The Case for and Against Brookdale Senior Living Inc. (BKD)

Brookdale Senior Living Inc. (BKD) is an interesting player in the Healthcare space, with a focus on Long-Term Care Facilities. The stock has been active on the tape, currently trading at $9.38, up from yesterday’s close by 2.40%. Given the stock’s recent action, it seemed like a good time to take a closer look at the company’s recent data.

Fundamental Analysis

Brookdale Senior Living Inc. (BKD) currently trades with a market capitalization of $1.78 Billion. That value represents a market adjusting for revenues that have been falling by -5.47 % on a quarterly year/year basis as of the company’s last quarterly report.

You can get a sense of how sustainable that is by a levered free cash flow of $387.45 Million over the past twelve months. Generally speaking, earnings are expected to grow in coming quarters. Analysts are forecasting earnings of -$0.25 on a per share basis this quarter. Perhaps, that suggests something about why 3.55% of the outstanding share supply is held by institutional investors.

Technical Analysis

Sometimes, we can understand most about a stock by simply looking at how it has been trading. Looking at the stock’s movement on the chart, Brookdale Senior Living Inc. recorded a 52-week high of $16.31. It is now trading 6.93% off that level. The stock is trading $10.07 its 50-day moving average by 0.69%. The stock carved out a 52-week low down at $8.78.

In recent action, Brookdale Senior Living Inc. (BKD) has made a move of -5.73% over the past month, which has come on weak relative transaction volume. Over the trailing year, the stock is underperforming the S&P 500 by 21.04, and it’s gotten there by action that has been more volatile on a day-to-day basis than most other stocks on the exchange. In terms of the mechanics underlying that movement, traders will want to note that the stock is trading on a float of 6.61% with $183.73 Million sitting short, betting on future declines. That suggests something of the likelihood of a short squeeze in shares of BKD.

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