The Ensign Group (NASDAQ:ENSG) Shares Gap Up on Strong Earnings

Key Points

• The Ensign Group reported a quarterly earnings per share (EPS) of $1.59, exceeding analysts' expectations of $1.54, alongside revenues of $1.23 billion, an 18.5% increase from the prior year.
• The stock price experienced a notable shift, opening at $150.05 after closing at $137.77, reflecting strong market reactions to the earnings announcement.
• A cut in dividend was announced, with a quarterly payment set at $0.0625, translating to a 0.17% dividend yield and a payout ratio of 4.73%.
• Macquarie has lowered their price target for the stock from $159.00 to $156.00 but maintains an "outperform" rating among a consensus of moderate buy ratings from analysts.

The Ensign Group, Inc. (NASDAQ:ENSG - Get Free Report) gapped up prior to trading on Friday following a better than expected earnings announcement. The stock had previously closed at $137.77, but opened at $150.05. The Ensign Group shares last traded at $149.22, with a volume of 107,929 shares traded.

The company reported $1.59 EPS for the quarter, beating analysts' consensus estimates of $1.54 by $0.05. The business had revenue of $1.23 billion during the quarter, compared to analyst estimates of $1.22 billion. The Ensign Group had a return on equity of 16.90% and a net margin of 6.99%. The Ensign Group's quarterly revenue was up 18.5% compared to the same quarter last year. During the same quarter in the prior year, the company posted $1.32 EPS.

The Ensign Group Cuts Dividend

The company also recently announced a quarterly dividend, which will be paid on Thursday, July 31st. Stockholders of record on Monday, June 30th will be given a $0.0625 dividend. This represents a $0.25 annualized dividend and a dividend yield of 0.17%. The ex-dividend date is Monday, June 30th. The Ensign Group's dividend payout ratio is currently 4.73%.

Analyst Ratings Changes

Separately, Macquarie reduced their price target on The Ensign Group from $159.00 to $156.00 and set an "outperform" rating for the company in a report on Friday, May 2nd. One research analyst has rated the stock with a hold rating and five have issued a buy rating to the company's stock. Based on data from MarketBeat.com, the stock presently has an average rating of "Moderate Buy" and an average target price of $163.50.

Insider Transactions at The Ensign Group

In other news, VP Beverly B. Wittekind sold 4,719 shares of the firm's stock in a transaction on Wednesday, June 18th. The stock was sold at an average price of $155.00, for a total value of $731,445.00. Following the transaction, the vice president directly owned 38,679 shares in the company, valued at $5,995,245. This trade represents a 10.87% decrease in their position. The transaction was disclosed in a filing with the SEC, which is available at this link. Also, CFO Suzanne D. Snapper sold 8,379 shares of The Ensign Group stock in a transaction on Monday, July 7th. The shares were sold at an average price of $148.21, for a total value of $1,241,851.59. Following the transaction, the chief financial officer owned 269,692 shares in the company, valued at $39,971,051.32. This trade represents a 3.01% decrease in their ownership of the stock. The disclosure for this sale can be found here. In the last quarter, insiders have sold 19,336 shares of company stock valued at $2,902,377. Corporate insiders own 3.90% of the company's stock.

Institutional Inflows and Outflows

Hedge funds have recently made changes to their positions in the stock. Wasatch Advisors LP raised its position in shares of The Ensign Group by 4.8% during the fourth quarter. Wasatch Advisors LP now owns 3,497,137 shares of the company's stock valued at $464,630,000 after buying an additional 159,691 shares during the last quarter. FMR LLC raised its position in shares of The Ensign Group by 4.3% during the fourth quarter. FMR LLC now owns 2,082,647 shares of the company's stock valued at $276,701,000 after buying an additional 86,676 shares during the last quarter. Northern Trust Corp raised its position in shares of The Ensign Group by 0.4% during the first quarter. Northern Trust Corp now owns 941,274 shares of the company's stock valued at $121,801,000 after buying an additional 3,344 shares during the last quarter. Van Berkom & Associates Inc. raised its position in shares of The Ensign Group by 14.1% during the first quarter. Van Berkom & Associates Inc. now owns 800,108 shares of the company's stock valued at $103,534,000 after buying an additional 99,147 shares during the last quarter. Finally, Wellington Management Group LLP raised its position in shares of The Ensign Group by 17.6% during the first quarter. Wellington Management Group LLP now owns 683,650 shares of the company's stock valued at $88,464,000 after buying an additional 102,089 shares during the last quarter. 96.12% of the stock is currently owned by institutional investors.

The Ensign Group Stock Performance

The firm's 50-day moving average price is $147.89 and its 200-day moving average price is $137.32. The stock has a market cap of $8.56 billion, a P/E ratio of 28.20, a PEG ratio of 1.62 and a beta of 1.03. The company has a debt-to-equity ratio of 0.07, a current ratio of 1.40 and a quick ratio of 1.40.

The Ensign Group Company Profile

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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest and most accurate reporting. This story was reviewed by MarketBeat's editorial team prior to publication. Please send any questions or comments about this story to contact@marketbeat.com.