Brookdale Senior Living (NYSE:BKD) Shares Down 15.9% Following Weak Earnings

Brookdale Senior Living Inc. (NYSE:BKD)’s stock price was down 15.9% during trading on Thursday after the company announced weaker than expected quarterly earnings. The company traded as low as $5.43 and last traded at $5.43. Approximately 711,218 shares traded hands during trading, a decline of 65% from the average daily volume of 2,012,469 shares. The stock had previously closed at $6.46.

The company reported ($0.22) earnings per share for the quarter, missing analysts’ consensus estimates of ($0.16) by ($0.06). Brookdale Senior Living had a negative net margin of 6.75% and a negative return on equity of 51.31%. The company had revenue of $784.17 million for the quarter, compared to analysts’ expectations of $785.61 million. During the same period last year, the company posted ($0.22) EPS.

Wall Street Analysts Forecast Growth

A number of equities research analysts have issued reports on the stock. Macquarie reissued an “outperform” rating and issued a $8.00 price target on shares of Brookdale Senior Living in a report on Wednesday, October 9th. Jefferies Financial Group began coverage on Brookdale Senior Living in a research note on Wednesday, October 16th. They issued a “buy” rating and a $8.00 target price on the stock. Royal Bank of Canada reaffirmed an “outperform” rating and set a $9.00 price target on shares of Brookdale Senior Living in a research report on Wednesday, October 9th. Finally, Bank of America lowered Brookdale Senior Living from a “neutral” rating to an “underperform” rating and cut their price objective for the stock from $7.75 to $6.00 in a research report on Monday, October 7th. Two investment analysts have rated the stock with a sell rating and three have given a buy rating to the stock. According to MarketBeat.com, the company has an average rating of “Hold” and a consensus price target of $7.75.

Institutional Inflows and Outflows

A number of hedge funds and other institutional investors have recently made changes to their positions in BKD. ProShare Advisors LLC boosted its stake in Brookdale Senior Living by 8.5% during the first quarter. ProShare Advisors LLC now owns 33,502 shares of the company’s stock worth $221,000 after acquiring an additional 2,637 shares in the last quarter. Mackenzie Financial Corp boosted its position in shares of Brookdale Senior Living by 9.2% in the 2nd quarter. Mackenzie Financial Corp now owns 31,971 shares of the company’s stock worth $218,000 after purchasing an additional 2,697 shares in the last quarter. Lazard Asset Management LLC grew its stake in shares of Brookdale Senior Living by 25.0% in the 1st quarter. Lazard Asset Management LLC now owns 13,966 shares of the company’s stock worth $92,000 after buying an additional 2,790 shares during the last quarter. Diversified Trust Co increased its position in Brookdale Senior Living by 7.7% during the 2nd quarter. Diversified Trust Co now owns 42,567 shares of the company’s stock valued at $291,000 after buying an additional 3,056 shares in the last quarter. Finally, Principal Financial Group Inc. raised its stake in Brookdale Senior Living by 15.8% during the second quarter. Principal Financial Group Inc. now owns 24,845 shares of the company’s stock valued at $170,000 after buying an additional 3,390 shares during the last quarter.

Brookdale Senior Living Stock Down 3.5 %

The company has a fifty day simple moving average of $6.42 and a 200 day simple moving average of $6.84. The company has a quick ratio of 0.79, a current ratio of 0.79 and a debt-to-equity ratio of 11.21. The firm has a market capitalization of $1.10 billion, a P/E ratio of -5.98 and a beta of 1.32.

About Brookdale Senior Living

Brookdale Senior Living Inc owns, manages, and operates senior living communities in the United States. It operates in three segments: Independent Living, Assisted Living and Memory Care, and Continuing Care Retirement Communities (CCRCs). The Independent Living segment owns or leases communities comprising independent and assisted living units in a single community that are primarily designed for middle to upper income seniors.