CareTrust REIT to Offer 15.5M Shares in Spot Secondary with JPMorgan, BofA, and RBC Capital as Joint Book Running Managers

CareTrust REIT is conducting a 15.5M share spot secondary offering with a price range of $31.70-$32.70. JPMorgan, BofA, and RBC Capital are joint book running managers for the offering.

CareTrust REIT (NYSE: CTRE) has announced plans to conduct a secondary offering of 15.5 million shares of its common stock. The offering will take place in the range of $31.70 to $32.70 per share. JPMorgan, Bank of America (BofA), and RBC Capital are the joint book-running managers for the offering [1].

The proceeds from this offering will be contributed to CTR Partnership, the company's operating partnership. The funds will be used to finance new investments and to repay the borrowings outstanding on its revolving credit facility. As of the close of trading on July 1, 2025, CTRE's stock price was $32.50, down by 1.48% after hours [1].

Analysts have provided a mixed outlook on CTRE. The consensus rating is a Moderate Buy, based on 6 buy ratings, 1 hold rating, and 1 sell rating [2]. The average 12-month price target among analysts is $33.71, representing a 2.56% upside potential from the current price of $32.87. The highest price target is $38.00, while the lowest is $28.00 [2].

Key analysts have expressed varying opinions. RBC Capital reiterated a Buy rating with a price target of $36.00, while Raymond James also maintained a Buy rating with a price target of $35.00. Deutsche Bank upgraded CTRE to a Buy rating from Hold with a price target of $31.00. However, Wedbush reaffirmed a Sell rating with a price target of $26.00 to $28.00 [2].

The financial outlook for CTRE remains promising, with analysts expecting the company to beat its earnings and sales estimates. The next quarter's earnings estimate is $0.35, with a range of $0.33 to $0.38. CTRE has a strong track record of outperforming its industry peers in terms of earnings and sales estimates [2].

The secondary offering is a strategic move by CareTrust REIT to strengthen its financial position and fund future growth initiatives. Investors should closely monitor the offering and the company's financial performance in the coming quarters.

References:
[1] https://seekingalpha.com/news/4484206-caretrust-reit-announces-launch-of-public-offering-of-common-stock
[2] https://www.tipranks.com/stocks/ctre/forecast