PACS Group (NYSE:PACS) Stock Falls 4.2% - Should You Sell?

Key Points

• PACS Group shares fell 4.2% to about $41.25 in thin trading, with volume down 84% from the average daily level.
• Analysts remain broadly positive, with five Buy ratings and two Holds producing a “Moderate Buy” consensus and an average price target of $58.80.
• The company exceeded quarterly expectations, reporting $0.63 in EPS versus $0.54 expected and $1.43 billion in revenue; however, insiders have sold more than 1.1 million shares worth approximately $48.8 million over the past 90 days.

PACS Group, Inc. (NYSE:PACS - Get Free Report)'s stock price traded down 4.2% on Tuesday. The company traded as low as $41.51 and last traded at $41.2480. 139,879 shares changed hands during trading, a decline of 84% from the average daily volume of 896,251 shares. The stock had previously closed at $43.06.

Wall Street Analyst Weigh In

PACS has been the subject of several research reports. Wall Street Zen cut shares of PACS Group from a "strong-buy" rating to a "buy" rating in a research note on Saturday, August 8th. Truist Financial set a $62.00 target price on PACS Group in a report on Wednesday, September 2nd. Weiss Ratings downgraded PACS Group from a "hold (c+)" rating to a "hold (c)" rating in a research report on Wednesday, August 5th. Oppenheimer upped their price target on PACS Group from $48.00 to $57.00 and gave the stock an "outperform" rating in a research note on Monday, August 10th. Finally, Royal Bank Of Canada raised their price objective on PACS Group from $52.00 to $57.00 and gave the stock an "outperform" rating in a report on Thursday, August 6th. Five equities research analysts have rated the stock with a Buy rating and two have given a Hold rating to the company. According to data from MarketBeat.com, the stock has a consensus rating of "Moderate Buy" and an average target price of $58.80.

PACS Group Trading Down 3.9%

The stock has a market capitalization of $6.55 billion, a PE ratio of 24.08, 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. The business's 50-day moving average is $44.26 and its two-hundred day moving average is $39.49.

PACS Group (NYSE:PACS - Get Free Report) last released its quarterly earnings data on Tuesday, August 4th. The company reported $0.63 EPS for the quarter, beating the consensus estimate of $0.54 by $0.09. PACS Group had a return on equity of 29.55% and a net margin of 4.85%.The company had revenue of $1.43 billion for the quarter, compared to analyst estimates of $1.41 billion. On average, analysts predict that PACS Group, Inc. will post 2.13 earnings per share for the current year.

Insider Activity at PACS Group

In related news, Director Mark Hancock sold 155,682 shares of the business's stock in a transaction that occurred on Tuesday, September 15th. The stock was sold at an average price of $42.47, for a total transaction of $6,611,814.54. Following the transaction, the director directly owned 53,518,884 shares of the company's stock, valued at approximately $2,272,947,003.48. The trade was a 0.29% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is accessible through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, COO Joshua Jergensen sold 40,000 shares of the company's stock in a transaction that occurred on Wednesday, September 16th. The stock was sold at an average price of $43.13, for a total value of $1,725,200.00. Following the completion of the transaction, the chief operating officer owned 2,496,320 shares of the company's stock, valued at approximately $107,666,281.60. This represents a 1.58% 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. In the last ninety days, insiders have sold 1,107,655 shares of company stock worth $48,779,328. 70.10% of the stock is currently owned by company insiders.

Institutional Inflows and Outflows

Several institutional investors and hedge funds have recently made changes to their positions in PACS. Tidal Investments LLC acquired a new stake in PACS Group during the 2nd quarter valued at $252,000. Engineers Gate Manager LP purchased a new position in PACS Group in the 2nd quarter valued at about $1,132,000. Integrated Wealth Concepts LLC acquired a new stake in shares of PACS Group during the second quarter valued at about $75,000. Squarepoint Ops LLC grew its stake in shares of PACS Group by 94.7% during the second quarter. Squarepoint Ops LLC now owns 59,523 shares of the company's stock valued at $2,538,000 after acquiring an additional 28,945 shares in the last quarter. Finally, Nykredit A S purchased a new stake in shares of PACS Group during the second quarter worth about $95,000.

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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