Shares of assisted living facility operators were mixed in afternoon trading, with Brookdale Senior Living stock falling after the company said it will reduce its dividend.
Chicago-based Brookdale Senior Living Inc. halved its dividend to 25 cents in order to help fund a repurchase of up to $150 million in stock. Shares fell 62 cents, or 2.6 percent, to $22.83.
Jefferies analyst Frank Morgan said Brookdale will return more money to shareholders through the combined buyback and dividend than it would have through the larger dividend alone. He called the buyback a sign of confidence from management.
Shares of Sunrise Senior Living Inc. gained 96 cents, or 5.3 percent, to $19.21, rebounding from a steep plunge that took the stock to a three-year low on Tuesday. The New York Stock Exchange said it will suspend Sunrise shares if the company does not file its 2006 Form 10-K by Monday. It received the extension from the NYSE early Wednesday.
The stock lost a quarter of its value in the last three days of trading.
Elsewhere in the sector, in heavy trading, shares of Assisted Living Concepts Inc. picked up 9 cents to $5.72.
Emeritus Corp. stock sank 49 cents, or 2.1 percent, to $22.11. Shares have fallen for three consecutive sessions.
Sun Healthcare Group Inc. added 7 cents to $12.80.
Shares of National Healthcare Corp. edged up 20 cents to $50.13.
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