The Ensign Group, Inc. (NASDAQ:ENSG) has received a positive outlook from analysts, with an average target price set at $196.40. Six brokerages currently cover the stock, revealing a consensus rating of “Moderate Buy.” Among these, one analyst has recommended holding the stock, while five others advocate for a buy.
Recent reports have highlighted varying perspectives on the company’s potential. On October 8, Weiss Ratings reaffirmed a “buy (b)” rating for The Ensign Group. Following this, Stephens raised its price target from $185.00 to $200.00, maintaining an “overweight” rating in a report dated November 5. In a subsequent analysis, Truist Financial increased its target from $190.00 to $200.00, assigning a “hold” rating. Meanwhile, the Royal Bank of Canada also adjusted its rating, increasing the target to $206.00 from a previous $177.00, demonstrating confidence in the stock’s growth potential. Finally, UBS Group reissued a “buy” rating with a new target price of $220.00, up from $205.00.
Investor Activity and Stock Performance
Significant changes have occurred in the holdings of large investors regarding The Ensign Group. Wasatch Advisors LP increased its stake by 6.0% during the second quarter, now owning 3,558,675 shares valued at approximately $548.96 million after acquiring an additional 199,983 shares. Similarly, Baillie Gifford & Co. expanded its position by an impressive 96.2% in the third quarter, now holding 2,818,609 shares worth about $486.97 million.
Other notable investors include Capital Research Global Investors, which raised its position by 7.2%, and Geode Capital Management LLC, which increased its holdings by 1.4%. Dimensional Fund Advisors LP also lifted its stake by 0.8%. Collectively, institutional investors and hedge funds now own 96.12% of the stock, indicating strong institutional confidence in The Ensign Group.
As of November 3, the stock opened at $175.63. The Ensign Group has shown resilience with a debt-to-equity ratio of 0.07 and a current ratio of 1.46. The company reported a 19.8% year-over-year increase in quarterly revenue, reaching $1.30 billion, surpassing analysts’ expectations of $1.28 billion.
Recent Earnings and Dividend Announcement
On November 3, The Ensign Group announced its quarterly earnings, reporting an earnings per share (EPS) of $1.64, exceeding the consensus estimate of $1.59 by $0.05. This demonstrates a solid return on equity of 16.77% and a net margin of 6.80%. For fiscal year 2025, the company has provided guidance of an EPS range between 6.480 and 6.540.
Additionally, The Ensign Group declared a quarterly dividend of $0.0625, which was paid on October 31. Shareholders who were on record as of September 30 received this dividend. This annualizes to $0.25, reflecting a modest dividend yield of 0.1% and a payout ratio of 4.47%.
The Ensign Group, Inc. specializes in providing skilled nursing, senior living, and rehabilitative services. Its operations are divided into two segments: Skilled Services and Standard Bearer, focusing on comprehensive care for patients with chronic conditions and the elderly population. The company continues to attract attention from investors and analysts alike as it navigates the evolving healthcare landscape.
