Genesis Energy L.P. (GEL) Vs. Brookdale Senior Living Inc. (BKD): Those Ticking Clocks

Genesis Energy L.P. (NYSE: GEL) shares are -73.00% down in the year-to-date (YTD) period and have moved 3.95% or $0.21 higher in the latest trading session. However, stock’s trailing 12-month performance remains nearly +114.34% lower. Comparatively, the stock is -75.09% down YTD and -31.22% over the trailing 3-month period. If we look at the shorter duration, its week performance is 2.22% and -21.11% over the month.

Analyst Recommendations

On February 20, 2020, UBS recommended the GEL stock is a Neutral, while earlier, UBS had Upgrade the stock as a Buy on March 16, 2020. 6 analysts offering the recommendations for the stock have a consensus rating of 2.60 to suggest that the GEL stock is a “Moderate Buy. 1 of the 6 analysts rate the stock as a “Sell”, while 0 has rated it as “Underweight”. 2 recommend buying, with 0 rating it as an Overweight.

Earnings Forecast

Analysts estimate the earnings to decrease -4,600.00% in the current quarter to -$0.02, down from the -$0.01 reported in the same quarter a year ago. For the current year, earnings should grow to an average of -$2.12, down -30.70% from $0.18 reported last year. Analysts also offered guidance for the next financial quarter, with their average projected EPS at between -$0.06 and $0.13. Wall Street estimates earnings per share to be at an average of $0.32 for the next year.

Insider Transactions Summary

According to SEC data, total insider shares purchases at the company stands at 47 over the last 12 months, while SEC filings reveal that there have been 25 insider sales over the same period. Insiders have purchases 451,909 shares while those sold by company executives and officers stand at 20,252. The last 3 months have seen insiders trade a total of 4,856 and 4,856 in purchases and sales respectively.

Davison James E, a Director at the company, bought 100,000 shares worth $0.35 million at $3.49 per share on Mar 18. The Director had earlier bought another 10,000 GEL shares valued at $30391.0 on Mar 30. The shares were bought at $3.04 per share. Jesulaitis Kristen O (General Counsel & Secretary) bought 10,000 shares at $4.78 per share on Mar 12 for a total of $47791.0 while GOLOWAY WILLIAM STANTON, (Vice President) bought 10,000 shares on Mar 12 for $51800.0 with each share fetching $5.18.

Brookdale Senior Living Inc. (NYSE:BKD), on the other hand, is trading around $2.85 with a market cap of $524.09M and analyst research firms have a negative stance on its shares. Analysts predict that the stock will reach $4.00 and spell out a more modest performance – a 28.75% return. Some analysts are even forecasting $1 per share in earnings this year on a short term (1 year) basis.

Let us briefly look at the Brookdale Senior Living Inc. (BKD) financials, with a focus on its operating details as indicated in its earnings report for the last quarter.

Company balance sheet and cash flow

BKD’s operating margin was negative on the trailing 12 months basis, remaining steady at -2.40%, while the operating expenses over the recent quarter were at $319.89 million. This represented a 63.06% of the company’s total revenues which amounted $865.91 million. With this in place, we can see that the company’s diluted EPS declined -$0.65 on the year-over-year period, shrinking to -$0.30 as given in the last earnings report.

In terms of the balance sheet & cash flow as of (Sep 2020), the total assets figure advanced to $7.42 billion from $7.5 billion over the previous quarter. Short term investments amounted to $109.87 million while total current assets were at $838.03 million. The cash flow from operating activities totaled $209.32 million, significantly higher than the $59.12 million reported in the year-ago quarter. The company’s free cash flow for the quarter was -$350.23 million.

Insider activity

Insiders have transacted a total of 12 times at Brookdale Senior Living Inc. over the last 6 months, with insider purchases undertaken 10 times and accounting for 135,734 shares. Insider sales totaled 2,269 shares over the same period, with these deals completed in 2 transactions. Looking at these numbers, we realize that net purchases over that period are 8.0 shares. Insiders now hold a total of 3.62M shares after the latest sales, with -82.80% net shares purchased.

Major holders

Insiders own 0.30% of the company shares, while shares held by institutions stand at 97.80% with a share float percentage of 179.08M. Investors are also buoyed by the number of investors in a company, with Brookdale Senior Living Inc. having a total of 237 institutions that hold shares in the company. The top two institutional holders are Blackrock Inc. with over 21.41 million shares worth more than $63.15 million. As of Jun 29, 2020, Blackrock Inc. held 11.68% of shares outstanding.

The other major institutional holder is Vanguard Group, Inc. (The), with the investment firm holding over 17.1 million shares as of Jun 29, 2020. The firm’s total holdings are worth over $50.45 million and represent 9.33% of shares outstanding.