Investors who purchased stock in Brookdale Senior Living five years ago have seen their shares in the company fall by 91% during that time, according to an analysis posted Wednesday by Simply Wall St. Although the company’s share price gain of more than 57% in the past week might indicate the beginnings of a recovery, it’s unclear — particularly in this era of COVID-19 volatility — whether the increase is indicative of a more long-term recovery.
As the country’s largest senior living company posted a loss last year, the analysts said they believe Brookdale likely is more focused on revenue and revenue growth for now — but even that hasn’t shown much promise.
“It’s hard to be confident a company will be sustainable if revenue growth is negligible, and it never makes a profit,” the analysts said, adding that they are encouraged by some significant insider buying over the last three months. “That said, we think earnings and revenue growth trends are even more important factors to consider.”