2024-05-23 08:47:54 ET
Summary
- Brookdale Senior Living's stock has seen a 26% increase in the past 16 weeks due to improved operating conditions and RevPar growth.
- The company's high leverage and debt raise concerns about its ability to keep residents, associates, and shareholders equally happy over the long term.
- Short interest in the stock is on the rise, and the valuation is not cheap compared to historical averages.
I ntro
We wrote about Brookdale Senior Living Inc. ( BKD ) in February of this year when we stood pat on our 'Hold' rating in the Senior Living Community player. Operating conditions (as we will learn from the company's recent first-quarter numbers) continue to improve in Brookdale concerning RevPar growth, resulting in almost a 26% up move in the stock over the past 16 weeks. This is a sizable gain in the stock considering that we had hinted at a false technical breakout in February which never materialized. On the contrary, investors who held their positions over the past 16 weeks easily beat the performance of the S&P500 (9% gain) by a significant margin....
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For further details see:
Brookdale Senior Living: High Short-Interest And High Debt Eventually To Cap Upside