The Ensign Group (NASDAQ:ENSG) Hits New 1-Year High - Still a Buy?

Key Points

• The Ensign Group (NASDAQ:ENSG) reached a new 12-month high of $173.62, closing at $171.26 with significant trading volume of 585,074 shares.
• Wall Street analysts show a positive outlook with five buy ratings and an average price target raised to $171.00, suggesting continued interest in the stock's growth potential.
• The company reported an EPS of $1.59 for the last quarter, surpassing expectations and demonstrating strong revenue growth of 18.5% year-over-year.

The Ensign Group, Inc. (NASDAQ:ENSG - Get Free Report)'s share price hit a new 52-week high on Monday . The stock traded as high as $173.62 and last traded at $171.26, with a volume of 585074 shares trading hands. The stock had previously closed at $169.24.

Analysts Set New Price Targets

ENSG has been the topic of a number of recent analyst reports. Macquarie lowered their price target on The Ensign Group from $159.00 to $156.00 and set an "outperform" rating on the stock in a research report on Friday, May 2nd. UBS Group reiterated a "buy" rating and set a $195.00 target price (up previously from $185.00) on shares of The Ensign Group in a research report on Thursday, August 14th. Stephens boosted their price target on shares of The Ensign Group from $165.00 to $170.00 and gave the stock an "overweight" rating in a report on Monday, July 28th. Finally, Truist Financial increased their price objective on shares of The Ensign Group from $155.00 to $165.00 and gave the company a "hold" rating in a report on Monday, July 28th. Five investment analysts have rated the stock with a Buy rating and one has assigned a Hold rating to the company. According to data from MarketBeat.com, the stock has an average rating of "Moderate Buy" and a consensus price target of $171.00.

The Ensign Group Stock Performance

The company has a quick ratio of 1.41, a current ratio of 1.41 and a debt-to-equity ratio of 0.07. The stock has a 50-day moving average of $154.34 and a 200 day moving average of $141.85. The stock has a market cap of $9.91 billion, a PE ratio of 31.18, a P/E/G ratio of 1.98 and a beta of 1.02.

The Ensign Group (NASDAQ:ENSG - Get Free Report) last issued its earnings results on Thursday, July 24th. The company reported $1.59 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $1.54 by $0.05. The Ensign Group had a return on equity of 16.92% and a net margin of 6.99%.The business had revenue of $1.23 billion during the quarter, compared to the consensus estimate of $1.22 billion. During the same period last year, the company earned $1.32 EPS. The company's revenue for the quarter was up 18.5% on a year-over-year basis. The Ensign Group has set its FY 2025 guidance at 6.340-6.460 EPS. Equities analysts predict that The Ensign Group, Inc. will post 5.59 EPS for the current fiscal year.

The Ensign Group Cuts Dividend

The company also recently declared a quarterly dividend, which was paid on Thursday, July 31st. Stockholders of record on Monday, June 30th were paid a $0.0625 dividend. The ex-dividend date of this dividend was Monday, June 30th. This represents a $0.25 annualized dividend and a dividend yield of 0.1%. The Ensign Group's dividend payout ratio is 4.54%.

Insider Transactions at The Ensign Group

In other news, VP Beverly B. Wittekind sold 4,719 shares of The Ensign Group stock in a transaction that occurred on Wednesday, June 18th. The shares were sold at an average price of $155.00, for a total transaction of $731,445.00. Following the sale, the vice president owned 38,679 shares of the company's stock, valued at approximately $5,995,245. The trade was a 10.87% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this link. Also, Director Barry M. Smith sold 700 shares of the company's stock in a transaction that occurred on Tuesday, July 1st. The shares were sold at an average price of $153.48, for a total value of $107,436.00. Following the completion of the transaction, the director owned 27,852 shares in the company, valued at $4,274,724.96. This represents a 2.45% decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders sold 13,798 shares of company stock worth $2,080,733 in the last 90 days. Insiders own 3.90% of the company's stock.

Hedge Funds Weigh In On The Ensign Group

A number of hedge funds have recently modified their holdings of ENSG. Cambridge Investment Research Advisors Inc. raised its holdings in The Ensign Group by 23.2% in the 1st quarter. Cambridge Investment Research Advisors Inc. now owns 8,298 shares of the company's stock valued at $1,074,000 after buying an additional 1,564 shares during the period. QRG Capital Management Inc. raised its stake in shares of The Ensign Group by 1.6% in the 1st quarter. QRG Capital Management Inc. now owns 5,825 shares of the company's stock valued at $754,000 after acquiring an additional 92 shares during the period. KBC Group NV lifted its holdings in shares of The Ensign Group by 10.7% in the 1st quarter. KBC Group NV now owns 2,506 shares of the company's stock worth $324,000 after acquiring an additional 243 shares during the last quarter. New York State Teachers Retirement System boosted its position in shares of The Ensign Group by 0.8% during the 1st quarter. New York State Teachers Retirement System now owns 36,529 shares of the company's stock worth $4,727,000 after purchasing an additional 300 shares during the period. Finally, SG Americas Securities LLC acquired a new stake in The Ensign Group in the 1st quarter valued at approximately $343,000. 96.12% of the stock is currently owned by hedge funds and other institutional investors.

About The Ensign Group

The Ensign Group, Inc provides skilled nursing, senior living, and rehabilitative services. It operates through two segments: Skilled Services and Standard Bearer. The company's Skilled Services segment engages in the operation of skilled nursing facilities and rehabilitation therapy services for patients with chronic conditions, prolonged illness, and the elderly; and offers nursing facilities including specialty care, such as on-site dialysis, ventilator care, cardiac, and pulmonary management, as well as standard services comprising room and board, special nutritional programs, social services, recreational activities, entertainment, and other services.