Should You Buy Genesis Healthcare Inc. (NYSE:GEN) Right Now? Here’s How to Decide

Genesis Healthcare Inc. (NYSE:GEN) shares fell to a low of $0.8303 before closing at $0.89. Intraday shares traded counted 0.53 million, which was 57.57% higher than its 30-day average trading volume of 1.25M. GEN’s previous close was $0.89 while the outstanding shares total 109.72M. The firm has a beta of 1.36, a 12-month trailing P/E ratio of 2.71, and a growth ratio of 0.27. The stock’s Relative Strength Index (RSI) is 64.46, with weekly volatility at 5.90% and ATR at 0.06. The GEN stock’s 52-week price range has touched low of $0.58 and a $1.86 high. The stock traded higher over the last trading session, gaining 0.59% on 07/30/20.

Investors have identified the Medical Care Facilities company Genesis Healthcare Inc. as an interesting stock but before investments are made there, an in-depth look at its trading activities will have to be conducted. The share is trading with a market value of around $148.93 million, the company now has both obstacles and catalysts that affect them and they came from their mode of operations. With the company affected by events currently, it is a perfect time to analyze the numbers behind the firm in order to come up with a rather realistic picture of what this stock is.

Genesis Healthcare Inc. (GEN) Fundamentals that are to be considered.

When analyzing a stock, the first fundamental thing to take into account is the balance sheet. How healthy the balance sheet of a company is will determine if the company will be able to carry out all its financial and non-financial obligations and also keep the faith of its investors. For GEN, the company has in raw cash 70.79 million on their books with 248.28 million currently as liabilities. How the trend is over time is what investors should be concerned about. The company has a healthy balance sheet as their debt profile has been on a decline. In terms of their assets, the company currently has 773781000 million total, with 977694000 million as their total liabilities.

GEN were able to record -15.17 million as free cash flow during the third quarter of the year, this saw their quarterly net cash flow reduce by -4.25 million. In cash movements, the company had a total of 15.25 million as operating cash flow.

Potential earnings growth for Genesis Healthcare Inc. (GEN)

In order to determine the future investment potential for this stock, we will have to analyze key trends that affect it. During the third quarter of the year, Genesis Healthcare Inc. recorded a total of 1.09 billion in revenue. This figure implies that they witnessed a quarterly year/year change in their earnings with -6.35% coming in sequential stages and their sales for the third quarter reducing by -3.95%.

What matters though is how it ends. When the core data for the company is broken down, then the stock sounds interesting. The company spent 1.09 billion trying to sell their products during the last quarter, with the result yielding a gross income of 1.1 billion. This allows shareholders to hold on to 109.72M with the revenue now reading 0.31 cents per share. This is a figure that is close to analyst’s prediction for their fourth quarter.

Having a look at the company’s valuation, the company is expected to record 0.10 total earnings per share during the next fiscal year. It is very important though to remember that the importance of trend far outweighs that of outlook. This analysis has been great and getting further updates on GEN sounds very interesting.

Is the stock of GEN attractive?

In related news, EVP and CFO, DiVittorio Thomas sold 6,671 shares of the company’s stock in a transaction that recorded on Jun 03. The sale was performed at an average price of 0.96, for a total value of 6,371. As the sale deal closes, the EVP and Chief Nursing Officer, Reifsnyder JoAnne Susan now sold 5,313 shares of the company’s stock, valued at 5,074. Also, SVP and Treasurer, Young Stephen Scott sold 3,315 shares of the company’s stock in a deal that was recorded on Jun 03. The shares were price at an average price of 0.96 per share, with a total market value of 3,166. Following this completion of acquisition, the COO, Bach Paul David now holds 7,457 shares of the company’s stock, valued at 7,121. In the last 6 months, insiders have changed their ownership in shares of company stock by 8.60%.