The Pennant Group, Inc. (NASDAQ:PNTG) Receives Average Recommendation of "Moderate Buy" from Analysts

Key Points

• The Pennant Group has a consensus analyst rating of “Moderate Buy”, with six buy ratings and two hold ratings across eight covering firms. The average 12-month price target is $39.00.
• Several major brokers raised their targets this week, including Truist to $42, Royal Bank of Canada to $42, and Wells Fargo to $41, while maintaining bullish ratings.
• The company also reported a Q1 earnings beat, posting EPS of $0.32 versus $0.31 expected and revenue of $285.36 million versus $280.75 million estimated, suggesting solid operating performance.

The Pennant Group, Inc. (NASDAQ:PNTG - Get Free Report) has earned a consensus rating of "Moderate Buy" from the eight research firms that are currently covering the company, Marketbeat.com reports. Two research analysts have rated the stock with a hold rating and six have given a buy rating to the company. The average 12 month price objective among brokerages that have issued a report on the stock in the last year is $39.00.

Several research analysts have weighed in on the company. Wells Fargo & Company lifted their target price on The Pennant Group from $38.00 to $41.00 and gave the stock an "overweight" rating in a report on Friday. Royal Bank Of Canada lifted their target price on The Pennant Group from $41.00 to $42.00 and gave the stock an "outperform" rating in a report on Friday. Truist Financial lifted their target price on The Pennant Group from $36.00 to $42.00 and gave the stock a "buy" rating in a report on Friday. Wall Street Zen lowered The Pennant Group from a "buy" rating to a "hold" rating in a report on Saturday, May 2nd. Finally, Zacks Research lowered The Pennant Group from a "strong-buy" rating to a "hold" rating in a report on Monday, January 12th.

Institutional Inflows and Outflows

Several hedge funds and other institutional investors have recently added to or reduced their stakes in the business. JPMorgan Chase & Co. raised its stake in shares of The Pennant Group by 288.4% in the 3rd quarter. JPMorgan Chase & Co. now owns 130,721 shares of the company's stock valued at $3,297,000 after purchasing an additional 97,061 shares during the period. Provident Investment Management Inc. acquired a new stake in shares of The Pennant Group in the 3rd quarter valued at about $6,685,000. Algert Global LLC raised its stake in shares of The Pennant Group by 392.5% in the 3rd quarter. Algert Global LLC now owns 421,702 shares of the company's stock valued at $10,635,000 after purchasing an additional 336,072 shares during the period. Tudor Investment Corp ET AL raised its stake in shares of The Pennant Group by 317.4% in the 3rd quarter. Tudor Investment Corp ET AL now owns 207,220 shares of the company's stock valued at $5,226,000 after purchasing an additional 157,574 shares during the period. Finally, Gallagher Capital Advisors LLC acquired a new stake in shares of The Pennant Group in the 3rd quarter valued at about $1,786,000. 85.88% of the stock is currently owned by institutional investors.

The Pennant Group Price Performance

NASDAQ:PNTG opened at $35.90 on Monday. The stock's fifty day simple moving average is $31.60 and its 200-day simple moving average is $29.45. The company has a quick ratio of 1.19, a current ratio of 1.19 and a debt-to-equity ratio of 0.42. The firm has a market capitalization of $1.25 billion, a P/E ratio of 42.24, a P/E/G ratio of 2.45 and a beta of 1.28. The Pennant Group has a 12-month low of $21.73 and a 12-month high of $37.54.

The Pennant Group (NASDAQ:PNTG - Get Free Report) last posted its earnings results on Wednesday, May 6th. The company reported $0.32 earnings per share for the quarter, topping the consensus estimate of $0.31 by $0.01. The firm had revenue of $285.36 million for the quarter, compared to analyst estimates of $280.75 million. The Pennant Group had a return on equity of 10.07% and a net margin of 2.96%. Equities research analysts expect that The Pennant Group will post 1.13 earnings per share for the current year.

Key Stories Impacting The Pennant Group

Here are the key news stories impacting The Pennant Group this week:

• Positive Sentiment: Truist raised its price target on The Pennant Group (PNTG) to $42 from $36 and reiterated a Buy rating, implying additional upside from current levels. Truist raises PNTG price target
• Positive Sentiment: Royal Bank of Canada increased its target to $42 from $41 and maintained an Outperform rating, adding to the bullish analyst momentum. RBC raises PNTG price target
• Positive Sentiment: Wells Fargo lifted its price target to $41 from $38 and kept an Overweight rating, signaling continued optimism about Pennant’s growth outlook. Wells Fargo raises PNTG price target
• Positive Sentiment: Q1 earnings and revenue topped expectations, with EPS of $0.32 versus the $0.31 consensus and revenue of $285.36 million versus estimates of $280.75 million, reinforcing the company’s execution. PNTG Q1 earnings beat estimates
• Neutral Sentiment: Recent coverage focused on integration progress from the Amedisys-related work, margin stability, and Southeast expansion, which supports the long-term story but is still more of a medium-term operational update. Pennant considers JVs, M&A as integration continues

The Pennant Group Company Profile

The Pennant Group NASDAQ: PNTG is a publicly traded holding company that provides specialized services to the asset management industry. Through its operating subsidiaries, the company delivers outsourced fund administration, securities lending, prime brokerage, and capital markets solutions designed to support hedge funds, private equity firms, mutual funds and other institutional investors. By leveraging a combination of technology platforms and industry expertise, The Pennant Group helps clients streamline middle- and back-office processes, enhance operational efficiency and manage regulatory requirements.

Key service offerings include fund accounting and reporting, trade settlement and reconciliation, risk monitoring, securities lending programs and execution support across a range of asset classes.

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