Sonida senior living VP Michael Karicher buys $44,000 in stock

Michael Karicher, Vice President and Chief People Officer at Sonida Senior Living, Inc. (NYSE:SNDA), has recently acquired 2,000 shares of the company’s common stock. The transaction, dated November 15, 2024, was executed at a price of $22 per share, totaling $44,000. Following this purchase, Karicher's direct ownership in the company stands at 46,965 shares. This move reflects his continued confidence in the company’s prospects.

In other recent news, Sunita Senior Living announced significant growth during its third-quarter earnings call, including a record 87% occupancy rate, a marked increase in net operating income, and strategic financial activities such as acquisitions, a new line of credit, and extended mortgage terms with Fannie Mae (OTC:). The company's management expressed optimism about future growth, backed by strong operational performance and a promising acquisition pipeline.

Sunita Senior Living's financial activities included acquiring 14 new communities, a $130 million equity offering, and a $150 million line of credit. The company's net operating income for same-store communities rose by 18.3%, excluding non-recurring grant income. The company's management is confident about exceeding a portfolio-wide occupancy goal of 90% in the future.

The company added 2,000 units in 2024, marking a 30% increase in its operating portfolio. Sunita Senior Living is focused on reducing its debt and improving its debt-to-EBITDA ratio, with a target below 7x. Management anticipates achieving positive recurring cash flow by the end of 2024.

However, resident rates saw a slight decline from Q2 2024 due to a shift in occupancy mix. Operating expenses, while showing signs of stabilization, remain a consideration as labor costs are a significant portion of revenue.

Despite these challenges, Sunita Senior Living reported 14 consecutive quarters of occupancy growth in the same-store portfolio. The company's year-to-date capital investments of over $18 million are targeting NOI-generating projects, expected to enhance performance in 2025. These are the recent developments in Sunita Senior Living's operations.

InvestingPro Insights

Michael Karicher's recent acquisition of Sonida Senior Living shares comes at an interesting time for the company. According to InvestingPro data, SNDA's stock has experienced significant volatility recently, with a 9.77% decline in the past week and a 20.17% drop over the last month. Despite these short-term setbacks, the company's stock has shown impressive performance over the longer term, boasting a 139.22% total return over the past year.

This insider purchase aligns with some positive financial indicators. Sonida's revenue growth stands at 10.95% for the last twelve months as of Q3 2024, with quarterly revenue growth of 14.1% in the same period. The company's EBITDA has also seen substantial growth, increasing by 29.71% in the last twelve months.

However, investors should note that Sonida is currently operating at a loss, with an adjusted operating income of -$12.86 million in the last twelve months. This is reflected in the company's negative P/E ratio of -6.48, indicating that the company is not yet profitable.

InvestingPro Tips highlight that while Sonida's stock has taken a hit recently, it has delivered a high return over the last year. Additionally, the company's liquid assets exceed its short-term obligations, which could provide some financial stability.

For a more comprehensive analysis, InvestingPro offers 6 additional tips for Sonida Senior Living, providing investors with a deeper understanding of the company's financial health and market position.

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