Genesis Healthcare Inc. [GEN] is -69.20% lower this YTD. Is it still time to buy?

Genesis Healthcare Inc. [NYSE: GEN] gained 0.24% on the last trading session, reaching $0.51 price per share at the time. The company report on October 14, 2020 that LTC ACO Receives Positive Reconciliation and Settlement Under the Medicare Shared Savings Program (MSSP).

LTC ACO, the first long-term care sponsored Accountable Care Organization (“ACO”) in the United States and a subsidiary of Genesis HealthCare (Genesis) (NYSE:GEN), recently received a positive reconciliation and settlement under the Medicare Shared Savings Program (“MSSP”) for the 2019 performance year and as a result, generated shared savings for the second consecutive year.

During 2019, the Company managed approximately 5,800 Medicare fee-for-service beneficiaries under the MSSP with annualized Medicare spend of more than $160 million. In 2019, the MSSP required the LTC ACO to save at least 2.8% of the total Medicare spend under management to share in up to 62.5% (50% applicable to the first half of the year and 75% for the second) of the savings with Centers for Medicare and Medicaid Services (CMS). In August 2020, CMS notified Genesis that it reached the minimum savings rate set by CMS required for gain share. As a result, in the third quarter of 2020, the LTC ACO will recognize MSSP shared savings of approximately $18.8 million and income of approximately $17.0 million net of participating provider distributions.

Genesis Healthcare Inc. represents 111.23 million in outstanding shares, while the company has a total market value of $84.85 million with the latest information. GEN stock price has been found in the range of $0.503 to $0.5148.

If compared to the average trading volume of 1.14M shares, GEN reached a trading volume of 2923031 in the most recent trading day, which is why market watchdogs consider the stock to be active.

Here is what top equities market gurus are saying about Genesis Healthcare Inc. [GEN]:

Stifel have made an estimate for Genesis Healthcare Inc. shares, keeping their opinion on the stock as Buy, with their previous recommendation back on November 29, 2018. While these analysts kept the previous recommendation, RBC Capital Mkts raised their target price from $3 to $3.50. The new note on the price target was released on November 21, 2016, representing the official price target for Genesis Healthcare Inc. stock. Previously, the target price had yet another drop from $5 to $3, while RBC Capital Mkts kept a Outperform rating on GEN stock.

The Average True Range (ATR) for Genesis Healthcare Inc. is set at 0.04, with the Price to Sales ratio for GEN stock in the period of the last 12 months amounting to 0.02. Price to Free Cash Flow for GEN in the course of the last twelve months was 0.32 with Quick ratio for the last quarter at 0.90.

Trading performance analysis for GEN stock

Genesis Healthcare Inc. [GEN] fell into the red zone at the end of the last week, falling into a negative trend and dropping by -3.31. With this latest performance, GEN shares dropped by -21.00% in over the last four-week period, additionally sinking by -34.65% over the last 6 months – not to mention a drop of -68.42% in the past year of trading.

Overbought and oversold stocks can be easily traced with the Relative Strength Index (RSI), where an RSI result of over 70 would be overbought, and any rate below 30 would indicate oversold conditions. An RSI rate of 50 would represent a neutral market momentum. The current RSI for GEN stock in for the last two-week period is set at 27.05, with the RSI for the last a single of trading hit 25.27, and the three-weeks RSI is set at 32.13 for Genesis Healthcare Inc. [GEN]. The present Moving Average for the last 50 days of trading for this stock 0.6146, while it was recorded at 0.5146 for the last single week of trading, and 0.9389 for the last 200 days.

Genesis Healthcare Inc. [GEN]: A deeper dive into fundamental analysis

Operating Margin for any stock indicates how profitable investing would be, and Genesis Healthcare Inc. [GEN] shares currently have an operating margin of +1.12 and a Gross Margin at +4.29. Genesis Healthcare Inc.’s Net Margin is presently recorded at +0.32.

Return on Total Capital for GEN is now 1.64, given the latest momentum, and Return on Invested Capital for the company is 0.43. Additionally, GEN Total Debt to Total Capital is recorded at 120.47, with Total Debt to Total Assets ending up at 88.70.

Reflecting on the efficiency of the workforce at the company, Genesis Healthcare Inc. [GEN] managed to generate an average of $266 per employee. Receivables Turnover for the company is 7.67 with a Total Asset Turnover recorded at a value of 0.95.Genesis Healthcare Inc.’s liquidity data is similarly interesting compelling, with a Quick Ratio of 0.90 and a Current Ratio set at 0.90.

Genesis Healthcare Inc. [GEN]: An earnings per share (EPS) analysis

With the latest financial reports released by the company, Genesis Healthcare Inc. posted 0.4/share EPS, while the average EPS was predicted by analysts to be reported at -0.12/share. When compared, the two values demonstrate that the company surpassed the estimates by a Surprise Factor of 433.30%. The progress of the company may be observed through the prism of EPS growth rate, while Wall Street analysts are focusing on predicting the 5-year EPS growth rate for GEN. When it comes to the mentioned value, analysts are expecting to see the 5-year EPS growth rate for Genesis Healthcare Inc. go to 10.00%.

An analysis of insider ownership at Genesis Healthcare Inc. [GEN]

There are presently around $13 million, or 25.80% of GEN stock, in the hands of institutional investors. The top three institutional holders of GEN stocks are: VANGUARD GROUP INC with ownership of 5,438,999, which is approximately 43.449% of the company’s market cap and around 8.60% of the total institutional ownership; RENAISSANCE TECHNOLOGIES LLC, holding 4,312,063 shares of the stock with an approximate value of $2.18 million in GEN stocks shares; and V3 CAPITAL MANAGEMENT, L.P., currently with $1.69 million in GEN stock with ownership of nearly -34.72% of the company’s market capitalization.

Positions in Genesis Healthcare Inc. stocks held by institutional investors increased at the end of August and at the time of the August reporting period, where 26 institutional holders increased their position in Genesis Healthcare Inc. [NYSE:GEN] by around 3,764,543 shares. Additionally, 41 investors decreased positions by around 12,059,927 shares, while 14 investors held positions by with 10,373,393 shares. The mentioned changes placed institutional holdings at 26,197,863 shares, according to the latest SEC report filing. GEN stock had 15 new institutional investments in for a total of 1,406,364 shares, while 23 institutional investors sold positions of 2,271,072 shares during the same period.

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