Brookdale Senior Living Inc. [BKD] Stock trading around $5.12 per share: What’s Next?



Brookdale Senior Living Inc. [NYSE: BKD] gained 0.79% or 0.04 points to close at $5.12 with a heavy trading volume of 1946877 shares. The company report on December 21, 2021 that Brookdale Completes $100 Million Refinancing And Prepays Substantially All Remaining 2022 Debt Maturities.

Brookdale Senior Living Inc. (NYSE: BKD) (“Brookdale” or “the Company”) announced today that it completed another significant financing transaction totaling $100 million. In addition, the Company prepaid substantially all of its remaining 2022 maturities, which will save several million dollars in annual interest expense.

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On December 20, 2021, the Company obtained $100 million of mortgage debt from Capital One, National Association. CBRE Capital Markets acted as financial advisor to Brookdale in securing the loan. The debt has an initial three-year term and two one-year renewal options, exercisable subject to certain performance criteria. The debt is lower-leverage, carries a variable interest rate of 2.15% over SOFR, and is interest only for the first three years. The first priority, non-recourse mortgages were secured by 11 senior living communities, which had previously secured Fannie Mae loans of $143 million maturing in first quarter 2022.

It opened the trading session at $4.98, the shares rose to $5.22 and dropped to $4.98, the range by which the price of stock traded the whole day. The daily chart for BKD points out that the company has recorded -37.33% loss over the past six months. However, it is still -23.37% lower than its most recent low trading price.

If we look at the average trading volume of 2.69M shares, BKD reached to a volume of 1946877 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 Brookdale Senior Living Inc. [BKD]:

Based on careful and fact-backed analyses by Wall Street experts, the current consensus on the target price for BKD shares is $8.18 per share. Analysis on target price and performance of stocks is usually carefully studied by market experts, and the current Wall Street consensus on BKD stock is a recommendation set at 2.50. This rating represents a strong Buy recommendation, on the scale from 1 to 5, where 5 would mean strong sell, 4 represents Sell, 3 is Hold, and 2 indicates Buy.

Stifel have made an estimate for Brookdale Senior Living Inc. shares, keeping their opinion on the stock as Buy, with their previous recommendation back on June 23, 2021. While these analysts kept the previous recommendation, Barclays dropped their target price from $5 to $12. The new note on the price target was released on June 11, 2021, representing the official price target for Brookdale Senior Living Inc. stock. Previously, the target price had yet another raise to $4.50, while Jefferies analysts kept a Hold rating on BKD stock.

The Average True Range (ATR) for Brookdale Senior Living Inc. is set at 0.25, with the Price to Sales ratio for BKD stock in the period of the last 12 months amounting to 0.32. The Price to Book ratio for the last quarter was 1.20, with the Price to Cash per share for the same quarter was set at 3.46.

Trading performance analysis for BKD stock

Brookdale Senior Living Inc. [BKD] fell into the red zone at the end of the last week, falling into a negative trend and dropping by -0.19. With this latest performance, BKD shares dropped by -12.63% in over the last four-week period, additionally sinking by -37.33% over the last 6 months – not to mention a rise of 17.16% 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 BKD stock in for the last two-week period is set at 37.13, with the RSI for the last a single of trading hit 39.35, and the three-weeks RSI is set at 37.51 for Brookdale Senior Living Inc. [BKD]. The present Moving Average for the last 50 days of trading for this stock 6.16, while it was recorded at 5.12 for the last single week of trading, and 6.82 for the last 200 days.

Brookdale Senior Living Inc. [BKD]: A deeper dive into fundamental analysis

Operating Margin for any stock indicates how profitable investing would be, and Brookdale Senior Living Inc. [BKD] shares currently have an operating margin of -6.26 and a Gross Margin at +5.91. Brookdale Senior Living Inc.’s Net Margin is presently recorded at +2.39.

Return on Total Capital for BKD is now -3.35, given the latest momentum, and Return on Invested Capital for the company is 1.37. Return on Equity for this stock inclined to 10.96, with Return on Assets sitting at 1.12. When it comes to the capital structure of this company, Brookdale Senior Living Inc. [BKD] has a Total Debt to Total Equity ratio set at 680.25. Additionally, BKD Total Debt to Total Capital is recorded at 87.18, with Total Debt to Total Assets ending up at 73.65. Long-Term Debt to Equity for the company is recorded at 650.93, with the Long-Term Debt to Total Capital now at 83.43.

Reflecting on the efficiency of the workforce at the company, Brookdale Senior Living Inc. [BKD] managed to generate an average of $1,823 per employee. Receivables Turnover for the company is 28.25 with a Total Asset Turnover recorded at a value of 0.47.Brookdale Senior Living Inc.’s liquidity data is similarly interesting compelling, with a Quick Ratio of 1.00 and a Current Ratio set at 1.00.

Brookdale Senior Living Inc. [BKD]: An earnings per share (EPS) analysis

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 BKD. When it comes to the mentioned value, analysts are expecting to see the 5-year EPS growth rate for Brookdale Senior Living Inc. go to 10.00%.

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An analysis of insider ownership at Brookdale Senior Living Inc. [BKD]

There are presently around $897 million, or 96.40% of BKD stock, in the hands of institutional investors. The top three institutional holders of BKD stocks are: BLACKROCK INC. with ownership of 24,457,861, which is approximately 6.855% of the company’s market cap and around 0.40% of the total institutional ownership; VANGUARD GROUP INC, holding 17,154,619 shares of the stock with an approximate value of $87.14 million in BKD stocks shares; and CAMBER CAPITAL MANAGEMENT LP, currently with $81.28 million in BKD stock with ownership of nearly 4.235% of the company’s market capitalization.

Positions in Brookdale Senior Living Inc. stocks held by institutional investors increased at the end of November and at the time of the November reporting period, where 86 institutional holders increased their position in Brookdale Senior Living Inc. [NYSE:BKD] by around 18,325,495 shares. Additionally, 82 investors decreased positions by around 12,166,147 shares, while 44 investors held positions by with 146,124,565 shares. The mentioned changes placed institutional holdings at 176,616,207 shares, according to the latest SEC report filing. BKD stock had 32 new institutional investments in for a total of 8,513,930 shares, while 28 institutional investors sold positions of 3,332,512 shares during the same period.