CareTrust REIT Inc (CTRE) Shares Decline Despite Market Challenges

CareTrust REIT Inc (NYSE: CTRE)’s stock price has plunge by -0.78relation to previous closing price of 24.24. Nevertheless, the company has seen a -0.50% plunge in its stock price over the last five trading sessions. Seeking Alpha reported 2024-03-27 that CareTrust REIT is a healthcare real estate investment trust focused on senior facilities. The trust owns a large portfolio of Skilled Nursing facilities and benefits from aging trends in the US. CareTrust REIT has strong EBITDA/FFO growth, a low payout ratio, and a growing dividend, making it an attractive option for passive income investors.

Is It Worth Investing in CareTrust REIT Inc (NYSE: CTRE) Right Now?

CareTrust REIT Inc (NYSE: CTRE) has a price-to-earnings ratio that is above its average at 49.60x. The stock has a 36-month beta value of 1.06. Opinions on the stock are mixed, with 2 analysts rating it as a “buy,” 1 as “overweight,” 6 as “hold,” and 0 as “sell.”

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The public float for CTRE is 134.22M, and at present, short sellers hold a 2.01% of that float. On April 03, 2024, the average trading volume of CTRE was 1.48M shares.

CTRE’s Market Performance

CTRE’s stock has seen a -0.50% decrease for the week, with a 5.48% rise in the past month and a 7.46% gain in the past quarter. The volatility ratio for the week is 1.25%, and the volatility levels for the past 30 days are at 1.66% for CareTrust REIT Inc The simple moving average for the last 20 days is 0.94% for CTRE stock, with a simple moving average of 11.86% for the last 200 days.

Analysts’ Opinion of CTRE

Many brokerage firms have already submitted their reports for CTRE stocks, with Deutsche Bank repeating the rating for CTRE by listing it as a “Hold.” The predicted price for CTRE in the upcoming period, according to Deutsche Bank is $23 based on the research report published on January 30, 2024 of the current year 2024.

Jefferies, on the other hand, stated in their research note that they expect to see CTRE reach a price target of $23. The rating they have provided for CTRE stocks is “Buy” according to the report published on September 20th, 2023.

RBC Capital Mkts gave a rating of “Outperform” to CTRE, setting the target price at $23 in the report published on September 12th of the previous year.

CTRE Trading at 5.77% from the 50-Day Moving Average

After a stumble in the market that brought CTRE to its low price for the period of the last 52 weeks, the company was unable to rebound, for now settling with -2.12% of loss for the given period.

Volatility was left at 1.66%, however, over the last 30 days, the volatility rate increased by 1.25%, as shares surge +2.38% for the moving average over the last 20 days. Over the last 50 days, in opposition, the stock is trading +10.07% upper at present.

During the last 5 trading sessions, CTRE fell by -0.50%, which changed the moving average for the period of 200-days by +21.04% in comparison to the 20-day moving average, which settled at $23.85. In addition, CareTrust REIT Inc saw 7.46% in overturn over a single year, with a tendency to cut further gains.

Stock Fundamentals for CTRE

Current profitability levels for the company are sitting at:

  • 0.76 for the present operating margin
  • 0.95 for the gross margin

The net margin for CareTrust REIT Inc stands at 0.27. The total capital return value is set at 0.08. Equity return is now at value 4.71, with 2.88 for asset returns.

Based on CareTrust REIT Inc (CTRE), the company’s capital structure generated 0.3 points at debt to capital in total, while cash flow to debt ratio is standing at 0.26. The debt to equity ratio resting at 0.42. The interest coverage ratio of the stock is 3.7.

Currently, EBITDA for the company is 186.37 million with net debt to EBITDA at 1.62. When we switch over and look at the enterprise to sales, we see a ratio of 17.32. The receivables turnover for the company is 502.78for trailing twelve months and the total asset turnover is 0.1.

Conclusion

To sum up, CareTrust REIT Inc (CTRE) has seen a better performance recently. Analysts have differing views on the stock, with some seeing it as a “buy” and others as a “hold”. It is worth mentioning that the stock is currently trading in close proximity to its 50-day moving average and its 52-week high.

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