HCA Holdings Inc (NYSE:HCA) was downgraded by Zacks Investment Research from a “buy” rating to a “hold” rating in a note issued to investors on Tuesday.
According to Zacks, “HCA Holdings is well positioned for long term growth on the back of its acute care hospitals. The shares of HCA Holdings have gained 17% in last one year outpacing the Zacks categorized Medical Hospital industry that registered a gain of 2% only. The company has also witnessed an increase in 2017 Zacks Consensus earnings estimates. Its top line has been growing over the past several quarters due to robust volumes, improved payor and service mix, and effective cost management. Its numerous acquisitions over the past many years have helped it gain a strong foothold in the industry. Its solid balance sheet, characterized by consistent generation of cash flows that are used for investment activities, is another positive. However, the company’s bad debts are likely to drain its bottom line. Also, pricing growth in the medium term is likely be affected as payor mix shifts.”
Several other research analysts have also commented on the company. Mizuho raised HCA Holdings from a “neutral” rating to a “buy” rating and set a $98.00 price objective on the stock in a research report on Monday. Royal Bank of Canada restated an “outperform” rating and set a $98.00 target price (up from $95.00) on shares of HCA Holdings in a research note on Wednesday, February 1st. Evercore ISI raised their target price on HCA Holdings to $88.00 and gave the company a “buy” rating in a research note on Tuesday, January 31st. Avondale Partners upgraded HCA Holdings from a “market perform” rating to an “outperform” rating and set a $96.00 target price for the company in a research note on Tuesday, January 17th. Finally, Piper Jaffray Companies initiated coverage on HCA Holdings in a research note on Wednesday, January 4th. They issued an “overweight” rating and a $81.00 price target for the company. Five research analysts have rated the stock with a hold rating and sixteen have issued a buy rating to the stock. HCA Holdings currently has a consensus rating of “Buy” and an average price target of $88.63.
HCA Holdings (NYSE:HCA) traded down 1.61% during mid-day trading on Tuesday, hitting $89.03. The stock had a trading volume of 3,284,044 shares. HCA Holdings has a 12-month low of $67.00 and a 12-month high of $91.03. The firm has a market cap of $32.95 billion, a PE ratio of 12.20 and a beta of 0.71. The company has a 50-day moving average of $85.30 and a 200-day moving average of $78.40.
HCA Holdings (NYSE:HCA) last released its quarterly earnings data on Tuesday, January 31st. The company reported $1.89 EPS for the quarter, beating the consensus estimate of $1.79 by $0.10. HCA Holdings had a negative return on equity of 44.79% and a net margin of 6.84%. The company had revenue of $10.64 billion for the quarter, compared to analyst estimates of $10.67 billion. During the same period last year, the company posted $1.69 earnings per share. The firm’s revenue was up 3.8% compared to the same quarter last year. Analysts expect that HCA Holdings will post $7.35 earnings per share for the current year.
In other HCA Holdings news, insider Michael S. Cuffe sold 4,300 shares of HCA Holdings stock in a transaction that occurred on Monday, January 9th. The stock was sold at an average price of $78.00, for a total value of $335,400.00. The sale was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, insider Charles J. Hall sold 100,000 shares of HCA Holdings stock in a transaction that occurred on Friday, February 3rd. The shares were sold at an average price of $83.79, for a total value of $8,379,000.00. Following the completion of the transaction, the insider now owns 76,969 shares of the company’s stock, valued at $6,449,232.51. The disclosure for this sale can be found here. Over the last 90 days, insiders sold 245,888 shares of company stock valued at $20,379,533. 3.10% of the stock is currently owned by insiders.
A number of institutional investors have recently modified their holdings of HCA. Harris Associates L P boosted its stake in HCA Holdings by 651.7% in the third quarter. Harris Associates L P now owns 5,086,931 shares of the company’s stock worth $384,724,000 after buying an additional 4,410,239 shares during the period. Norges Bank acquired a new stake in HCA Holdings during the fourth quarter worth $234,371,000. Chieftain Capital Management Inc. acquired a new stake in HCA Holdings during the fourth quarter worth $141,796,000. Brave Warrior Advisors LLC boosted its stake in HCA Holdings by 44.8% in the fourth quarter. Brave Warrior Advisors LLC now owns 3,617,751 shares of the company’s stock worth $267,786,000 after buying an additional 1,119,201 shares during the period. Finally, Elliott Management Corp acquired a new stake in HCA Holdings during the fourth quarter worth $65,508,000. Institutional investors own 72.27% of the company’s stock.
About HCA Holdings
HCA Holdings, Inc is a holding company. The Company, through its subsidiaries, owns and operates hospitals and related healthcare entities. As of December 31, 2016, the Company operated in two geographically organized groups, including the National and American Groups. As of December 31, 2016, the National Group included 84 hospitals, which were located in Alaska, California, Florida, southern Georgia, Idaho, Indiana, northern Kentucky, Nevada, New Hampshire, South Carolina, Utah and Virginia.
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