutional investors.

CareTrust REIT Company Profile

CareTrust REIT, Inc is a healthcare-focused real estate investment trust that owns and manages a portfolio of healthcare-related properties across the United States. The company primarily invests in properties that are leased to healthcare operators under long-term, typically triple-net lease agreements.

CareTrust's portfolio includes skilled nursing facilities, assisted living facilities, independent living communities, memory care properties and other healthcare-related real estate. Its tenants are responsible for operating the facilities and generally cover property-level expenses such as taxes, insurance and maintenance under the terms of the leases.

CareTrust was established in 2014 through a separation from The Ensign Group, a healthcare services company.

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