Brookdale Senior Living (NYSE:BKD) Shares Gap Up After Insider Buying Activity

Key Points

• Insider buying preceded a gap-up open: Director C. Christian Winkle bought 40,000 shares at an average of $8.95, and BKD opened at $9.27 after closing at $8.96. Shares later traded near $8.93.
• Analyst views are mixed: The consensus rating is “Moderate Buy” with a $15.60 price target, though Barclays and Stephens cut their targets, and Zacks downgraded the stock to “strong sell.”
• Quarterly results missed expectations: Brookdale reported an adjusted loss of $0.06 per share versus the $0.03 loss analysts expected, while revenue of $712.07 million also came in below estimates.

Brookdale Senior Living Inc. (NYSE:BKD - Get Free Report)'s share price gapped up prior to trading on Friday following insider buying activity. The stock had previously closed at $8.96, but opened at $9.27. Brookdale Senior Living shares last traded at $8.9340, with a volume of 1,148,620 shares trading hands.

Specifically, Director C Christian Winkle acquired 40,000 shares of Brookdale Senior Living stock in a transaction dated Tuesday, November 10th. The stock was bought at an average price of $8.95 per share, with a total value of $358,000.00. Following the transaction, the director directly owned 40,000 shares in the company, valued at $358,000. This represents a ∞ increase in their position. The purchase was disclosed in a filing with the SEC, which is available at the SEC website.

Wall Street Analysts Forecast Growth

Several equities analysts have weighed in on the company. Barclays reduced their price objective on Brookdale Senior Living from $17.00 to $14.00 and set an "overweight" rating for the company in a report on Tuesday. Weiss Ratings reiterated a "sell (d-)" rating on shares of Brookdale Senior Living in a research report on Monday, August 24th. Stephens dropped their target price on Brookdale Senior Living from $17.00 to $12.00 and set an "overweight" rating on the stock in a report on Monday. Finally, Zacks Research lowered shares of Brookdale Senior Living from a "strong-buy" rating to a "strong sell" rating in a research report on Monday. Six analysts have rated the stock with a Buy rating and two have given a Sell rating to the company's stock. Based on data from MarketBeat.com, Brookdale Senior Living presently has an average rating of "Moderate Buy" and a consensus target price of $15.60.

Brookdale Senior Living Stock Performance

The company has a market cap of $2.14 billion, a price-to-earnings ratio of -55.85 and a beta of 0.55. The firm's 50 day simple moving average is $10.69 and its 200-day simple moving average is $13.19.

Brookdale Senior Living (NYSE:BKD - Get Free Report) last issued its quarterly earnings data on Friday, November 6th. The company reported ($0.06) EPS for the quarter, missing the consensus estimate of ($0.03) by ($0.03). Brookdale Senior Living had a negative return on equity of 15,050.32% and a negative net margin of 1.27%. The company had revenue of $712.07 million during the quarter, compared to analyst estimates of $721.26 million. As a group, sell-side analysts expect that Brookdale Senior Living Inc. will post -0.05 EPS for the current fiscal year.

Institutional Investors Weigh In On Brookdale Senior Living

A number of large investors have recently bought and sold shares of the stock. Northwestern Mutual Wealth Management Co. acquired a new position in shares of Brookdale Senior Living during the 2nd quarter valued at $43,000. Public Employees Retirement System of Ohio bought a new position in shares of Brookdale Senior Living in the second quarter worth $53,000. Nykredit A S bought a new position in shares of Brookdale Senior Living in the second quarter valued at approximately $57,000. Persistent Asset Partners Ltd bought a new position in Brookdale Senior Living during the second quarter valued at about $66,000. Finally, Calamos Advisors LLC bought a new stake in shares of Brookdale Senior Living in the 3rd quarter worth approximately $110,000.

Brookdale Senior Living Company Profile

Brookdale Senior Living Inc. operates senior living communities in the United States, serving older adults with a range of housing and care options. Its offerings include independent living, assisted living and memory care, with services tailored to residents' needs and levels of independence. Community services may include meals, housekeeping, transportation, wellness programs and social activities, alongside personal assistance and specialized support for residents with memory-related conditions.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.