Sonida Senior Living (NYSE:SNDA) Shares Down 5.9% After Earnings Miss

Shares of Sonida Senior Living, Inc. (NYSE:SNDA) traded down 5.9% on Tuesday following a dissappointing earnings announcement. The stock traded as low as $39.56 and last traded at $39.5060. Approximately 293,457 shares traded hands during mid-day trading, a decline of 41% from the average session volume of 498,758 shares. The stock had previously closed at $41.99.

The company reported ($0.52) earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of ($0.09) by ($0.43). The business had revenue of $207.65 million during the quarter. Sonida Senior Living had a negative net margin of 24.15% and a negative return on equity of 36.98%. During the same period last year, the company posted ($0.16) EPS.

Trending Headlines about Sonida Senior Living

Here are the key news stories impacting Sonida Senior Living this week:

• Positive Sentiment: Cantor Fitzgerald raised its price target on Sonida from $42 to $47 and maintained an “overweight” rating, implying approximately 13.3% upside from the referenced share price. Benzinga report
• Positive Sentiment: Sonida outlined $88 million of acquisitions expected to generate mid-teens internal rates of return. Management also reported occupancy trends in the low-to-mid-90% range for the acquired properties, supporting the company’s external growth strategy. Acquisition report
• Positive Sentiment: Same-store occupancy increased 240 basis points year over year to 87.8% in the second quarter, indicating continued improvement in the operating platform and underlying demand for senior housing. Sonida second-quarter results
• Neutral Sentiment: Revenue reached $207.65 million in the second quarter, exceeding expectations, while management emphasized continued execution of its growth strategy. Zacks earnings report
• Negative Sentiment: Sonida reported a second-quarter loss of $0.52 per share, substantially worse than the $0.09 loss analysts expected and wider than the $0.16 loss a year earlier. The negative margin and return on equity may be weighing on the stock despite the revenue beat and operational improvements. MarketBeat earnings report

Analysts Set New Price Targets

A number of research analysts have commented on the stock. Robert W. Baird raised their price target on shares of Sonida Senior Living from $35.00 to $37.00 and gave the stock a “neutral” rating in a research note on Friday, April 24th. Compass Point started coverage on Sonida Senior Living in a research note on Tuesday. They issued a “buy” rating and a $65.00 price objective on the stock. Citigroup began coverage on Sonida Senior Living in a report on Monday, July 27th. They issued a “market outperform” rating for the company. Cantor Fitzgerald boosted their price target on Sonida Senior Living from $42.00 to $47.00 and gave the company an “overweight” rating in a research note on Tuesday. Finally, Wall Street Zen upgraded Sonida Senior Living from a “sell” rating to a “hold” rating in a research report on Saturday, August 1st. Five investment analysts have rated the stock with a Buy rating, two have given a Hold rating and one has issued a Sell rating to the company’s stock. According to data from MarketBeat.com, the stock currently has a consensus rating of “Moderate Buy” and an average target price of $47.50.

Insiders Place Their Bets

In related news, Director Benjamin P. Harris sold 2,500 shares of Sonida Senior Living stock in a transaction dated Wednesday, May 13th. The stock was sold at an average price of $37.46, for a total value of $93,650.00. Following the completion of the transaction, the director directly owned 9,182 shares of the company’s stock, valued at $343,957.72. The trade was a 21.40% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is available through the SEC website. 39.30% of the stock is owned by corporate insiders.

Hedge Funds Weigh In On Sonida Senior Living

Several hedge funds have recently added to or reduced their stakes in SNDA. Capital Advisors Ltd. LLC bought a new stake in Sonida Senior Living in the 1st quarter valued at approximately $45,000. Main Street Group LTD bought a new position in shares of Sonida Senior Living during the 1st quarter worth approximately $50,000. First Pacific Financial bought a new position in shares of Sonida Senior Living during the 1st quarter worth approximately $56,000. Darwin Wealth Management LLC acquired a new stake in shares of Sonida Senior Living in the first quarter valued at approximately $63,000. Finally, Sunbelt Securities Inc. acquired a new stake in shares of Sonida Senior Living in the first quarter valued at approximately $64,000. Institutional investors own 87.55% of the company’s stock.

Sonida Senior Living Price Performance

The company has a 50-day simple moving average of $38.76. The firm has a market capitalization of $1.87 billion, a price-to-earnings ratio of -6.78 and a beta of 0.80. The company has a debt-to-equity ratio of 1.58, a quick ratio of 0.44 and a current ratio of 0.44.

Sonida Senior Living Company Profile

Sonida Senior Living (NYSE: SNDA) is a publicly traded company that owns and operates senior living communities in the United States. The company’s core business centers on providing housing and care services for older adults, with an emphasis on assisted living, memory care and related supportive services tailored to residents’ needs.

Sonida’s communities combine residential accommodations with on-site services such as personal care assistance, medication management, dining programs, social and recreational activities, and clinical oversight.