The Ensign Group (NASDAQ:ENSG) Announces Quarterly Earnings Results, Beats Estimates By $0.07 EPS

The Ensign Group (NASDAQ:ENSG) issued its quarterly earnings results on Wednesday. The company reported $1.82 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $1.75 by $0.07, FiscalAI reports. The Ensign Group had a return on equity of 17.20% and a net margin of 6.80%.The business had revenue of $1.36 billion during the quarter, compared to analyst estimates of $1.37 billion. During the same quarter in the prior year, the business posted $1.49 EPS. The Ensign Group’s revenue for the quarter was up 20.2% compared to the same quarter last year. The Ensign Group updated its FY 2026 guidance to 7.410-7.610 EPS.

Here are the key takeaways from The Ensign Group’s conference call:

• The company reported record quarterly and annual results and issued 2026 guidance of $7.41–$7.61 diluted EPS and $5.77B–$5.84B revenue (midpoint +14.3% vs. 2025), signaling management expects continued growth next year.
• Management emphasized strong clinical outperformance versus peers—citing CMS data with roughly 24%–33% better survey results at state/county levels and a sustained advantage in 4–5 star ratings—which they say is driving referrals, higher acuity admissions, and improved skilled mix.
• Acquisition and portfolio expansion remain active: the company added 17 operations this quarter (1,371 beds), has closed 82 operations since 2024, and grew its REIT (Standard Bearer) to 154 properties, contributing rental revenue and strategic real estate optionality.
• Operational improvements on labor continue, including a 33% decline in Director of Nursing turnover, lower agency usage and overtime, and higher retention—factors management links to improving occupancy, Medicare days, and margins.
• Balance sheet and capital resources are strong (cash of $504M, >$590M available on the credit line, lease‑adjusted net debt/EBITDA ~1.77x), but management notes a seller-friendly market and higher valuations that can require paying premiums and introduce execution/reimbursement risks on some acquisitions.

The Ensign Group Stock Up 13.8%

Shares of NASDAQ ENSG opened at $197.16 on Friday. The firm’s 50-day moving average price is $177.12 and its 200-day moving average price is $173.27. The company has a current ratio of 1.46, a quick ratio of 1.46 and a debt-to-equity ratio of 0.07. The Ensign Group has a 12-month low of $118.73 and a 12-month high of $199.01. The stock has a market capitalization of $11.42 billion, a price-to-earnings ratio of 33.76, a P/E/G ratio of 1.80 and a beta of 0.88.

The Ensign Group Increases Dividend

The firm also recently announced a quarterly dividend, which was paid on Saturday, January 31st. Stockholders of record on Wednesday, December 31st were given a dividend of $0.065 per share. The ex-dividend date was Wednesday, December 31st. This represents a $0.26 annualized dividend and a dividend yield of 0.1%. This is a positive change from The Ensign Group’s previous quarterly dividend of $0.06. The Ensign Group’s dividend payout ratio is currently 4.65%.

Key The Ensign Group News

Here are the key news stories impacting The Ensign Group this week:

• Positive Sentiment: Management issued high FY‑2026 guidance (EPS $7.41–$7.61; revenue $5.77B–$5.84B), well above prior consensus — a direct bullish catalyst supporting multiple quarters of earnings growth expectations. Read More.
• Positive Sentiment: Q4 adjusted EPS of $1.82 beat estimates ($1.75) and showed solid year‑over‑year growth, which validates margin and operational improvement. Read More.
• Positive Sentiment: Operational metrics are strong: record occupancy and Medicare/skilled-revenue growth, plus healthy liquidity (~$504M cash + ~$592M available capacity), supporting both organic margin expansion and continued M&A. Read More.
• Positive Sentiment: Analyst coverage is constructive (recent buy/outperform notes and raised targets), which can amplify upside if guidance is executed. Read More.
• Neutral Sentiment: Management is actively adding assets (multiple acquisitions/real‑estate additions announced). These expand scale and future revenue but require successful integration to realize accretion. Read More.
• Neutral Sentiment: Investors can review the full Q4 / FY press release and supplemental metrics (detailed occupancy, payor mix, FFO and segment disclosure) to judge sustainability of the beat and guidance assumptions. Read More.
• Negative Sentiment: Service revenue for Q4 (~$1.36B) was marginally below some analyst estimates (~$1.37B); that small miss is a reminder that top-line execution must track management’s ambitious targets. Read More.
• Negative Sentiment: Insider selling disclosed (director sold 700 shares; broader pattern of insider sales noted by third‑party trackers). While not large vs. total holdings, repeated executive sales can create short‑term investor caution. Read More.

Insider Buying and Selling at The Ensign Group

In other news, Director Barry M. Smith sold 700 shares of the firm’s stock in a transaction that occurred on Monday, February 2nd. The stock was sold at an average price of $171.54, for a total value of $120,078.00. Following the completion of the sale, the director directly owned 23,552 shares of the company’s stock, valued at $4,040,110.08. This trade represents a 2.89% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. Also, Director John O. Agwunobi sold 146 shares of the business’s stock in a transaction that occurred on Wednesday, January 21st. The shares were sold at an average price of $178.31, for a total value of $26,033.26. Following the transaction, the director directly owned 9,087 shares in the company, valued at approximately $1,620,302.97. This represents a 1.58% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Over the last 90 days, insiders sold 50,315 shares of company stock valued at $9,013,767. Corporate insiders own 3.90% of the company’s stock.

Institutional Trading of The Ensign Group

Hedge funds and other institutional investors have recently added to or reduced their stakes in the company. Fiduciary Trust Co boosted its position in shares of The Ensign Group by 0.9% during the third quarter. Fiduciary Trust Co now owns 8,446 shares of the company’s stock valued at $1,459,000 after buying an additional 75 shares during the period. Larson Financial Group LLC boosted its holdings in The Ensign Group by 76.9% during the 3rd quarter. Larson Financial Group LLC now owns 207 shares of the company’s stock valued at $36,000 after acquiring an additional 90 shares during the period. Quadrant Capital Group LLC boosted its holdings in The Ensign Group by 1.7% during the 3rd quarter. Quadrant Capital Group LLC now owns 6,540 shares of the company’s stock valued at $1,130,000 after acquiring an additional 110 shares during the period. Captrust Financial Advisors grew its position in The Ensign Group by 1.7% in the 2nd quarter. Captrust Financial Advisors now owns 7,222 shares of the company’s stock valued at $1,114,000 after acquiring an additional 124 shares during the last quarter. Finally, Orion Porfolio Solutions LLC increased its stake in The Ensign Group by 1.8% in the second quarter. Orion Porfolio Solutions LLC now owns 9,474 shares of the company’s stock worth $1,461,000 after purchasing an additional 168 shares during the period. 96.12% of the stock is owned by hedge funds and other institutional investors.

Analysts Set New Price Targets

Several analysts recently issued reports on the company. Truist Financial increased their target price on The Ensign Group from $190.00 to $200.00 and gave the stock a “hold” rating in a research report on Monday, November 10th. UBS Group reiterated a “buy” rating and set a $220.00 price objective (up previously from $205.00) on shares of The Ensign Group in a research report on Wednesday, November 5th. Stephens upped their target price on shares of The Ensign Group from $185.00 to $200.00 and gave the stock an “overweight” rating in a research report on Wednesday, November 5th. Weiss Ratings reiterated a “buy (b)” rating on shares of The Ensign Group in a report on Thursday, January 22nd. Finally, Royal Bank Of Canada reissued an “outperform” rating and set a $206.00 price objective (up previously from $177.00) on shares of The Ensign Group in a report on Friday, November 14th. Five research analysts have rated the stock with a Buy rating and one has assigned a Hold rating to the company’s stock. According to MarketBeat.com, the stock currently has a consensus rating of “Moderate Buy” and an average target price of $196.40.

The Ensign Group Company Profile

The Ensign Group, Inc is a diversified provider of post-acute healthcare services in the United States, operating a network of skilled nursing, assisted living, independent living, home health and hospice care centers. The company’s model emphasizes integrated care by employing multidisciplinary teams—including nursing staff, therapists and physicians—to deliver personalized rehabilitation and long-term care services for seniors and other patients recovering from injury, illness or surgery.

Through its owned and managed centers, The Ensign Group offers a broad spectrum of rehabilitation services such as physical, occupational and speech therapy.