The Pennant Group (NASDAQ:PNTG) Posts Earnings Results, Beats Expectations By $0.01 EPS

Key Points

• The Pennant Group beat estimates with quarterly EPS of $0.32 (vs. $0.31 expected) and revenue of $285.36 million (vs. $280.75 million), with a net margin of 3.12% and ROE of 10.10%.
• Shares jumped ~3.4% to $32.53 on heavy volume (466,297 shares vs. avg. 272,442), leaving the company with a $1.14 billion market cap and a P/E of 39.19.
• Analysts carry an average "Moderate Buy" rating with a $37 average price target (7 Buys, 1 Hold), and institutional investors own about 85.88% of the stock amid recent inflows.

The Pennant Group (NASDAQ:PNTG - Get Free Report) posted its quarterly earnings results on Wednesday. The company reported $0.32 earnings per share for the quarter, beating analysts' consensus estimates of $0.31 by $0.01, FiscalAI reports. The Pennant Group had a net margin of 3.12% and a return on equity of 10.10%. The company had revenue of $285.36 million for the quarter, compared to the consensus estimate of $280.75 million.

The Pennant Group Stock Up 3.4%

Shares of The Pennant Group stock traded up $1.07 during trading on Wednesday, reaching $32.53. 466,297 shares of the company traded hands, compared to its average volume of 272,442. The company has a debt-to-equity ratio of 0.45, a current ratio of 1.14 and a quick ratio of 1.14. The Pennant Group has a 1-year low of $21.73 and a 1-year high of $35.00. The company has a 50 day moving average price of $31.53 and a 200-day moving average price of $29.31. The firm has a market capitalization of $1.14 billion, a PE ratio of 39.19, a P/E/G ratio of 2.13 and a beta of 1.28.

Institutional Inflows and Outflows

Institutional investors have recently modified their holdings of the stock. Quarry LP acquired a new position in shares of The Pennant Group during the 3rd quarter valued at $37,000. CIBC Private Wealth Group LLC lifted its position in shares of The Pennant Group by 651.8% during the 3rd quarter. CIBC Private Wealth Group LLC now owns 3,398 shares of the company's stock valued at $86,000 after acquiring an additional 2,946 shares during the period. Quadrant Capital Group LLC lifted its position in shares of The Pennant Group by 608.7% during the 4th quarter. Quadrant Capital Group LLC now owns 3,182 shares of the company's stock valued at $90,000 after acquiring an additional 2,733 shares during the period. Tower Research Capital LLC TRC lifted its position in shares of The Pennant Group by 161.6% during the 2nd quarter. Tower Research Capital LLC TRC now owns 3,987 shares of the company's stock valued at $119,000 after acquiring an additional 2,463 shares during the period. Finally, Sherbrooke Park Advisers LLC acquired a new position in shares of The Pennant Group during the 3rd quarter valued at $209,000. Institutional investors and hedge funds own 85.88% of the company's stock.

Analysts Set New Price Targets

PNTG has been the topic of a number of research analyst reports. Weiss Ratings upgraded shares of The Pennant Group from a "hold (c+)" rating to a "buy (b-)" rating in a research note on Monday, March 2nd. Royal Bank Of Canada raised their price target on shares of The Pennant Group from $39.00 to $41.00 and gave the company an "outperform" rating in a research note on Monday, March 2nd. Zacks Research downgraded shares of The Pennant Group from a "strong-buy" rating to a "hold" rating in a research note on Monday, January 12th. Wells Fargo & Company raised their price target on shares of The Pennant Group from $31.00 to $38.00 and gave the company an "overweight" rating in a research note on Wednesday, January 7th. Finally, Wall Street Zen downgraded shares of The Pennant Group from a "buy" rating to a "hold" rating in a research report on Saturday. Seven investment analysts have rated the stock with a Buy rating and one has given a Hold rating to the company's stock. Based on data from MarketBeat, the company currently has an average rating of "Moderate Buy" and an average price target of $37.00.

About The Pennant Group

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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