ADUS Addus HomeCare Corporation

Addus HomeCare (NASDAQ: ADUS) has experienced recent share price weakness, making investors question if it's a value opportunity. A Discounted Cash Flow (DCF) analysis suggests the stock is undervalued by 49.3%, while its Price-to-Earnings (PE) ratio makes it appear modestly expensive compared to its proprietary Fair Ratio. The article encourages investors to use "Narratives" to combine qualitative beliefs with quantitative assumptions for a tailored valuation.

Harbor Capital Advisors Inc. reduced its stake in Addus HomeCare Corporation by 62.7% during the third quarter, selling 42,163 shares and retaining 25,056 shares valued at approximately $2.96 million. Despite this, other institutional investors increased their positions, and Addus HomeCare recently reported strong Q3 earnings, beating analyst estimates with $1.56 EPS and $362.3 million in revenue. The company maintains a "Moderate Buy" consensus rating among analysts with an average price target of $137.11.

Addus HomeCare (NASDAQ: ADUS) has seen recent stock recovery after a period of decline and is expanding through acquisitions and new contracts. While its P/E ratio is in line with the healthcare industry, a Discounted Cash Flow analysis suggests the stock may be undervalued by 47.4%, pointing to potential opportunities despite investor caution due to Medicaid discussions.

Analysts have given Addus HomeCare Corporation (NASDAQ:ADUS) a consensus "Moderate Buy" rating, with an average 12-month target price of $137.11. This follows recent strong Q3 earnings where the company exceeded revenue and EPS estimates. Despite some insider selling, institutional investors have increased their stakes, reflecting confidence in the home care provider.

Addus HomeCare (NASDAQ:ADUS) Director Esteban Lopez sold 150 shares of the company's stock on December 15th at an average price of $115.18, totaling $17,277. This sale reduced his stake by 3.9% to 3,700 shares. The company's stock currently trades at $113.49 and analysts maintain a "Moderate Buy" rating with an average target price of $137.11.

Addus HomeCare Corporation (NASDAQ:ADUS) is estimated to be undervalued by 48% according to a Discounted Cash Flow (DCF) model, with a fair value of US$219 compared to its current share price of US$115. This valuation implies a significant discount to its intrinsic value, which is also 55% higher than the analyst price target of US$142. The analysis relies on a 2-stage growth model and highlights the company's financial health, management, and alternatives.