Traders Purchase High Volume of Call Options on CareTrust REIT (NYSE:CTRE)

CareTrust REIT, Inc. (NYSE:CTRE) was the recipient of some unusual options trading on Tuesday. Stock traders bought 3,705 call options on the stock. This represents an increase of approximately 3,238% compared to the average daily volume of 111 call options.

Hedge Funds Weigh In On CareTrust REIT

Institutional investors have recently modified their holdings of the business. Anchor Investment Management LLC lifted its holdings in CareTrust REIT by 4.3% during the second quarter. Anchor Investment Management LLC now owns 7,260 shares of the company’s stock worth $293,000 after acquiring an additional 297 shares during the period. Tidal Investments LLC grew its stake in CareTrust REIT by 365.9% in the 2nd quarter. Tidal Investments LLC now owns 85,678 shares of the company’s stock valued at $3,457,000 after purchasing an additional 67,290 shares during the period. WINTON GROUP Ltd purchased a new stake in shares of CareTrust REIT during the 2nd quarter valued at $751,000. Engineers Gate Manager LP purchased a new stake in shares of CareTrust REIT during the 2nd quarter valued at $246,000. Finally, Integrated Wealth Concepts LLC raised its stake in shares of CareTrust REIT by 8.3% during the 2nd quarter. Integrated Wealth Concepts LLC now owns 9,196 shares of the company’s stock worth $371,000 after purchasing an additional 705 shares during the period. 87.77% of the stock is owned by institutional investors.

More CareTrust REIT News

Here are the key news stories impacting CareTrust REIT this week:

• Positive Sentiment: Large skilled-nursing acquisition expands the portfolio. CareTrust agreed to acquire a Southwest portfolio for $400 million, comprising 2,622 licensed beds. The facilities are triple-net leased to the existing operator under a long-term agreement with inflation-linked rent escalators and renewal options, supporting recurring revenue and potential internal growth. CareTrust REIT Acquires Skilled Nursing Portfolio for $400 Million; Announces $600 Million Reloaded Pipeline
• Positive Sentiment: Management also highlighted a $600 million acquisition pipeline. The reloaded pipeline suggests CareTrust may have additional opportunities to grow its asset base and funds from operations following the transaction. CareTrust REIT Acquires Nursing Home Portfolio for $400M
• Positive Sentiment: The dividend was maintained at $0.39 per share quarterly. The payment is scheduled for October 15 for shareholders of record on September 30, representing an annualized $1.56 distribution and an indicated yield of about 4.1%. CareTrust REIT Announces Quarterly Dividend of $0.39 per Share
• Neutral Sentiment: Demographic trends remain a long-term tailwind. An aging U.S. population and the increasing number of Americans entering their 80s could support demand for skilled-nursing facilities and benefit CareTrust over an extended period. The Baby Boomer Aging Wave Has Arrived
• Negative Sentiment: The acquisition creates near-term execution and capital-allocation concerns. Investors may be focused on how the $400 million purchase is financed, the added leverage, and whether the acquired operator and facilities deliver expected returns. The stock’s position below its 50-day and 200-day moving averages may reinforce that caution.

CareTrust REIT Stock Performance

NYSE CTRE opened at $37.97 on Thursday. CareTrust REIT has a 1 year low of $32.79 and a 1 year high of $43.62. The company has a debt-to-equity ratio of 0.27, a current ratio of 0.57 and a quick ratio of 0.57. The firm has a market cap of $8.97 billion, a price-to-earnings ratio of 23.88, a PEG ratio of 1.52 and a beta of 0.76. The company has a fifty day moving average price of $40.32 and a 200-day moving average price of $39.67.

CareTrust REIT (NYSE:CTRE) last announced its earnings results on Thursday, August 6th. The company reported $0.51 EPS for the quarter, meeting the consensus estimate of $0.51. CareTrust REIT had a net margin of 62.19% and a return on equity of 8.52%. The company had revenue of $161.35 million during the quarter. CareTrust REIT has set its FY 2026 guidance at 2.030-2.060 EPS. As a group, equities research analysts predict that CareTrust REIT will post 2.04 EPS for the current fiscal year.

CareTrust REIT Dividend Announcement

The company also recently announced a quarterly dividend, which will be paid on Thursday, October 15th. Shareholders of record on Wednesday, September 30th will be given a dividend of $0.39 per share. The ex-dividend date of this dividend is Wednesday, September 30th. This represents a $1.56 annualized dividend and a dividend yield of 4.1%. CareTrust REIT’s dividend payout ratio (DPR) is currently 98.11%.

Analyst Ratings Changes

CTRE has been the topic of a number of recent research reports. Zacks Research upgraded CareTrust REIT from a “strong sell” rating to a “hold” rating in a report on Monday, May 25th. Royal Bank Of Canada lowered shares of CareTrust REIT from an “outperform” rating to a “sector perform” rating and dropped their price objective for the company from $44.00 to $43.00 in a research note on Friday, August 14th. Mizuho set a $45.00 target price on shares of CareTrust REIT in a research report on Friday, May 22nd. Wells Fargo & Company dropped their price target on shares of CareTrust REIT from $47.00 to $44.00 and set an “overweight” rating on the stock in a research report on Tuesday, September 1st. Finally, Huntington assumed coverage on CareTrust REIT in a report on Thursday, September 10th. They set an “outperform” rating and a $44.00 price objective for the company. One analyst has rated the stock with a Strong Buy rating, ten have assigned a Buy rating and three have issued a Hold rating to the stock. Based on data from MarketBeat.com, the stock presently has an average rating of “Moderate Buy” and an average price target of $44.50.

About CareTrust REIT

CareTrust REIT, Inc is a healthcare-focused real estate investment trust that owns and manages a portfolio of healthcare-related properties across the United States. The company primarily invests in properties that are leased to healthcare operators under long-term, typically triple-net lease agreements.

CareTrust’s portfolio includes skilled nursing facilities, assisted living facilities, independent living communities, memory care properties and other healthcare-related real estate. Its tenants are responsible for operating the facilities and generally cover property-level expenses such as taxes, insurance and maintenance under the terms of the leases.

CareTrust was established in 2014 through a separation from The Ensign Group, a healthcare services company.