Nursing home chain Advocat has signed a lease to reopen a facility in western Kentucky that closed a year ago after it was decertified by the Centers for Medicare and Medicaid Services. The Brentwood-based company has an option to buy the 88-bed center in the next five years.
The California State Teachers' Retirement System is asking shareholders of National Health Investors to vote for its proposal to have unopposed director candidates require a majority of votes cast in order to get on or stay on the company's board. CalSTRS says a change from the plurality vote system would put Murfreesboro-based NHI in line with a majority of S&P 500 companies. NHI's board isn't taking a stance on the proposal.
While the Board of Directors does not believe this proposal would increase accountability given the fiduciary duties to which each director is already subject under Maryland law, the Board of Directors understands that the majority voting standard would provide some shareholders a level of comfort. This proposal will provide shareholders with an opportunity to express their views on this topic.
Separately, NHI's board also is asking shareholders to hike the number of common shares authorized to 100 million from 40 million. The company (Ticker: NHI) currently has about 28 million shares outstanding.
John Rijos, co-president and COO of Brentwood-based Brookdale Senior Living, last week sold almost $900,000 worth of his shares in the company. Brookdale stock (Ticker: BKD) has climbed almost 40 percent in the past three months. Rijos still owns about $10 million worth of the company. Separately, Executive Vice President Gregory Richard unloaded almost $200,000 of stock.
UBS Securities analyst Justin Lake has jumped on the bandwagon touting HCA shares following the hospital giant's strong fourth-quarter numbers. He has raised his price target for HCA (Ticker: HCA) to $35 from $26, which means he sees another 20 percent of upside — even though the stock is up 29 percent in the past month.
Also upbeat — but about shares of Brookdale Senior Living — is Stifel Nicolaus researcher Jerry Doctrow, who has hiked his rating of the nursing home operator to 'buy' from 'hold.' Doctrow's price target of 25 leaves more than 30 percent of upside for investors. Brookdale (Ticker: BKD) has climbed 16 percent in the past three months.