PACS Group (NYSE:PACS) Trading Down 8% - Should You Sell?

Key Points

• PACS Group shares fell 8% to $41.22 in midday trading, below the average analyst price target of $50.60. Despite the decline, analysts maintain a “Moderate Buy” consensus, with five Buy ratings and two Holds.
• The company exceeded quarterly expectations, reporting $0.63 in EPS versus the $0.54 estimate and $1.43 billion in revenue versus the $1.41 billion consensus forecast.
• Insiders have sold approximately $31.6 million of shares over the past 90 days, although many transactions were made under pre-arranged trading plans. Insiders continue to own a substantial 70.1% of the company.

PACS Group, Inc. (NYSE:PACS - Get Free Report)'s stock price was down 8% during trading on Wednesday . The company traded as low as $39.13 and last traded at $41.22. Approximately 308,117 shares were traded during mid-day trading, a decline of 67% from the average daily volume of 931,847 shares. The stock had previously closed at $44.81.

Analyst Ratings Changes

Several equities analysts have weighed in on the company. Oppenheimer raised their price target on PACS Group from $42.00 to $48.00 and gave the company an "outperform" rating in a report on Wednesday, May 13th. Wall Street Zen raised PACS Group from a "buy" rating to a "strong-buy" rating in a research note on Monday, June 15th. Truist Financial upped their price objective on PACS Group from $50.00 to $52.00 and gave the stock a "buy" rating in a report on Monday, May 18th. UBS Group increased their target price on PACS Group from $50.00 to $57.00 and gave the company a "buy" rating in a research report on Wednesday, July 8th. Finally, Zacks Research lowered shares of PACS Group from a "strong-buy" rating to a "hold" rating in a report on Thursday, May 14th. Five equities research analysts have rated the stock with a Buy rating and two have issued a Hold rating to the stock. According to data from MarketBeat, PACS Group currently has a consensus rating of "Moderate Buy" and an average target price of $50.60.

PACS Group Stock Performance

The business's fifty day moving average price is $41.20 and its two-hundred day moving average price is $37.66. The company has a debt-to-equity ratio of 0.27, a quick ratio of 0.99 and a current ratio of 0.99. The stock has a market capitalization of $7.35 billion, a P/E ratio of 29.52, a P/E/G ratio of 1.33 and a beta of -0.08.

PACS Group (NYSE:PACS - Get Free Report) last announced its quarterly earnings results on Tuesday, August 4th. The company reported $0.63 EPS for the quarter, beating analysts' consensus estimates of $0.54 by $0.09. The firm had revenue of $1.43 billion during the quarter, compared to the consensus estimate of $1.41 billion. PACS Group had a net margin of 4.49% and a return on equity of 26.47%. As a group, sell-side analysts forecast that PACS Group, Inc. will post 2.23 earnings per share for the current year.

Insider Buying and Selling

In other news, Director Mark Hancock sold 4,966 shares of the firm's stock in a transaction that occurred on Thursday, July 9th. The stock was sold at an average price of $45.06, for a total value of $223,767.96. Following the completion of the sale, the director directly owned 53,920,512 shares of the company's stock, valued at $2,429,658,270.72. This trade represents a 0.01% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CAO Michelle Renee Lewis sold 4,137 shares of PACS Group stock in a transaction that occurred on Monday, July 6th. The stock was sold at an average price of $45.04, for a total value of $186,330.48. Following the completion of the transaction, the chief accounting officer owned 355,338 shares of the company's stock, valued at approximately $16,004,423.52. This trade represents a 1.15% 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. Over the last 90 days, insiders have sold 796,524 shares of company stock worth $31,611,396. Company insiders own 70.10% of the company's stock.

Institutional Trading of PACS Group

A number of institutional investors have recently bought and sold shares of PACS. Financial Management Professionals Inc. increased its position in PACS Group by 54.9% during the second 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 last quarter. Hollencrest Capital Management bought a new stake in shares of PACS Group in the 4th quarter worth about $27,000. Larson Financial Group LLC lifted its holdings in shares of PACS Group by 127.0% in the 4th quarter. Larson Financial Group LLC now owns 1,094 shares of the company's stock worth $42,000 after acquiring an additional 612 shares during the last quarter. KBC Group NV purchased a new position in shares of PACS Group during the 1st quarter worth about $42,000. Finally, Western Wealth Management LLC bought a new position in PACS Group during the 1st quarter valued at about $48,000.

PACS Group Company Profile

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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