Fintel reports that on September 12, 2023, RBC Capital upgraded their outlook for CareTrust REIT (NASDAQ:CTRE) from Sector Perform to Outperform.

Analyst Price Forecast Suggests 12.15% Upside

As of August 31, 2023, the average one-year price target for CareTrust REIT is 22.55. The forecasts range from a low of 19.19 to a high of $25.20. The average price target represents an increase of 12.15% from its latest reported closing price of 20.11.

See our leaderboard of companies with the largest price target upside.

The projected annual revenue for CareTrust REIT is 208MM, an increase of 1.71%. The projected annual non-GAAP EPS is 1.11.

CareTrust REIT Declares $0.28 Dividend

On June 20, 2023 the company declared a regular quarterly dividend of $0.28 per share ($1.12 annualized). Shareholders of record as of June 30, 2023 received the payment on July 14, 2023. Previously, the company paid $0.28 per share.

At the current share price of $20.11 / share, the stock’s dividend yield is 5.57%.

Looking back five years and taking a sample every week, the average dividend yield has been 4.98%, the lowest has been 3.48%, and the highest has been 9.98%. The standard deviation of yields is 0.89 (n=235).

The current dividend yield is 0.66 standard deviations above the historical average.

Additionally, the company’s dividend payout ratio is 3.29. The payout ratio tells us how much of a company’s income is paid out in dividends. A payout ratio of one (1.0) means 100% of the company’s income is paid in a dividend. A payout ratio greater than one means the company is dipping into savings in order to maintain its dividend – not a healthy situation. Companies with few growth prospects are expected to pay out most of their income in dividends, which typically means a payout ratio between 0.5 and 1.0. Companies with good growth prospects are expected to retain some earnings in order to invest in those growth prospects, which translates to a payout ratio of zero to 0.5.

The company’s 3-Year dividend growth rate is 0.12%, demonstrating that it has increased its dividend over time.

What is the Fund Sentiment?

There are 546 funds or institutions reporting positions in CareTrust REIT. This is an increase of 3 owner(s) or 0.55% in the last quarter. Average portfolio weight of all funds dedicated to CTRE is 0.17%, an increase of 7.77%. Total shares owned by institutions increased in the last three months by 6.26% to 102,765K shares. The put/call ratio of CTRE is 0.17, indicating a bullish outlook.

What are Other Shareholders Doing?

IJR – iShares Core S&P Small-Cap ETF holds 6,976K shares representing 7.01% ownership of the company. In it’s prior filing, the firm reported owning 7,258K shares, representing a decrease of 4.05%. The firm decreased its portfolio allocation in CTRE by 5.59% over the last quarter.

Wellington Management Group Llp holds 6,669K shares representing 6.70% ownership of the company. In it’s prior filing, the firm reported owning 5,973K shares, representing an increase of 10.43%. The firm increased its portfolio allocation in CTRE by 8.06% over the last quarter.

VGSIX – Vanguard Real Estate Index Fund Investor Shares holds 4,264K shares representing 4.29% ownership of the company. In it’s prior filing, the firm reported owning 4,327K shares, representing a decrease of 1.47%. The firm increased its portfolio allocation in CTRE by 2.72% over the last quarter.

VTSMX – Vanguard Total Stock Market Index Fund Investor Shares holds 3,154K shares representing 3.17% ownership of the company. In it’s prior filing, the firm reported owning 3,140K shares, representing an increase of 0.44%. The firm decreased its portfolio allocation in CTRE by 6.00% over the last quarter.

NAESX – Vanguard Small-Cap Index Fund Investor Shares holds 2,568K shares representing 2.58% ownership of the company. In it’s prior filing, the firm reported owning 2,605K shares, representing a decrease of 1.43%. The firm decreased its portfolio allocation in CTRE by 4.86% over the last quarter.

CareTrust REIT Background Information
(This description is provided by the company.)

CareTrust REIT, Inc. is a self-administered,publicly-traded real estate investment trust engaged in the ownership, acquisition, development and leasing of skilled nursing, seniors housing and other healthcare-related properties. With a nationwide portfolio of long-termnet-leased properties, and a growing portfolio of quality operators leasing them, CareTrust REIT is pursuing both external and organic growth opportunities across the United States.

This article originally appeared on Fintel

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