SAN JUAN CAPISTRANO, CA—In recent transactions disclosed by Ensign Group, Inc. (NASDAQ:ENSG), Director Ann Scott Blouin executed a sale of company stock. On November 1, Blouin sold 375 shares of Ensign Group's common stock at a price of $155.31 per share, amounting to a total transaction value of $58,241. Following this sale, Blouin retains ownership of 21,102 shares in the company. The transaction was conducted under a pre-established Rule 10b5-1 trading plan, which Blouin adopted on July 31, 2024.
In other recent news, The Ensign Group (NASDAQ:ENSG) reported a record-setting third quarter, with consolidated revenues increasing by 15% to $1.1 billion and same-store occupancy reaching 81.7%. The company also raised its 2024 earnings guidance to $5.46 to $5.52 per diluted share. The robust performance was attributed to aggressive merger and acquisition activities and strong occupancy rates.
Truist Securities, Stephens, and RBC Capital all revised their price targets upwards for The Ensign Group, maintaining a positive outlook on the company's stock. Truist Securities highlighted the company's financial flexibility and potential for growth, while Stephens and RBC Capital cited record occupancy rates and merger activities as key factors for their positive outlooks.
Ensign Group's expansion strategy includes entering new markets and strengthening its presence in existing ones. The company recently added 1,279 skilled nursing beds and 20 senior living units through the acquisition of 27 new operations. Despite challenges with insurer claims denials, the company remains optimistic about future growth.
InvestingPro Insights
As Ensign Group's Director Ann Scott Blouin executes a stock sale, it's worth noting that the company's shares are trading near their 52-week high, with a price that is 96.93% of the peak. This aligns with the strong performance reflected in InvestingPro data, which shows a remarkable 50.67% total return over the past year and a 31.35% return in the last six months.
InvestingPro Tips highlight that Ensign Group has raised its dividend for 17 consecutive years, demonstrating a commitment to shareholder returns. This consistent dividend growth, coupled with a current dividend yield of 0.16%, may be attractive to income-focused investors despite the recent stock sale by the director.
The company's financial health appears robust, with InvestingPro data revealing a revenue of $4.11 billion over the last twelve months as of Q3 2023, representing a 15.46% growth. However, investors should be aware that Ensign Group is trading at a relatively high P/E ratio of 36.23, which InvestingPro Tips flag as "trading at a high earnings multiple."
For those interested in a deeper analysis, InvestingPro offers 14 additional tips on Ensign Group, providing a more comprehensive view of the company's financial position and market performance.
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