The Ensign Group has acquired the operations of three skilled nursing facilities in Southern California, effective January 1, 2021. The company did not disclose the financial terms of the deal.
Ensign (ENSG) acquired Golden Hill Post Acute, a skilled nursing facility with 99 skilled nursing beds located in San Diego, California, St. Catherine Healthcare, a skilled nursing facility with 99 skilled nursing beds located in Fullerton, California, and Camino Healthcare, a skilled nursing facility with 99 skilled nursing beds located in Hawthorne, California. The acquisitions will be subject to a long-term, triple net lease.
With the acquisition of these three skilled nursing facilities, Ensign’s portfolio is now comprised of 231 healthcare operations, 24 of which also include assisted living operations, across thirteen states. The company acquired two skilled nursing facilities in Texas in the last two months of 2020. (See ENSG stock analysis on TipRanks)
CEO Barry Port stated, “We are excited to add these three operations to some of our most mature clusters in California.”
“While these acquisitions are taking place in the midst of a pandemic, our clinical and operational leadership have been preparing for these acquisitions for several months and we are confident that all the planning and preparation of some of our most experienced leaders will result in a smooth transition,” Port added.
In November 2020, Stephens analyst Scott Fidel upgraded Ensign to Buy from Hold and increased the price target to $79 from $61. The analyst believes that the company has shown “excellent business execution” during the pandemic and expects Senior Nursing Facility occupancy rates to recover as the COVID-19 vaccine is distributed initially to high-risk nursing home populations.
Overall, the Street is bullish on Ensign Group, backed by 3 unanimous Buys. Shares of Ensign Group surged 61.2% in 2020. The average price target of $71.67 indicates a possible downside of 1.7% in the months ahead.
Related News:
Activist Investor Carl Icahn Trims Herbalife Stake In $600M Deal
Pfizer and BioNTech to Offer COVID-19 Vaccine to Participants Who Got Placebo – Report
New York Life Snaps Up Group Life & Disability Insurance Business From Cigna For $6.3B
