CareTrust REIT (NYSE:CTRE) Cut to “Strong Sell” at Zacks Research

Zacks Research downgraded shares of CareTrust REIT (NYSE:CTRE) from a hold rating to a strong sell rating in a research report report published on Wednesday,Zacks.com reports.

Other equities research analysts also recently issued reports about the company. Weiss Ratings upgraded CareTrust REIT from a “buy (b+)” rating to a “buy (a-)” rating in a research note on Monday, January 26th. BMO Capital Markets upgraded shares of CareTrust REIT from a “hold” rating to an “outperform” rating and set a $43.00 price objective on the stock in a research note on Friday, January 9th. The Goldman Sachs Group set a $44.00 price objective on shares of CareTrust REIT in a report on Thursday, January 22nd. UBS Group upped their target price on shares of CareTrust REIT from $44.00 to $48.00 and gave the company a “buy” rating in a report on Wednesday, February 18th. Finally, Cantor Fitzgerald increased their price target on shares of CareTrust REIT from $37.00 to $42.00 and gave the stock a “neutral” rating in a research report on Tuesday, February 17th. Three equities research analysts have rated the stock with a Strong Buy rating, seven have given a Buy rating, one has given a Hold rating and one has assigned a Sell rating to the company. Based on data from MarketBeat.com, CareTrust REIT has an average rating of “Buy” and a consensus target price of $42.90.

CareTrust REIT Price Performance

NYSE CTRE opened at $37.15 on Wednesday. The stock has a market capitalization of $8.29 billion, a price-to-earnings ratio of 23.97, a PEG ratio of 2.51 and a beta of 0.74. CareTrust REIT has a 1-year low of $25.82 and a 1-year high of $41.72. The company has a debt-to-equity ratio of 0.22, a current ratio of 1.73 and a quick ratio of 1.73. The business’s fifty day moving average price is $38.80 and its 200-day moving average price is $36.81.

CareTrust REIT (NYSE:CTRE) last issued its quarterly earnings data on Thursday, February 12th. The company reported $0.50 EPS for the quarter, topping the consensus estimate of $0.47 by $0.03. The company had revenue of $134.86 million during the quarter. CareTrust REIT had a return on equity of 8.98% and a net margin of 67.28%.CareTrust REIT has set its FY 2026 guidance at 1.900-1.95 EPS.

CareTrust REIT Increases Dividend

The company also recently announced a quarterly dividend, which will be paid on Wednesday, April 15th. Shareholders of record on Tuesday, March 31st will be paid a dividend of $0.39 per share. This represents a $1.56 dividend on an annualized basis and a yield of 4.2%. The ex-dividend date is Tuesday, March 31st. This is a positive change from CareTrust REIT’s previous quarterly dividend of $0.34. CareTrust REIT’s dividend payout ratio (DPR) is 86.45%.

Hedge Funds Weigh In On CareTrust REIT

A number of hedge funds have recently modified their holdings of the company. Vanguard Group Inc. raised its position in shares of CareTrust REIT by 14.1% during the 3rd quarter. Vanguard Group Inc. now owns 32,973,216 shares of the company’s stock valued at $1,143,511,000 after purchasing an additional 4,067,975 shares during the period. T. Rowe Price Investment Management Inc. boosted its holdings in CareTrust REIT by 108.5% in the 4th quarter. T. Rowe Price Investment Management Inc. now owns 6,493,898 shares of the company’s stock worth $234,820,000 after buying an additional 3,379,732 shares during the period. Norges Bank purchased a new stake in CareTrust REIT in the 4th quarter worth $114,810,000. Invesco Ltd. increased its stake in CareTrust REIT by 201.8% in the 2nd quarter. Invesco Ltd. now owns 3,772,350 shares of the company’s stock worth $115,434,000 after buying an additional 2,522,260 shares in the last quarter. Finally, Hudson Bay Capital Management LP raised its holdings in CareTrust REIT by 713.4% during the third quarter. Hudson Bay Capital Management LP now owns 1,710,528 shares of the company’s stock valued at $59,321,000 after acquiring an additional 1,989,394 shares during the period. 87.77% of the stock is currently owned by institutional investors.

CareTrust REIT Company Profile

CareTrust REIT, Inc is a real estate investment trust based in Deerfield Beach, Florida, specializing in the ownership, acquisition and management of net-leased healthcare properties. The company primarily focuses on seniors housing and post-acute care facilities, entering into long-term, triple-net lease agreements with leading operators in the skilled nursing, assisted living, memory care, inpatient rehabilitation and specialty hospital sectors. Through its portfolio, CareTrust REIT aims to provide investors with stable and predictable rental income while supporting the ongoing demand for quality healthcare real estate across the United States.

Since its initial public offering in September 2013, CareTrust REIT has pursued a disciplined acquisition strategy, targeting properties in primary and select secondary markets.