CareTrust Appoints David Sedgwick as CEO; Shares Fall 6.1%

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California-based CareTrust REIT, Inc.’s (CTRE) Board has appointed David Sedgwick as CEO, effective January 1, 2022.

The real estate investment company is engaged in the ownership, acquisition, and leasing of healthcare-related properties. It offers independent living, memory care, and assisted and skilled nursing facilities.

CareTrust’s shares lost 6.1% on Friday to close at $21.08. (See Insiders’ Hot Stocks on TipRanks)

Appointment Details

Sedgwick will succeed Greg Stapley, the founding Chairman, and CEO of the company. Currently, Sedgwick is the President and COO at CareTrust. He will retain his position as President after becoming CEO.

Meanwhile, Stapley will continue with CareTrust for six months as Executive Chairman to help Sedgwick transition into the role.

Additionally, the Board has named Diana M. Laing as Lead Independent Director. Laing has been on the company’s Board since January 2019 and serves on the Audit, Compensation, and ESG Committees.

Management Comments

Commenting on the appointment, Stapley said, “Dave is the perfect combination of healthcare operating experience, real estate and finance knowledge, and capital markets acumen, and he brings tremendous energy, insight and relationships to the role.”

Sedgwick said, “There has been no daylight between Greg, me and the rest of the leadership team when it comes to our shared vision of matching great opportunities with great operators. I remain committed to that vision, and confident in our ability to drive long-term value for stakeholders.”

Wall Street’s Take

Last week, BMO Capital analyst Juan C. Sanabria maintained a Buy rating on the stock with a price target of $25 (18.6% upside potential).

The analyst expects the company to report earnings per share (EPS) of $0.12 in the fourth quarter of 2021.

Overall, the stock has a Moderate Buy consensus rating based on 2 Buys and 1 Hold. The average CareTrust REIT price target of $23.33 implies a 10.7% upside potential. Shares have lost 12.1% over the past six months.

Investor Opinions

TipRanks’ Stock Investors tool shows that investors currently have a Very Positive stance on CareTrust, with 2.3% of investors on TipRanks increasing their exposure to the stock over the past 30 days.

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