BrightSpring Health Services (NASDAQ:BTSG) Shares Down 4.6% - Here's What Happened

Key Points

• BrightSpring shares fell 4.6% to about $56.74 in midday trading, with volume 65% below the stock’s average daily level.
• Despite the decline, analyst sentiment remains positive: BTSG has a consensus “Buy” rating and a $70.71 average price target, implying upside from its trading price.
• The company recently beat quarterly expectations, reporting $0.45 in EPS on $3.87 billion in revenue, while revenue increased 23% year over year; however, two insiders also sold shares in June.

Shares of BrightSpring Health Services, Inc. (NASDAQ:BTSG - Get Free Report) fell 4.6% during mid-day trading on Tuesday . The stock traded as low as $57.02 and last traded at $56.7360. 1,037,742 shares traded hands during trading, a decline of 65% from the average daily volume of 2,980,388 shares. The stock had previously closed at $59.49.

Wall Street Analyst Weigh In

BTSG has been the subject of several research reports. BMO Capital Markets set a $70.00 target price on BrightSpring Health Services in a report on Thursday, May 21st. Mizuho lifted their price target on BrightSpring Health Services from $52.00 to $61.00 and gave the stock an "outperform" rating in a research report on Tuesday, May 5th. Wells Fargo & Company boosted their price objective on BrightSpring Health Services from $61.00 to $78.00 and gave the company an "overweight" rating in a research note on Monday, July 13th. Deutsche Bank Aktiengesellschaft reissued a "buy" rating and issued a $70.00 price objective on shares of BrightSpring Health Services in a report on Monday, August 3rd. Finally, Morgan Stanley lifted their target price on shares of BrightSpring Health Services from $71.00 to $80.00 and gave the company an "overweight" rating in a report on Tuesday, July 14th. Two research analysts have rated the stock with a Strong Buy rating and eighteen have given a Buy rating to the stock. Based on data from MarketBeat.com, the company has a consensus rating of "Buy" and a consensus price target of $70.71.

BrightSpring Health Services Stock Down 4.6%

The business has a 50-day simple moving average of $66.36 and a two-hundred day simple moving average of $54.33. The company has a market capitalization of $11.23 billion, a price-to-earnings ratio of 34.18, a PEG ratio of 0.71 and a beta of 1.88. The company has a debt-to-equity ratio of 1.06, a quick ratio of 1.22 and a current ratio of 1.59.

BrightSpring Health Services (NASDAQ:BTSG - Get Free Report) last issued its quarterly earnings results on Friday, July 31st. The company reported $0.45 earnings per share for the quarter, topping the consensus estimate of $0.40 by $0.05. The firm had revenue of $3.87 billion during the quarter, compared to the consensus estimate of $3.66 billion. BrightSpring Health Services had a return on equity of 16.73% and a net margin of 2.55%.The company's revenue for the quarter was up 23.0% on a year-over-year basis. During the same period last year, the company earned $0.22 earnings per share. As a group, equities analysts predict that BrightSpring Health Services, Inc. will post 1.82 EPS for the current year.

Insider Activity

In related news, insider Jon B. Rousseau sold 130,000 shares of the stock in a transaction dated Friday, June 5th. The shares were sold at an average price of $58.75, for a total transaction of $7,637,500.00. Following the completion of the transaction, the insider directly owned 1,194,503 shares of the company's stock, valued at $70,177,051.25. This represents a 9.82% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is available at this link. Also, insider Lisa A. Nalley sold 35,000 shares of the business's stock in a transaction that occurred on Friday, June 5th. The stock was sold at an average price of $58.75, for a total value of $2,056,250.00. Following the transaction, the insider owned 131,948 shares in the company, valued at $7,751,945. The trade was a 20.96% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Corporate insiders own 2.80% of the company's stock.

Hedge Funds Weigh In On BrightSpring Health Services

A number of institutional investors and hedge funds have recently made changes to their positions in BTSG. Allworth Financial LP acquired a new stake in shares of BrightSpring Health Services in the second quarter valued at about $28,000. NBC Securities Inc. purchased a new stake in BrightSpring Health Services during the fourth quarter worth about $29,000. GHP Investment Advisors Inc. acquired a new position in BrightSpring Health Services during the first quarter worth about $31,000. EverSource Wealth Advisors LLC acquired a new position in BrightSpring Health Services during the second quarter worth about $43,000. Finally, Kilter Group LLC purchased a new position in BrightSpring Health Services in the second quarter valued at about $50,000.

BrightSpring Health Services Company Profile

BrightSpring Health Services NASDAQ: BTSG is a leading provider of home and community-based care and workforce solutions aimed at seniors, individuals with disabilities and those facing behavioral health challenges. The company's operations encompass a broad spectrum of services, including personal care, skilled nursing, therapy, habilitation and supported living, as well as specialized behavioral health programs delivered through both clinical and non-clinical channels.

Through its network of subsidiary brands, BrightSpring offers integrated care in the patient's home environment, fostering independence and improving quality of life.

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