PACS Group (NYSE:PACS) Shares Climb 3.6% - Time to Buy?

Key Points

• PACS Group shares rose 3.6% to about $42.80, though trading volume was sharply below average. Analysts maintain a “Moderate Buy” consensus, with an average price target of $58.80.
• The company exceeded quarterly expectations, reporting $0.63 EPS versus $0.54 expected and $1.43 billion in revenue versus a $1.41 billion consensus estimate.
• Insiders sold more than 1.1 million shares worth approximately $48.8 million over the past 90 days, although most sales were made under pre-arranged Rule 10b5-1 plans; insiders still own 70.1% of the company.

PACS Group, Inc. (NYSE:PACS - Get Free Report)'s share price shot up 3.6% on Monday. The stock traded as high as $42.43 and last traded at $42.8040. Approximately 106,703 shares were traded during mid-day trading, a decline of 88% from the average session volume of 894,762 shares. The stock had previously closed at $41.30.

Analyst Ratings Changes

PACS has been the topic of several recent analyst reports. Oppenheimer raised their price target on PACS Group from $48.00 to $57.00 and gave the company an "outperform" rating in a report on Monday, August 10th. Zacks Research downgraded PACS Group from a "strong-buy" rating to a "hold" rating in a research report on Wednesday, September 9th. Weiss Ratings downgraded shares of PACS Group from a "hold (c+)" rating to a "hold (c)" rating in a research report on Wednesday, August 5th. Royal Bank Of Canada raised their price target on shares of PACS Group from $52.00 to $57.00 and gave the company an "outperform" rating in a research report on Thursday, August 6th. Finally, Truist Financial set a $62.00 target price on PACS Group in a research note on Wednesday, September 2nd. Five analysts have rated the stock with a Buy rating and two have assigned a Hold rating to the stock. According to data from MarketBeat.com, PACS Group currently has an average rating of "Moderate Buy" and an average price target of $58.80.

PACS Group Price Performance

The stock has a fifty day moving average of $44.30 and a two-hundred day moving average of $39.43. The stock has a market capitalization of $6.71 billion, a price-to-earnings ratio of 24.67, a PEG ratio of 1.29 and a beta of -0.13. The company has a current ratio of 0.91, a quick ratio of 0.91 and a debt-to-equity ratio of 0.21.

PACS Group (NYSE:PACS - Get Free Report) last issued its quarterly earnings data on Tuesday, August 4th. The company reported $0.63 earnings per share (EPS) for the quarter, topping the consensus estimate 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 4.85% and a return on equity of 29.55%. As a group, equities research analysts forecast that PACS Group, Inc. will post 2.13 earnings per share for the current year.

Insider Buying and Selling at PACS Group

In related news, COO Joshua Jergensen sold 40,000 shares of the firm's stock in a transaction on Wednesday, August 12th. The shares were sold at an average price of $45.59, for a total transaction of $1,823,600.00. Following the completion of the transaction, the chief operating officer owned 2,536,320 shares of the company's stock, valued at $115,630,828.80. This trade represents a 1.55% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is available at this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Mark Hancock sold 155,682 shares of the company's stock in a transaction on Tuesday, September 15th. The stock was sold at an average price of $42.47, for a total value of $6,611,814.54. Following the transaction, the director owned 53,518,884 shares in the company, valued at $2,272,947,003.48. This trade represents a 0.29% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last 90 days, insiders have sold 1,107,655 shares of company stock valued at $48,779,328. 70.10% of the stock is owned by company insiders.

Institutional Investors Weigh In On PACS Group

A number of large investors have recently modified their holdings of PACS. Dimensional Fund Advisors LP raised its stake in shares of PACS Group by 370.2% in the 1st quarter. Dimensional Fund Advisors LP now owns 780,159 shares of the company's stock worth $25,051,000 after buying an additional 614,250 shares in the last quarter. 8 Knots Management LLC bought a new position in shares of PACS Group in the 4th quarter worth $23,421,000. BI Asset Management Fondsmaeglerselskab A S bought a new stake in shares of PACS Group in the first quarter worth about $6,762,000. Bank of New York Mellon Corp acquired a new position in PACS Group during the 2nd quarter worth approximately $8,196,000. Finally, Principal Financial Group Inc. bought a new position in PACS Group during the 1st quarter worth $3,171,000.

PACS Group Company Profile

PACS Group, Inc is a U.S. healthcare services company that operates skilled nursing and post-acute care facilities. Its facilities provide short-term rehabilitation, long-term skilled nursing, nursing care, and related clinical services for patients recovering from illness, injury, surgery, or hospitalization.

The company's broader care offerings may include assisted living, memory care, behavioral health, and other specialized post-acute services, depending on the facility and market.

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