Community Health Systems (NYSE:CYH) was downgraded by Zacks Investment Research from a “buy” rating to a “hold” rating in a research report issued on Thursday.
According to Zacks, “Community Health has been successfully continuing with its inorganic growth acceleration via acquisitions over the past few years. As part of its restructuring plan, the company has started taking up certain corrective measures in order to add value to its top line. Frequent divestitures to streamline its core operations have helped it lower its debt burden. The company’s shares have declined comparing unfavorably with its industry’s growth, in a year’s time. However, it has seen a persistent decline in revenues due to reduced number of hospitals, which has been putting pressure on the bottom line. Rising expenses also weigh on its margins. Moreover, a weaker 2018 guidance remains a concern for the company.”
Other equities research analysts have also issued research reports about the company. ValuEngine raised Community Health Systems from a “hold” rating to a “buy” rating in a research note on Saturday, July 28th. Robert W. Baird reissued a “hold” rating and issued a $4.00 target price (down previously from $5.00) on shares of Community Health Systems in a research note on Friday, July 27th. Mizuho set a $4.00 target price on Community Health Systems and gave the company a “hold” rating in a research note on Friday, July 27th. Jefferies Financial Group reissued a “hold” rating and issued a $4.00 target price on shares of Community Health Systems in a research note on Friday, July 27th. Finally, SunTrust Banks reissued a “hold” rating and issued a $3.00 target price on shares of Community Health Systems in a research note on Friday, July 20th. Eight equities research analysts have rated the stock with a sell rating, eight have assigned a hold rating and one has issued a buy rating to the stock. The stock presently has an average rating of “Hold” and a consensus price target of $3.88.
Community Health Systems (NYSE:CYH) last issued its quarterly earnings results on Thursday, July 26th. The company reported ($0.01) earnings per share (EPS) for the quarter, topping the Thomson Reuters’ consensus estimate of ($0.43) by $0.42. Community Health Systems had a negative return on equity of 36.38% and a negative net margin of 16.16%. The firm had revenue of $3.56 billion during the quarter, compared to analyst estimates of $3.52 billion. During the same quarter in the previous year, the company posted ($0.25) earnings per share. The company’s revenue was down 14.0% compared to the same quarter last year. Equities research analysts anticipate that Community Health Systems will post -1.49 earnings per share for the current fiscal year.
In other Community Health Systems news, EVP Benjamin C. Fordham purchased 10,000 shares of Community Health Systems stock in a transaction that occurred on Tuesday, August 14th. The shares were bought at an average price of $3.16 per share, for a total transaction of $31,600.00. Following the acquisition, the executive vice president now directly owns 120,629 shares in the company, valued at $381,187.64. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through this link. In the last 90 days, insiders have purchased 25,000 shares of company stock worth $83,350. 3.80% of the stock is owned by company insiders.
A number of large investors have recently made changes to their positions in the stock. BlackRock Inc. increased its holdings in Community Health Systems by 5.8% during the 2nd quarter. BlackRock Inc. now owns 15,839,085 shares of the company’s stock valued at $52,587,000 after purchasing an additional 872,001 shares during the period. Dimensional Fund Advisors LP increased its holdings in Community Health Systems by 5.1% during the 1st quarter. Dimensional Fund Advisors LP now owns 8,437,790 shares of the company’s stock valued at $33,414,000 after purchasing an additional 408,397 shares during the period. Saba Capital Management L.P. increased its holdings in Community Health Systems by 11.4% during the 2nd quarter. Saba Capital Management L.P. now owns 8,213,005 shares of the company’s stock valued at $27,267,000 after purchasing an additional 837,427 shares during the period. Connor Clark & Lunn Investment Management Ltd. increased its holdings in Community Health Systems by 17.2% during the 2nd quarter. Connor Clark & Lunn Investment Management Ltd. now owns 5,097,383 shares of the company’s stock valued at $16,923,000 after purchasing an additional 749,092 shares during the period. Finally, Schwab Charles Investment Management Inc. increased its holdings in Community Health Systems by 8.0% during the 2nd quarter. Schwab Charles Investment Management Inc. now owns 1,345,882 shares of the company’s stock valued at $4,469,000 after purchasing an additional 99,919 shares during the period. Institutional investors own 96.46% of the company’s stock.
Community Health Systems Company Profile
Community Health Systems, Inc, together with its subsidiaries, owns, leases, and operates general acute care hospitals in the United States. It offers general acute care, emergency room, general and specialty surgery, critical care, internal medicine, obstetrics, diagnostic, psychiatric, and rehabilitation services, as well as skilled nursing and home care services.
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