The Ensign Group (NASDAQ:ENSG) Trading Down 6% - Here's Why

Key Points

• The Ensign Group (NASDAQ:ENSG) fell about 6% intraday, trading as low as $159.20 after closing at $170.30, on heavier-than-average volume.
• Analyst sentiment was mixed: Wall Street Zen and Zacks Research downgraded the stock to Hold, while RBC kept an Outperform rating and raised its price target to $222; the consensus target is $216.75.
• The company recently beat quarterly EPS estimates, reporting $1.85 per share versus $1.79 expected, and revenue rose 18.4% year over year to $1.39 billion.

The Ensign Group, Inc. (NASDAQ:ENSG - Get Free Report) fell 6% during mid-day trading on Monday . The company traded as low as $159.20 and last traded at $160.0270. 480,359 shares were traded during trading, an increase of 14% from the average session volume of 422,266 shares. The stock had previously closed at $170.30.

Analyst Upgrades and Downgrades

Several brokerages have weighed in on ENSG. Wall Street Zen downgraded shares of The Ensign Group from a "buy" rating to a "hold" rating in a research note on Saturday. Royal Bank Of Canada reaffirmed an "outperform" rating and issued a $222.00 price objective (up from $206.00) on shares of The Ensign Group in a report on Monday, February 9th. Weiss Ratings reissued a "buy (b)" rating on shares of The Ensign Group in a research note on Tuesday, April 21st. Finally, Zacks Research cut shares of The Ensign Group from a "strong-buy" rating to a "hold" rating in a research note on Monday, April 6th. Four research analysts have rated the stock with a Buy rating and two have issued a Hold rating to the company's stock. According to MarketBeat, the company presently has an average rating of "Moderate Buy" and an average price target of $216.75.

The Ensign Group Stock Performance

The firm's 50 day moving average is $184.82 and its two-hundred day moving average is $187.77. The stock has a market capitalization of $9.10 billion, a PE ratio of 25.21, a P/E/G ratio of 1.67 and a beta of 0.68. The company has a debt-to-equity ratio of 0.06, a quick ratio of 1.56 and a current ratio of 1.56.

The Ensign Group (NASDAQ:ENSG - Get Free Report) last announced its quarterly earnings data on Thursday, April 30th. The company reported $1.85 EPS for the quarter, beating analysts' consensus estimates of $1.79 by $0.06. The Ensign Group had a net margin of 6.89% and a return on equity of 16.78%. The company had revenue of $1.39 billion for the quarter, compared to the consensus estimate of $1.40 billion. During the same period in the prior year, the firm posted $1.52 EPS. The company's quarterly revenue was up 18.4% compared to the same quarter last year. The Ensign Group has set its FY 2026 guidance at 7.480-7.620 EPS. As a group, research analysts predict that The Ensign Group, Inc. will post 6.79 earnings per share for the current year.

The Ensign Group Dividend Announcement

The company also recently announced a quarterly dividend, which was paid on Thursday, April 30th. Stockholders of record on Tuesday, March 31st were paid a $0.065 dividend. This represents a $0.26 annualized dividend and a dividend yield of 0.2%. The ex-dividend date was Tuesday, March 31st. The Ensign Group's dividend payout ratio (DPR) is 4.23%.

Insider Transactions at The Ensign Group

In other The Ensign Group news, Director Barry M. Smith sold 700 shares of the firm's stock in a transaction dated Thursday, April 2nd. The shares were sold at an average price of $196.65, for a total transaction of $137,655.00. Following the sale, the director directly owned 22,152 shares of the company's stock, valued at $4,356,190.80. This trade represents a 3.06% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director John O. Agwunobi sold 392 shares of the firm's stock in a transaction dated Monday, April 20th. The stock was sold at an average price of $199.97, for a total transaction of $78,388.24. Following the sale, the director directly owned 9,295 shares in the company, valued at $1,858,721.15. This represents a 4.05% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold a total of 2,592 shares of company stock valued at $478,246 in the last quarter. Insiders own 4.00% of the company's stock.

Institutional Investors Weigh In On The Ensign Group

Several hedge funds have recently modified their holdings of ENSG. Private Trust Co. NA lifted its position in The Ensign Group by 156.5% during the fourth quarter. Private Trust Co. NA now owns 159 shares of the company's stock valued at $28,000 after buying an additional 97 shares in the last quarter. Cedar Mountain Advisors LLC purchased a new stake in shares of The Ensign Group during the first quarter valued at approximately $32,000. Monetary Solutions Ltd purchased a new stake in shares of The Ensign Group during the fourth quarter valued at approximately $30,000. Northwestern Mutual Wealth Management Co. raised its stake in shares of The Ensign Group by 55.0% during the fourth quarter. Northwestern Mutual Wealth Management Co. now owns 172 shares of the company's stock valued at $30,000 after purchasing an additional 61 shares during the period. Finally, Bayban bought a new stake in shares of The Ensign Group in the fourth quarter worth $31,000. 96.12% of the stock is owned by institutional investors and hedge funds.

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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