The Ensign Group, Inc. (NASDAQ:ENSG) Given Average Recommendation of "Moderate Buy" by Brokerages

Key Points

• Analyst sentiment is moderately positive: The Ensign Group has a consensus “Moderate Buy” rating, with four buys and two holds. The average 12-month price target is $216.25, compared with the stock’s reported price of $181.65.
• Quarterly results exceeded expectations: The company reported earnings of $1.92 per share, beating estimates of $1.80, while revenue rose 16.7% year over year to $1.44 billion.
• Institutional ownership is substantial: Institutional investors own 96.12% of the shares, with BlackRock and other major firms recently establishing or adding significant positions. Two directors sold shares under pre-arranged Rule 10b5-1 plans.

Shares of The Ensign Group, Inc. (NASDAQ:ENSG - Get Free Report) have earned an average rating of "Moderate Buy" from the six brokerages that are covering the stock, MarketBeat reports. Two analysts have rated the stock with a hold rating and four have issued a buy rating on the company. The average 1-year target price among brokerages that have updated their coverage on the stock in the last year is $216.25.

Several equities analysts have weighed in on ENSG shares. Weiss Ratings downgraded The Ensign Group from a "buy (b)" rating to a "buy (b-)" rating in a research report on Tuesday, June 16th. Wall Street Zen lowered shares of The Ensign Group from a "buy" rating to a "hold" rating in a research note on Saturday, July 25th. Royal Bank Of Canada restated an "outperform" rating and issued a $228.00 price objective on shares of The Ensign Group in a report on Tuesday, July 28th. Finally, Truist Financial increased their target price on shares of The Ensign Group from $202.00 to $207.00 and gave the stock a "hold" rating in a report on Thursday, July 30th.

Insider Buying and Selling at The Ensign Group

In other news, Director John O. Agwunobi sold 392 shares of The Ensign Group stock in a transaction dated Monday, July 20th. The stock was sold at an average price of $171.06, for a total value of $67,055.52. Following the completion of the transaction, the director owned 9,503 shares in the company, valued at approximately $1,625,583.18. This trade represents a 3.96% decrease in their position. The sale was disclosed in a filing with the SEC, which can be accessed through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Barry M. Smith sold 700 shares of the company's stock in a transaction that occurred on Tuesday, June 2nd. The stock was sold at an average price of $164.28, for a total transaction of $114,996.00. Following the sale, the director owned 21,352 shares in the company, valued at $3,507,706.56. The trade was a 3.17% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders own 4.00% of the company's stock.

Institutional Inflows and Outflows

A number of institutional investors have recently added to or reduced their stakes in the company. BlackRock Inc. purchased a new stake in shares of The Ensign Group in the 2nd quarter valued at approximately $937,218,000. Norges Bank purchased a new stake in shares of The Ensign Group during the 4th quarter worth $134,660,000. Turtle Creek Asset Management Inc. purchased a new stake in shares of The Ensign Group during the 3rd quarter worth $78,840,000. Bank of New York Mellon Corp acquired a new position in shares of The Ensign Group during the second quarter worth $65,470,000. Finally, Paradigm Capital Management Inc. NY acquired a new position in shares of The Ensign Group during the second quarter worth $54,742,000. Hedge funds and other institutional investors own 96.12% of the company's stock.

The Ensign Group Stock Down 0.1%

NASDAQ:ENSG opened at $181.65 on Friday. The Ensign Group has a 52 week low of $141.58 and a 52 week high of $218.00. The stock's fifty day moving average is $168.19 and its two-hundred day moving average is $184.13. The stock has a market capitalization of $10.59 billion, a price-to-earnings ratio of 28.47, a price-to-earnings-growth ratio of 1.75 and a beta of 0.68. The company has a quick ratio of 1.21, a current ratio of 1.21 and a debt-to-equity ratio of 0.06.

The Ensign Group (NASDAQ:ENSG - Get Free Report) last issued its quarterly earnings data on Monday, July 27th. The company reported $1.92 earnings per share for the quarter, beating analysts' consensus estimates of $1.80 by $0.12. The business had revenue of $1.44 billion during the quarter, compared to analysts' expectations of $1.44 billion. The Ensign Group had a return on equity of 16.75% and a net margin of 6.90%.The company's revenue was up 16.7% on a year-over-year basis. During the same period in the previous year, the firm posted $1.59 earnings per share. The Ensign Group has set its FY 2026 guidance at 7.750-7.850 EPS. Research analysts anticipate that The Ensign Group will post 6.93 EPS for the current year.

The Ensign Group Announces Dividend

The business also recently announced a quarterly dividend, which was paid on Friday, July 31st. Investors of record on Tuesday, June 30th were issued a $0.065 dividend. The ex-dividend date was Tuesday, June 30th. This represents a $0.26 dividend on an annualized basis and a yield of 0.1%. The Ensign Group's dividend payout ratio (DPR) is 4.08%.

About The Ensign Group

The Ensign Group, Inc is a diversified provider of post-acute healthcare services in the United States, operating a network of skilled nursing, assisted living, independent living, home health and hospice care centers. The company's model emphasizes integrated care by employing multidisciplinary teams—including nursing staff, therapists and physicians—to deliver personalized rehabilitation and long-term care services for seniors and other patients recovering from injury, illness or surgery.

Through its owned and managed centers, The Ensign Group offers a broad spectrum of rehabilitation services such as physical, occupational and speech therapy.

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