Royal Bank Of Canada Forecasts Strong Price Appreciation for The Pennant Group (NASDAQ:PNTG) Stock

Key Points

• Royal Bank of Canada raised its target price on The Pennant Group to $42 (from $41) and kept an "outperform" rating, implying roughly 17.7% upside from the current share price.
• Analyst sentiment is broadly positive—seven Buy ratings and one Hold yield a consensus "Moderate Buy" with a consensus target of $39, and peers like Wells Fargo and Truist have also recently raised targets and ratings.
• The stock trades around $35.69 (market cap ~$1.25B) with a P/E of 42, and the company slightly beat the latest quarter's estimates (EPS $0.32 vs. $0.31; revenue $285.36M vs. $280.75M).

The Pennant Group (NASDAQ:PNTG - Get Free Report) had its target price raised by Royal Bank Of Canada from $41.00 to $42.00 in a research note issued on Friday,Benzinga reports. The firm currently has an "outperform" rating on the stock. Royal Bank Of Canada's target price indicates a potential upside of 17.68% from the stock's current price.

PNTG has been the subject of a number of other reports. Wells Fargo & Company boosted their price objective on The Pennant Group from $38.00 to $41.00 and gave the company an "overweight" rating in a research note on Friday. Wall Street Zen downgraded shares of The Pennant Group from a "buy" rating to a "hold" rating in a report on Saturday, May 2nd. Weiss Ratings upgraded shares of The Pennant Group from a "hold (c+)" rating to a "buy (b-)" rating in a research report on Monday, March 2nd. Zacks Research cut shares of The Pennant Group from a "strong-buy" rating to a "hold" rating in a research note on Monday, January 12th. Finally, Truist Financial lifted their target price on shares of The Pennant Group from $34.00 to $36.00 and gave the company a "buy" rating in a research note on Monday, April 13th. Seven investment analysts have rated the stock with a Buy rating and one has given a Hold rating to the stock. According to MarketBeat.com, the stock has a consensus rating of "Moderate Buy" and a consensus target price of $39.00.

The Pennant Group Stock Performance

The Pennant Group stock traded down $0.04 during trading on Friday, reaching $35.69. The company had a trading volume of 181,633 shares, compared to its average volume of 274,614. The firm has a market capitalization of $1.25 billion, a price-to-earnings ratio of 42.00, a price-to-earnings-growth ratio of 2.22 and a beta of 1.28. The company has a current ratio of 1.14, a quick ratio of 1.14 and a debt-to-equity ratio of 0.45. The firm's 50-day simple moving average is $31.60 and its 200 day simple moving average is $29.45. The Pennant Group has a 52 week low of $21.73 and a 52 week high of $37.54.

The Pennant Group (NASDAQ:PNTG - Get Free Report) last released its quarterly earnings results on Wednesday, May 6th. The company reported $0.32 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.31 by $0.01. The business had revenue of $285.36 million during the quarter, compared to analyst estimates of $280.75 million. The Pennant Group had a return on equity of 10.35% and a net margin of 2.96%. Sell-side analysts forecast that The Pennant Group will post 1.13 earnings per share for the current fiscal year.

Hedge Funds Weigh In On The Pennant Group

A number of hedge funds and other institutional investors have recently modified their holdings of PNTG. Caitong International Asset Management Co. Ltd increased its holdings in The Pennant Group by 154.2% in the 4th quarter. Caitong International Asset Management Co. Ltd now owns 1,182 shares of the company's stock valued at $33,000 after acquiring an additional 717 shares during the last quarter. Parallel Advisors LLC boosted its holdings in shares of The Pennant Group by 1,186.8% during the 1st quarter. Parallel Advisors LLC now owns 1,364 shares of the company's stock valued at $42,000 after purchasing an additional 1,258 shares during the last quarter. Quarry LP bought a new position in shares of The Pennant Group during the 3rd quarter valued at about $37,000. State of Alaska Department of Revenue purchased a new position in shares of The Pennant Group during the third quarter valued at about $54,000. Finally, Quadrant Capital Group LLC grew its position in shares of The Pennant Group by 608.7% during the fourth quarter. Quadrant Capital Group LLC now owns 3,182 shares of the company's stock valued at $90,000 after purchasing an additional 2,733 shares in the last quarter. Institutional investors own 85.88% of the company's stock.

The Pennant Group Company Profile

The Pennant Group NASDAQ: PNTG is a publicly traded holding company that provides specialized services to the asset management industry. Through its operating subsidiaries, the company delivers outsourced fund administration, securities lending, prime brokerage, and capital markets solutions designed to support hedge funds, private equity firms, mutual funds and other institutional investors. By leveraging a combination of technology platforms and industry expertise, The Pennant Group helps clients streamline middle- and back-office processes, enhance operational efficiency and manage regulatory requirements.

Key service offerings include fund accounting and reporting, trade settlement and reconciliation, risk monitoring, securities lending programs and execution support across a range of asset classes.

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