Pennant Group acquires home health operations from UnitedHealth for $146.5 million, expanding into the Southeast market.
Quiver AI Summary
The Pennant Group, Inc. announced the acquisition of certain operations from UnitedHealth Group, which were divested as part of an antitrust settlement with the U.S. Justice Department. This acquisition includes home health, hospice, and personal care services across Tennessee, Georgia, and Alabama for $146.5 million, consisting of 54 locations, with a significant majority of revenue stemming from home health services. The CEO, Brent Guerisoli, emphasized that this strategic move into the Southeast represents an exciting growth opportunity for Pennant, leveraging its operational strengths. COO John Gochnour expressed enthusiasm for welcoming the acquired teams into Pennant’s organization and highlighted their commitment to excellence. The company continues to seek growth opportunities in the health care sector.
Potential Positives
- Pennant Group acquired certain home health, hospice, and personal care services operations from UnitedHealth for $146.5 million, significantly expanding its service offerings and geographic footprint in the Southeast.
- The acquisition includes 54 locations primarily in Tennessee, which positions Pennant to leverage a certificate of need state for strategic growth opportunities.
- Pennant's leadership emphasizes this acquisition as a key strategic move, reflecting confidence in the company's operational capabilities and future growth in the home health and hospice sectors.
Potential Negatives
- The press release highlights that the acquisition was due to an antitrust settlement involving UnitedHealth and Amedisys, which may raise concerns about the competitive practices in the industry and could affect Pennant's reputation.
- Acquiring operations in a certificate of need state like Tennessee might introduce regulatory challenges and complications that could hinder operational effectiveness or delay integration.
- The statement on pursuing underperforming operations could suggest strategic vulnerability, indicating that Pennant might be facing challenges with its current operations and is looking for growth through acquisitions rather than organic expansion.
FAQ
What did Pennant Group announce on October 1, 2025?
Pennant Group announced the acquisition of certain operations from UnitedHealth Group, including home health and hospice services.
How much did Pennant Group pay for the UnitedHealth operations?
Pennant Group acquired the operations for a combined purchase price of $146.5 million.
What services were included in the acquisition?
The acquisition included home health, hospice, and personal care services across Tennessee, Georgia, and Alabama.
What is the strategic significance of this acquisition for Pennant Group?
This acquisition marks a strategic move for Pennant to enter the Southeast market and expand its operational capabilities.
Who advised Pennant Group on this transaction?
Pennant was advised on legal matters by Robinson & Cole LLP and Paul Hastings LLP, while Truist Securities provided financial advice.
Disclaimer: This is an AI-generated summary of a press release distributed by GlobeNewswire. The model used to summarize this release may make mistakes. See the full release here.
$PNTG Insider Trading Activity
$PNTG insiders have traded $PNTG stock on the open market 4 times in the past 6 months. Of those trades, 0 have been purchases and 4 have been sales.
Here’s a breakdown of recent trading of $PNTG stock by insiders over the last 6 months:
- JOANNE STRINGFIELD has made 0 purchases and 2 sales selling 5,665 shares for an estimated $164,387.
- BRENT GUERISOLI (Chief Executive Officer) sold 3,995 shares for an estimated $93,231
- KIRK STERLING CHENEY (EVP, GC and Corp Secy) sold 880 shares for an estimated $20,539
To track insider transactions, check out Quiver Quantitative's insider trading dashboard.
$PNTG Hedge Fund Activity
We have seen 82 institutional investors add shares of $PNTG stock to their portfolio, and 85 decrease their positions in their most recent quarter.
Here are some of the largest recent moves:
- OPHIR ASSET MANAGEMENT PTY LTD added 840,642 shares (+403.9%) to their portfolio in Q2 2025, for an estimated $25,093,163
- AMERIPRISE FINANCIAL INC added 480,949 shares (+inf%) to their portfolio in Q2 2025, for an estimated $14,356,327
- 8 KNOTS MANAGEMENT, LLC removed 361,217 shares (-12.0%) from their portfolio in Q2 2025, for an estimated $10,782,327
- FMR LLC removed 282,616 shares (-7.0%) from their portfolio in Q2 2025, for an estimated $8,436,087
- WELLINGTON MANAGEMENT GROUP LLP added 212,887 shares (+153.8%) to their portfolio in Q2 2025, for an estimated $6,354,676
- HILLSDALE INVESTMENT MANAGEMENT INC. removed 196,442 shares (-100.0%) from their portfolio in Q2 2025, for an estimated $5,863,793
- BLACKROCK, INC. removed 174,457 shares (-6.2%) from their portfolio in Q2 2025, for an estimated $5,207,541
To track hedge funds' stock portfolios, check out Quiver Quantitative's institutional holdings dashboard.
$PNTG Analyst Ratings
Wall Street analysts have issued reports on $PNTG in the last several months. We have seen 1 firms issue buy ratings on the stock, and 0 firms issue sell ratings.
Here are some recent analyst ratings:
- Stephens & Co. issued a "Overweight" rating on 06/10/2025
To track analyst ratings and price targets for $PNTG, check out Quiver Quantitative's $PNTG forecast page.
$PNTG Price Targets
Multiple analysts have issued price targets for $PNTG recently. We have seen 3 analysts offer price targets for $PNTG in the last 6 months, with a median target of $29.0.
Here are some recent targets:
- Raj Kumar from Stephens & Co. set a target price of $40.0 on 09/04/2025
- Stephen Baxter from Wells Fargo set a target price of $29.0 on 08/14/2025
- David Macdonald from Truist Securities set a target price of $28.0 on 07/16/2025
Full Release
EAGLE, Idaho, Oct. 02, 2025 (GLOBE NEWSWIRE) -- The Pennant Group, Inc. (NASDAQ: PNTG), the parent company of the Pennant group of affiliated home health, hospice, home care and senior living companies, announced today that on October 1, 2025, it acquired certain operations from UnitedHealth Group Incorporated (“UnitedHealth”). The operations were divested pursuant to UnitedHealth’s and Amedisys Inc.’s (“Amedisys”) antitrust settlement with the United States Justice Department.
Pennant is purchasing divested home health, hospice, and personal care services in Tennessee, Georgia and Alabama for a combined purchase price of $146.5 million. The asset package includes 54 locations.
The acquired agencies are primarily located in Tennessee, a certificate of need state. Approximately two-thirds of the revenue is connected to home health and one-third to hospice. Pennant and UnitedHealth have a transition services agreement in place to facilitate a smooth transition, and Pennant has prepared throughout 2025 to execute on the transaction.
“This marks an exciting new chapter in Pennant’s growth journey,” said Brent Guerisoli, Pennant's Chief Executive Officer. “Entering the Southeast is a strategic move for us, and we do so from a position of strength, building on proven leadership, operational excellence, and a clear vision for the future. This acquisition opens the door for emerging leaders in this new region to grow within Pennant’s innovative platform.”
“We are pleased to welcome these exceptional teams into the Pennant family,” said John Gochnour, Pennant’s Chief Operating Officer. “They are among the leading operators in our industries, and their commitment to clinical excellence and deep local ties to the region make this an exciting combination. We look forward to bringing these agencies into our portfolio and bringing the Pennant operating model to the Southeast United States.”
Mr. Guerisoli reiterated that Pennant will continue to pursue opportunities for growth in the home health, hospice and senior living industries, targeting strategic and underperforming operations of all sizes.
Pennant was advised on legal matters by Robinson & Cole LLP and Paul Hastings LLP, with Truist Securities serving as financial advisor on the transaction.
About Pennant :
The Pennant Group, Inc. is a holding company of independent operating subsidiaries that provide healthcare services through home health and hospice agencies and senior living communities located throughout Arizona, California, Colorado, Connecticut, Idaho, Montana, Nevada, Oklahoma, Oregon, Texas, Utah, Washington, Wisconsin and Wyoming. Each of these businesses is operated by a separate, independent operating subsidiary that has its own management, employees and assets. References herein to the consolidated "company" and "its" assets and activities, as well as the use of the terms "we," "us," "its" and similar verbiage, are not meant to imply that The Pennant Group, Inc. has direct operating assets, employees or revenue, or that any of the home health and hospice businesses, senior living communities or the Service Center are operated by the same entity. More information about Pennant is available at www.pennantgroup.com .
SOURCE: The Pennant Group, Inc.
