Why the Summerset (ASX:SNZ) share price is in focus today

The Summerset Group Holdings Ltd (ASX: SNZ) share price is one to watch after a record quarterly sales result for the Kiwi aged care group.

| More on:
ASX share price on watch represented by surprised man with binoculars

Image source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

The Summerset Group Holdings Ltd (ASX: SNZ) share price is one to watch today after the release of a fourth quarter trading update from the New Zealand aged care operator.

Why is the Summerset share price on watch?

The Kiwi company operates retirement villages and provides aged care services across New Zealand and is dual-listed on New Zealand's exchange (NZX). 

Summerset reported 296 sales of occupation rights for the quarter ended 31 December 2020, including 176 new sales and 120 resales.

A sale of occupation rights refers to the sale of the rights to live in an aged care residence for a defined period of time.

The latest fourth quarter 2020 numbers represented the strongest quarterly sales result in Summerset's 23-year history.

Summerset CEO Julian Cook also noted the strong pipeline of sales ahead in the first quarter of 2021.  Mr Cook said 2021 pre-sales were "encouraging" with strong sales results in many of its new villages.

The Summerset share price has jumped 39.2% higher in the last 12 months, despite coronavirus restrictions. Shares in the Kiwi retirement village operator plummeted in the March 2020 bear market but have recovered strongly.

In fact, the Summerset share price closed last week just shy of its $12.06 record high set on 4 January 2021.

The group currently has a $2.7 billion market capitalisation with a price to earnings (P/E) ratio of 34.1 and a 1.03% dividend yield.

How do Aussie aged care operators stack up?

While the Summerset share price has been surging higher, Aussie aged care shares struggled to climb in 2020.

The Estia Health Ltd (ASX: EHE) share price is down 32.2% in the last year to $1.70 per share ($442.9 market capitalisation).

It was a similar story for fellow ASX-listed competitors Regis Healthcare Ltd (ASX: REG) and Japara Healthcare Ltd (ASX: JHC).

The Regis share price has slumped 25.9% lower in 12 months while Japara shares are down 33.3% to $0.68 per share.

Foolish takeaway

The Summerset share price will be one to watch in early trade after this morning's strong sales update. 

Should you invest $1,000 in Australian Clinical Labs Limited right now?

Before you buy Australian Clinical Labs Limited shares, consider this:

Motley Fool investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now... and Australian Clinical Labs Limited wasn't one of them.

The online investing service he’s run for over a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

And right now, Scott thinks there are 5 stocks that may be better buys...

See The 5 Stocks *Returns as of 30 April 2025

Motley Fool contributor Ken Hall has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

More on Share Market News

Man pointing at a blue rising share price graph.
Share Gainers

Guess which ASX 300 stock just rocketed 17%!

Investors are sending the ASX 300 stock soaring higher on Wednesday. But why?

Read more »

Broker written in white with a man drawing a yellow underline.
Broker Notes

Top brokers name 3 ASX shares to buy today

Here's what brokers are recommending as buys this week.

Read more »

A male investor wearing a blue shirt looks off to the side with a miffed look on his face as the share price declines.
Share Fallers

Why Aurizon, JB Hi-FI, Nuix, and Platinum shares are tumbling today

These shares are falling on hump day. But why?

Read more »

A young woman wearing overalls and a yellow t-shirt kicks one leg in the air showing excitement over the latest ASX 200 shares to hit 52-week highs
Share Gainers

Why Firefly, Kelsian, NAB, and Zip shares are roaring higher today

These shares are having a good time on hump day. Let's find out why.

Read more »

A man and woman sit at a desk staring intently at a laptop screen with papers next to them.
Opinions

Where I'd invest $5,000 in ASX 300 shares right now

These stocks look like excellent investments today.

Read more »

A man holding a cup of coffee puts his thumb up and smiles while at laptop.
Broker Notes

Goldman Sachs says these ASX 200 stocks are strong buys

The broker is feeling very bullish about these stocks. But why?

Read more »

Business woman watching stocks and trends while thinking
Share Market News

5 things to watch on the ASX 200 on Wednesday

Here's what to expect on the local market today.

Read more »

A woman's hand draws a stylised 'Top Ten' on a projected surface.
Share Gainers

Here are the top 10 ASX 200 shares today

It was another tough day for investors this Tuesday.

Read more »