Pennant Group bounces back after equity raise

Pennant group

03/10/2024 18:16

(Changes headline, updates stock activity, adds context)
    ** Pennant Group's  PNTG.O  shares last up 4.8% at $34.03 on
Thurs after healthcare services firm raises equity
    ** PNTG on track to snap 2-session losing streak
    ** Home health, hospice and senior living operator late Weds
announced 3.5 mln share offering priced at $31 for $108.5 mln
gross proceeds
    ** Shares on Tues lost ~8% and on Weds lost another 1.4% to
close at $32.47
    ** Co intends to use net proceeds to repay debt under its
revolver and for general purposes
    ** Offering size represents nearly 12% of total shares
outstanding
    ** Citigroup and Truist lead bookrunners, joined by Wells
Fargo and RBC
    ** In Aug, Pennant posted Q2 top and bottom line beat, per
LSEG, as rev grew ~28% y/y to ~$169 mln
    ** It also boosted annual guidance, saying expects rev of
$654-$694.5 mln and adj EPS of 89-95 cents
    ** Co in Aug completed first part of an acquisition of
Washington and Idaho assets from privately-owned Signature
Health at Home
    ** With move on the session, PNTG up ~145% YTD. Stock closed
at $10.92 a yr ago

 (Lance Tupper is a Reuters market analyst. The views expressed
are his own)
 ((lance.tupper@thomsonreuters.com
lance.tupper@tr.com 1-646-279-6380))