PACS Group (NYSE:PACS) Reaches New 12-Month High After Strong Earnings

Key Points

• PACS Group beat quarterly expectations: Earnings per share were $0.63 versus analysts’ $0.58 estimate, while revenue of $1.50 billion topped the $1.46 billion consensus.
• The shares reached a new 52-week high after the results, trading around $50.86 compared with the prior close of $46.68.
• Analyst sentiment is broadly positive: five analysts rate the stock Buy and two Hold, giving it a consensus “Moderate Buy” rating and an average price target of $58.80.

Shares of PACS Group, Inc. (NYSE:PACS - Get Free Report) hit a new 52-week high on Wednesday following a stronger than expected earnings report. The company traded as high as $50.68 and last traded at $50.86, with a volume of 425,100 shares traded. The stock had previously closed at $46.68.

The company reported $0.63 earnings per share for the quarter, topping analysts' consensus estimates of $0.58 by $0.05. The firm had revenue of $1.50 billion during the quarter, compared to analysts' expectations of $1.46 billion. PACS Group had a net margin of 4.85% and a return on equity of 29.55%.

Wall Street Analysts Forecast Growth

A number of analysts recently issued reports on the stock. Truist Financial set a $62.00 price objective on shares of PACS Group in a report on Wednesday, September 2nd. Oppenheimer boosted their target price on PACS Group from $48.00 to $57.00 and gave the stock an "outperform" rating in a research report on Monday, August 10th. Royal Bank Of Canada upped their target price on shares of PACS Group from $52.00 to $57.00 and gave the company an "outperform" rating in a research note on Thursday, August 6th. Zacks Research cut PACS Group from a "strong-buy" rating to a "hold" rating in a research note on Wednesday, September 9th. Finally, UBS Group increased their price target on shares of PACS Group from $57.00 to $60.00 and gave the company a "buy" rating in a research note on Thursday, August 6th. Five equities research analysts have rated the stock with a Buy rating and two have issued a Hold rating to the stock. According to MarketBeat, the stock presently has a consensus rating of "Moderate Buy" and an average target price of $58.80.

Insider Transactions at PACS Group

In other news, CEO Jason Murray sold 1,904 shares of the stock in a transaction on Thursday, October 29th. The shares were sold at an average price of $50.05, for a total transaction of $95,295.20. Following the completion of the sale, the chief executive officer owned 54,179,397 shares of the company's stock, valued at $2,711,678,819.85. This represents a 0.00% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Mark Hancock sold 4,280 shares of the business's stock in a transaction dated Thursday, October 29th. The stock was sold at an average price of $50.02, for a total value of $214,085.60. Following the transaction, the director directly owned 53,505,580 shares of the company's stock, valued at approximately $2,676,349,111.60. The trade was a 0.01% 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. Insiders have sold a total of 1,347,267 shares of company stock valued at $60,021,034 over the last 90 days. 70.10% of the stock is owned by company insiders.

Institutional Investors Weigh In On PACS Group

Several large investors have recently added to or reduced their stakes in PACS. Cantor Fitzgerald Investment Advisors L.P. purchased a new position in shares of PACS Group during the 3rd quarter worth approximately $1,920,000. Squarepoint Ops LLC increased its position in PACS Group by 94.7% during the second quarter. Squarepoint Ops LLC now owns 59,523 shares of the company's stock worth $2,538,000 after purchasing an additional 28,945 shares during the last quarter. VIRGINIA RETIREMENT SYSTEMS ET Al purchased a new position in shares of PACS Group in the 2nd quarter worth $1,893,000. Engineers Gate Manager LP purchased a new position in shares of PACS Group in the 2nd quarter worth about $1,132,000. Finally, Smith Group Asset Management LLC acquired a new position in PACS Group during the first quarter valued at approximately $771,000.

PACS Group Stock Up 10.0%

The company has a market capitalization of $8.13 billion, a PE ratio of 29.57, a price-to-earnings-growth ratio of 1.42 and a beta of -0.14. The firm has a 50-day simple moving average of $44.29 and a 200 day simple moving average of $39.85. The company has a debt-to-equity ratio of 0.21, a current ratio of 0.91 and a quick ratio of 0.91.

About PACS Group

PACS Group, Inc is a U.S.-based healthcare services company that owns and operates post-acute care facilities. Its platform focuses primarily on skilled nursing and transitional care, serving patients who require rehabilitation, recovery support, long-term care, and other services following hospitalization or acute medical treatment.

The company's operations also include assisted living, independent living, and behavioral health services in select locations. Through its facilities and related healthcare capabilities, PACS Group provides services such as nursing care, physical and occupational therapy, speech therapy, medical treatment, and support for patients with complex or extended care needs.

Founded in 2013 and headquartered in Farmington, Utah, PACS Group serves communities across multiple U.S.

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