The Pennant Group (NASDAQ:PNTG) Reaches New 52-Week High Following Strong Earnings

Key Points

• The Pennant Group hit a new 52-week high of $35.04 after reporting quarterly EPS of $0.32 (vs. $0.31 expected) and revenue of $285.36 million (vs. $280.75 million expected).
• Analysts have grown more bullish—several firms raised price targets (Wells Fargo to $38, RBC to $41) and MarketBeat shows a consensus rating of Moderate Buy with a $37 target.
• Institutional buying has been strong (notable increases by Wasatch and Wellington), leaving institutions with 85.88% ownership of the stock; Pennant’s market cap is about $1.21 billion with a P/E near 41.9.

The Pennant Group, Inc. (NASDAQ:PNTG - Get Free Report) reached a new 52-week high on Thursday following a better than expected earnings announcement. The stock traded as high as $35.04 and last traded at $34.8850, with a volume of 311741 shares changing hands. The stock had previously closed at $32.53.

The company reported $0.32 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $0.31 by $0.01. The Pennant Group had a net margin of 3.12% and a return on equity of 10.10%. The business had revenue of $285.36 million for the quarter, compared to analyst estimates of $280.75 million.

Wall Street Analysts Forecast Growth

A number of research analysts recently issued reports on the stock. Wells Fargo & Company raised their target price 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. Weiss Ratings raised shares of The Pennant Group from a "hold (c+)" rating to a "buy (b-)" rating in a report on Monday, March 2nd. Zacks Research downgraded shares of The Pennant Group from a "strong-buy" rating to a "hold" rating in a report on Monday, January 12th. Truist Financial increased their price target on shares of The Pennant Group from $34.00 to $36.00 and gave the company a "buy" rating in a report on Monday, April 13th. Finally, Royal Bank Of Canada increased their price target on shares of The Pennant Group from $39.00 to $41.00 and gave the company an "outperform" rating in a report on Monday, March 2nd. Seven analysts have rated the stock with a Buy rating and one has assigned a Hold rating to the stock. Based on data from MarketBeat, The Pennant Group has an average rating of "Moderate Buy" and a consensus target price of $37.00.

Institutional Trading of The Pennant Group

Institutional investors have recently made changes to their positions in the business. Fifth Third Bancorp boosted its position in The Pennant Group by 548.9% in the first quarter. Fifth Third Bancorp now owns 6,807 shares of the company's stock valued at $207,000 after buying an additional 5,758 shares in the last quarter. Wasatch Advisors LP lifted its position in shares of The Pennant Group by 143.2% during the first quarter. Wasatch Advisors LP now owns 1,418,687 shares of the company's stock worth $43,242,000 after purchasing an additional 835,227 shares in the last quarter. Caitong International Asset Management Co. Ltd lifted its position in shares of The Pennant Group by 154.2% during the fourth quarter. Caitong International Asset Management Co. Ltd now owns 1,182 shares of the company's stock worth $33,000 after purchasing an additional 717 shares in the last quarter. XTX Topco Ltd acquired a new position in shares of The Pennant Group during the fourth quarter worth approximately $243,000. Finally, Wellington Management Group LLP lifted its position in shares of The Pennant Group by 71.1% during the fourth quarter. Wellington Management Group LLP now owns 817,914 shares of the company's stock worth $23,024,000 after purchasing an additional 339,870 shares in the last quarter. 85.88% of the stock is currently owned by institutional investors and hedge funds.

The Pennant Group Price Performance

The company has a quick ratio of 1.14, a current ratio of 1.14 and a debt-to-equity ratio of 0.45. The company has a market capitalization of $1.21 billion, a price-to-earnings ratio of 41.89, a price-to-earnings-growth ratio of 2.15 and a beta of 1.28. The stock's 50-day moving average price is $31.53 and its 200-day moving average price is $29.37.

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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