CareTrust REIT (NYSE:CTRE) Sees Strong Trading Volume After Analyst Upgrade

Key Points

• UBS raised its price target on CareTrust REIT from $44 to $46 and maintained a Buy rating. Trading volume rose 77% above its average to about 4.54 million shares, even as the stock traded lower.
• Analysts have a Moderate Buy consensus, with a consensus price target of $43.71; ratings include one Strong Buy, ten Buys, and four Holds.
• CareTrust reported quarterly EPS of $0.54, beating estimates of $0.52, and declared a quarterly dividend of $0.39 per share—$1.56 annualized, yielding about 4.1%.

CareTrust REIT, Inc. (NYSE:CTRE - Get Free Report) saw unusually-high trading volume on Thursday after UBS Group raised their price target on the stock from $44.00 to $46.00. UBS Group currently has a buy rating on the stock. Approximately 4,538,983 shares changed hands during mid-day trading, an increase of 77% from the average daily volume of 2,560,909 shares. The stock last traded at $37.7570 and had previously closed at $38.61.

A number of other brokerages also recently issued reports on CTRE. KeyCorp restated an "overweight" rating on shares of CareTrust REIT in a report on Tuesday, October 6th. Weiss Ratings lowered CareTrust REIT from a "buy (b+)" rating to a "buy (b)" rating in a research report on Monday, October 12th. Huntington assumed coverage on CareTrust REIT in a research report on Thursday, September 10th. They issued an "outperform" rating and a $44.00 price objective on the stock. Citigroup reissued a "market outperform" rating on shares of CareTrust REIT in a research note on Tuesday, October 13th. Finally, BMO Capital Markets decreased their target price on CareTrust REIT from $47.00 to $45.00 and set an "outperform" rating for the company in a report on Monday, October 5th. One analyst has rated the stock with a Strong Buy rating, ten have assigned a Buy rating and four have assigned a Hold rating to the company's stock. According to MarketBeat.com, CareTrust REIT currently has a consensus rating of "Moderate Buy" and a consensus target price of $43.71.

Institutional Inflows and Outflows

Several institutional investors have recently made changes to their positions in the company. BlackRock Inc. bought a new stake in CareTrust REIT in the second quarter worth $1,643,290,000. Deutsche Bank AG purchased a new position in shares of CareTrust REIT in the 2nd quarter worth about $143,963,000. Dimensional Fund Advisors LP raised its position in shares of CareTrust REIT by 1.9% in the 1st quarter. Dimensional Fund Advisors LP now owns 3,333,252 shares of the company's stock worth $122,164,000 after purchasing an additional 61,417 shares during the last quarter. Bank of New York Mellon Corp raised its position in shares of CareTrust REIT by 5.2% in the 1st quarter. Bank of New York Mellon Corp now owns 2,558,104 shares of the company's stock worth $93,755,000 after purchasing an additional 127,138 shares during the last quarter. Finally, UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC boosted its stake in CareTrust REIT by 35,170.9% in the 2nd quarter. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC now owns 1,411,896 shares of the company's stock worth $56,970,000 after purchasing an additional 1,407,893 shares in the last quarter. Institutional investors own 87.77% of the company's stock.

CareTrust REIT Trading Down 2.1%

The stock's 50 day moving average is $37.25 and its 200-day moving average is $39.01. The company has a market cap of $9.74 billion, a P/E ratio of 23.78, a PEG ratio of 1.38 and a beta of 0.77. The company has a current ratio of 3.08, a quick ratio of 3.08 and a debt-to-equity ratio of 0.39.

CareTrust REIT (NYSE:CTRE - Get Free Report) last released its quarterly earnings data on Thursday, November 5th. The company reported $0.54 EPS for the quarter, beating the consensus estimate of $0.52 by $0.02. CareTrust REIT had a return on equity of 8.08% and a net margin of 59.18%. The company had revenue of $176.36 million for the quarter. Research analysts anticipate that CareTrust REIT, Inc. will post 2.08 earnings per share for the current fiscal year.

CareTrust REIT Dividend Announcement

The business also recently announced a quarterly dividend, which was paid on Thursday, October 15th. Investors of record on Wednesday, September 30th were issued a $0.39 dividend. The ex-dividend date was Wednesday, September 30th. This represents a $1.56 annualized dividend and a yield of 4.1%. CareTrust REIT's dividend payout ratio (DPR) is currently 98.11%.

About CareTrust REIT

CareTrust REIT, Inc. is a real estate investment trust that owns and invests in healthcare-related properties, with a focus on skilled nursing facilities and senior housing. Its portfolio also includes assisted living and other properties that serve older adults and people requiring healthcare services. The company primarily works with healthcare operators through long-term property leases and other real estate investments. CareTrust's properties are located across the United States, and the company has expanded its investments into the United Kingdom.

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