Top Reasons Why Brookdale Senior Living Inc. (BKD) Can Satisfy Your Appetite Better

It has been reported that multiple insider activity took place at Brookdale Senior Living Inc. (BKD). Director Warren Denise Wilder acquired 5,000 shares for $24,401 in transaction occurred on 2019/03/04. After making this transaction, Director owns a direct stake of 4 shares, worth $166,659, as per the last closing price. On 2019/03/01 BROMLEY MARCUS E, Director at BKD, purchased 3,695 shares at an average price of $6.74 per share. The new stake is valued at $416,398.

Director, Warren Denise Wilder had invested in 5,000 shares for $19,401 through a trade on 2019/03/01. Following this activity, the insider holds 1 shares worth $132,509 as of recent close.

Vanguard Small-Cap Index Fund revealed as top hedge fund owner in Brookdale Senior Living Inc. (BKD) with a stake of over 4.79M BKD shares as of September 29, with a market value of approx. $47.1M as of today. The second largest holder, Vanguard Total Stock Market Index Fund, with 4.72M shares which equates to $46.36M worth of the stock. At third is Invesco Small Cap Value Fd, which stood pat with 4.53M shares, a 2.37% position in Brookdale Senior Living Inc., worth $30.36M. The insider holding in stood at 1.8% while institutions hold 0%.

Brookdale Senior Living Inc. (NYSE:BKD) rose 0% in recent trade and currently has a stock-market value of $1.28B. The shares finished at $6.83, after trading as low as $6.785 earlier in the session. It hit an intraday high Friday at $6.92. Trading activity significantly weakened as the volume at ready counter decreased to 1,454,372 shares versus 1,532,550 in average daily trading volume over the past 20 days. So far this year, the volume has averaged about 2,080,222 shares. The stock is now 12.34% above against its bear-market low of $6.08 on December 26, 2018. It has retreated -47.88% since it’s 52-week high of $10.1 reached in July. Now the market price is up 5.24% on the year and up 1.94% YTD.

BKD stock’s 50 day simple moving average (SMA 50) price is $7.05 and its 200-day simple moving average (SMA 200) price is $8.25. The company’s stock currently has a total float of 182.54M shares. Its weekly volatility is hovering around 1.92% and felt 2.71% volatility in price over a month. On the upside, the share price will test short term resistance at around $6.91. On a downside, the stock is likely to find some support, which begins at $6.77. The failure to get near-term support could push it to $6.71.

It had seen a change in price target from analysts at Stifel, who reiterated the stock at Hold on August 07 but moved PT from $9 to $8. Analysts at RBC Capital Mkts, shed their positive views on February 27 by lowering it fromOutperform to Sector Perform. The stock lost favor of Stifel analysts who expressed their lack of confidence in it using a downgrade from Buy to Hold on February 23. RBC Capital Mkts, reiterated their call for Outperform, on November 08. On the other hand, they had set new target price to $13 versus $16.

Also, it is trading at rather expensive levels at just over 1.26x price/book and 0.28x price/sales. Compared to others, Brookdale Senior Living Inc. is in a different league with regards to profitability, having net margins of -11.7%. To put some perspective around this, the industry’s average net margin is 3.73%. BKD’s ROE is -54%, which is also considerably worse than the industry’s ROE of -9.67%. It’s also very liquid in the near term, with a current ratio of 1. The stock has a debt/capital of 4.43.

Shares of BKD have dropped -15.9% since the company’s most recent earnings report. Over the past 12 fiscal quarters, Brookdale Senior Living Inc. (NYSE:BKD) has topped consensus earnings estimates in 5 quarters (41%), missed earnings in 7 quarters (58%), whereas at 0 occasion EPS met analyst expectations. BKD last reported earnings that exceeded expectations. The company raked in $0.7 per share, -100.19% change on the same period last year. That was better than consensus for -$0.27. Revenue for the recent quarter stood at $1.07 billion, down -8% on last year and below the $1.07 billion predicted by analysts. For this quarter, Wall Street analysts forecast revenue in a range of $1.04 billion to $1.06 billion, which should be compared with $1.08 billion generated last year. EPS is seen in a range of -$0.39 to -$0.12, against the -$0.24 reported a year ago.