Why Does Smart Money Like Kindred Healthcare, Inc. (KND)?

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Kindred Healthcare is a value play. With an estimated 2016 core earnings of $0.8 to $1 per share and a quarterly dividend of $0.12 per share, Kindred Healthcare trades for a low forward P/E multiple of 11 and yields 4.58%. As the actual effect of the new LTAC rules occur in the fourth quarter, Kindred Healthcare’s results could come in better than expected and the reports could provide positive catalysts for the stock.

Of the 750 investors we track, 17 funds owned $207.17 million worth of Kindred Healthcare, Inc. (NYSE:KND)’s stock, which accounted for 21.60% of the float on June 30, down from 24 funds and $252.65 million, respectively, a quarter earlier.

In terms of individual hedge fund movement, Conan Laughlin‘s North Tide Capital trimmed its position by 4% in the second quarter to 8 million shares held at the end of June. Likewise, Clint Carlson‘s Carlson Capital cut its position by 5% to 4 million shares. Overall, four of the top five shareholders of Kindred from our database pared their positions slightly in the second quarter.

Disclosure: none

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