Brookdale Senior Living (BKD) Moving On Heavy Volume In The Pre-Market Hours

Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer or Stephanie Link.

Trade-Ideas LLC identified Brookdale Senior Living ( BKD) as a pre-market mover with heavy volume candidate. In addition to specific proprietary factors, Trade-Ideas identified Brookdale Senior Living as such a stock due to the following factors:

  • BKD has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $36.7 million.
  • BKD traded 229,475 shares today in the pre-market hours as of 8:51 AM, representing 21.3% of its average daily volume.

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More details on BKD:

Brookdale Senior Living Inc. owns and operates senior living communities in the United States. It operates in six segments: Retirement Centers, Assisted Living, Continuing Care Retirement Communities (CCRCs) Rental, CCRCs Entry Fee, Brookdale Ancillary Services, and Management Services. Currently there are 6 analysts that rate Brookdale Senior Living a buy, no analysts rate it a sell, and 1 rates it a hold.

The average volume for Brookdale Senior Living has been 1.7 million shares per day over the past 30 days. Brookdale Senior Living has a market cap of $6.0 billion and is part of the health care sector and health services industry. The stock has a beta of 2.22 and a short float of 12% with 3.47 days to cover. Shares are up 27.6% year-to-date as of the close of trading on Friday.

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.

TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates Brookdale Senior Living as a hold. The company's strengths can be seen in multiple areas, such as its solid stock price performance, compelling growth in net income and revenue growth. However, as a counter to these strengths, we also find weaknesses including generally higher debt management risk and poor profit margins.

Highlights from the ratings report include:
  • Investors have apparently begun to recognize positive factors similar to those we have mentioned in this report, including earnings growth. This has helped drive up the company's shares by a sharp 37.90% over the past year, a rise that has exceeded that of the S&P 500 Index. Regarding the stock's future course, our hold rating indicates that we do not recommend additional investment in this stock despite its gains in the past year.
  • The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Health Care Providers & Services industry. The net income increased by 36.6% when compared to the same quarter one year prior, rising from -$5.20 million to -$3.30 million.
  • BROOKDALE SENIOR LIVING INC has improved earnings per share by 25.0% in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past two years. However, we anticipate underperformance relative to this pattern in the coming year. During the past fiscal year, BROOKDALE SENIOR LIVING INC continued to lose money by earning -$0.03 versus -$0.55 in the prior year. For the next year, the market is expecting a contraction of 400.0% in earnings (-$0.15 versus -$0.03).
  • The gross profit margin for BROOKDALE SENIOR LIVING INC is rather low; currently it is at 20.79%. Regardless of BKD's low profit margin, it has managed to increase from the same period last year. Despite the mixed results of the gross profit margin, the net profit margin of -0.44% trails the industry average.
  • The debt-to-equity ratio is very high at 2.57 and currently higher than the industry average, implying increased risk associated with the management of debt levels within the company. Along with this, the company manages to maintain a quick ratio of 0.27, which clearly demonstrates the inability to cover short-term cash needs.

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.

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