PACS Group (NYSE:PACS) Trading Down 6.4% - What's Next?

Key Points

• PACS Group shares fell 6.4% to about $45.33, with trading volume roughly 49% below the daily average.
• Analysts remain broadly positive, with a consensus “Moderate Buy” rating and an average price target of $56; UBS, RBC, and Oppenheimer recently raised their targets.
• The company beat quarterly expectations, reporting $0.63 in earnings per share versus a $0.54 estimate and revenue of $1.43 billion, while insiders sold approximately $31.6 million of stock in the last quarter.

PACS Group, Inc. (NYSE:PACS - Get Free Report)'s stock price dropped 6.4% on Tuesday . The company traded as low as $45.22 and last traded at $45.3250. Approximately 480,062 shares were traded during trading, a decline of 49% from the average daily volume of 942,870 shares. The stock had previously closed at $48.45.

Wall Street Analysts Forecast Growth

PACS has been the topic of several analyst reports. Royal Bank Of Canada lifted their target price on shares of PACS Group from $52.00 to $57.00 and gave the stock an "outperform" rating in a research note on Thursday, August 6th. Zacks Research downgraded shares of PACS Group from a "strong-buy" rating to a "hold" rating in a research note on Thursday, May 14th. Oppenheimer increased their target price on shares of PACS Group from $48.00 to $57.00 and gave the stock an "outperform" rating in a report on Monday. UBS Group boosted their price target on PACS Group from $57.00 to $60.00 and gave the company a "buy" rating in a report on Thursday, August 6th. Finally, Wall Street Zen lowered PACS Group from a "strong-buy" rating to a "buy" rating in a research report on Saturday. Five equities research analysts have rated the stock with a Buy rating and two have assigned a Hold rating to the stock. Based on data from MarketBeat, the company has a consensus rating of "Moderate Buy" and a consensus target price of $56.00.

PACS Group Stock Down 6.4%

The company's fifty day simple moving average is $42.00 and its 200 day simple moving average is $37.93. The company has a current ratio of 0.91, a quick ratio of 0.91 and a debt-to-equity ratio of 0.21. The firm has a market capitalization of $7.17 billion, a P/E ratio of 26.36, a price-to-earnings-growth ratio of 1.45 and a beta of -0.08.

PACS Group (NYSE:PACS - Get Free Report) last announced its earnings results on Tuesday, August 4th. The company reported $0.63 earnings per share for the quarter, beating analysts' consensus estimates of $0.54 by $0.09. PACS Group had a net margin of 4.85% and a return on equity of 29.55%. The firm had revenue of $1.43 billion for the quarter, compared to analyst estimates of $1.41 billion. Research analysts expect that PACS Group, Inc. will post 2.23 EPS for the current year.

Insider Transactions at PACS Group

In other news, insider Mark Hancock sold 153,254 shares of the stock in a transaction that occurred on Monday, June 15th. The stock was sold at an average price of $36.34, for a total value of $5,569,250.36. Following the completion of the transaction, the insider owned 54,449,343 shares of the company's stock, valued at approximately $1,978,689,124.62. This represents a 0.28% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CAO Michelle Renee Lewis sold 15,000 shares of the firm's stock in a transaction that occurred on Thursday, June 25th. The shares were sold at an average price of $40.01, for a total value of $600,150.00. Following the completion of the transaction, the chief accounting officer owned 370,338 shares of the company's stock, valued at approximately $14,817,223.38. The trade was a 3.89% decrease in their position. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last quarter, insiders sold 796,524 shares of company stock valued at $31,611,396. Corporate insiders own 70.10% of the company's stock.

Hedge Funds Weigh In On PACS Group

Several institutional investors and hedge funds have recently added to or reduced their stakes in the company. Hollencrest Capital Management purchased a new stake in shares of PACS Group in the 4th quarter worth about $27,000. Financial Management Professionals Inc. lifted its position in PACS Group by 54.9% during the 2nd quarter. Financial Management Professionals Inc. now owns 663 shares of the company's stock valued at $28,000 after acquiring an additional 235 shares during the period. Quarry LP lifted its position in PACS Group by 79.5% during the 3rd quarter. Quarry LP now owns 2,388 shares of the company's stock valued at $33,000 after acquiring an additional 1,058 shares during the period. Larson Financial Group LLC boosted its stake in PACS Group by 127.0% during the fourth quarter. Larson Financial Group LLC now owns 1,094 shares of the company's stock worth $42,000 after acquiring an additional 612 shares in the last quarter. Finally, KBC Group NV bought a new stake in PACS Group during the first quarter worth about $42,000.

About PACS Group

PACS Group, Inc, through its subsidiaries, operates skilled nursing facilities and assisted living facilities in the United States. The company also provides senior care and independent facilities. It engages in the acquisition, ownership, and leasing of health care-related properties. The company was founded in 2013 and is based in Farmington, Utah.

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