Stock Traders Buy High Volume of Brookdale Senior Living Call Options (NYSE:BKD)

Key Points

• Brookdale Senior Living saw unusually heavy options activity, with investors buying 9,012 call options on Tuesday, roughly 1,427% above its normal daily volume.
• The stock fell 2.1% to $14.10, while the company also continues to trade below recent highs and carries a mixed valuation backdrop, including a negative earnings ratio.
• Analysts remain generally positive overall, with a Moderate Buy consensus and a target price of $17.60, even though Brookdale recently missed earnings and revenue estimates.

Brookdale Senior Living Inc. (NYSE:BKD - Get Free Report) saw some unusual options trading on Tuesday. Investors purchased 9,012 call options on the company. This is an increase of approximately 1,427% compared to the typical daily volume of 590 call options.

Brookdale Senior Living Trading Down 2.1%

BKD traded down $0.30 on Tuesday, hitting $14.10. 2,284,779 shares of the company were exchanged, compared to its average volume of 4,528,913. The firm has a 50-day moving average price of $13.77 and a two-hundred day moving average price of $13.74. Brookdale Senior Living has a twelve month low of $6.99 and a twelve month high of $17.09. The company has a market cap of $3.37 billion, a price-to-earnings ratio of -16.39 and a beta of 0.58.

Brookdale Senior Living (NYSE:BKD - Get Free Report) last issued its quarterly earnings results on Wednesday, May 6th. The company reported ($0.03) earnings per share (EPS) for the quarter, missing analysts' consensus estimates of ($0.02) by ($0.01). Brookdale Senior Living had a negative return on equity of 15,050.32% and a negative net margin of 6.51%.The firm had revenue of $764.86 million during the quarter, compared to analysts' expectations of $771.16 million. Equities analysts expect that Brookdale Senior Living will post -0.1 EPS for the current year.

Wall Street Analyst Weigh In

Several equities research analysts recently issued reports on BKD shares. Zacks Research downgraded Brookdale Senior Living from a "strong-buy" rating to a "hold" rating in a report on Tuesday, April 21st. Weiss Ratings cut Brookdale Senior Living from a "sell (d)" rating to a "sell (d-)" rating in a report on Wednesday, May 27th. Compass Point initiated coverage on Brookdale Senior Living in a research report on Monday, June 15th. They issued a "buy" rating and a $22.00 target price for the company. Finally, Stephens started coverage on shares of Brookdale Senior Living in a research note on Thursday, April 9th. They set an "overweight" rating and a $18.00 price target on the stock. One investment analyst has rated the stock with a Strong Buy rating, five have issued a Buy rating, one has assigned a Hold rating and one has assigned a Sell rating to the stock. According to MarketBeat, the company has an average rating of "Moderate Buy" and a consensus target price of $17.60.

Hedge Funds Weigh In On Brookdale Senior Living

A number of institutional investors and hedge funds have recently modified their holdings of the company. WCM Investment Management LLC acquired a new stake in Brookdale Senior Living in the first quarter valued at $171,681,000. Senator Investment Group LP acquired a new position in shares of Brookdale Senior Living during the 4th quarter worth about $36,786,000. Eversept Partners LP increased its holdings in shares of Brookdale Senior Living by 851.8% in the 1st quarter. Eversept Partners LP now owns 3,568,555 shares of the company's stock valued at $48,818,000 after acquiring an additional 3,193,626 shares during the last quarter. Mason Capital Management LLC purchased a new position in shares of Brookdale Senior Living in the 3rd quarter valued at about $20,971,000. Finally, Wellington Management Group LLP raised its position in shares of Brookdale Senior Living by 24.5% during the 3rd quarter. Wellington Management Group LLP now owns 11,609,307 shares of the company's stock worth $98,331,000 after acquiring an additional 2,282,151 shares in the last quarter.

About Brookdale Senior Living

Brookdale Senior Living Inc NYSE: BKD is one of the nation's largest operators of senior living communities, offering a full spectrum of living options that includes independent living, assisted living, memory care, continuing care retirement communities, respite care and skilled nursing services. The company emphasizes programs and amenities that support wellness, social engagement and overall quality of life for older adults.

Across the United States and Puerto Rico, Brookdale manages more than 700 communities serving tens of thousands of residents.

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