Zacks Investment Research cut shares of Community Health Systems (NYSE:CYH) from a hold rating to a sell rating in a report published on Monday morning.
According to Zacks, “Community Health’s shares have underperformed the industry in a year's time. Following lackluster third-quarter results, the company has lowered its 2017 earnings per share guidance. The company has seen a continuous decline in its revenues that have been putting pressure on the bottom line. The company has seen its Zacks Consensus Estimate for 2017 and 2018 earnings being revised in the past 60 days. However, the company is well poised for long term growth on the back of its inorganic strategies. The company’s frequent divestitures to streamline core operations have helped it lower its debt burden. As a part of their restructuring plan, the company has started taking up certain corrective measures in order to bring improvement to its top line.”
Several other equities analysts have also recently weighed in on the stock. ValuEngine cut shares of Community Health Systems from a sell rating to a strong sell rating in a research note on Tuesday, November 7th. Morgan Stanley decreased their price target on shares of Community Health Systems from $6.50 to $4.50 and set an underweight rating for the company in a research note on Friday, November 3rd. Credit Suisse Group started coverage on shares of Community Health Systems in a research note on Thursday, November 2nd. They set an underperform rating and a $3.50 price target for the company. Jefferies Group reaffirmed a hold rating and set a $7.00 price target on shares of Community Health Systems in a research note on Tuesday, September 5th. Finally, Robert W. Baird reaffirmed a hold rating and set a $7.00 price target on shares of Community Health Systems in a research note on Friday, September 1st. Six research analysts have rated the stock with a sell rating, twelve have assigned a hold rating and one has issued a buy rating to the company’s stock. The stock presently has an average rating of Hold and a consensus target price of $6.47.
Community Health Systems (NYSE:CYH) last issued its quarterly earnings results on Wednesday, November 1st. The company reported ($0.77) earnings per share for the quarter, missing the consensus estimate of ($0.30) by ($0.47). The business had revenue of $3.67 billion for the quarter, compared to the consensus estimate of $3.70 billion. Community Health Systems had a negative return on equity of 3.10% and a negative net margin of 3.97%. Community Health Systems’s revenue was down 16.3% compared to the same quarter last year. During the same period in the prior year, the business earned ($0.35) earnings per share. research analysts expect that Community Health Systems will post -1.25 earnings per share for the current fiscal year.
In other news, major shareholder Tian Qiao Chen bought 100,164 shares of the firm’s stock in a transaction that occurred on Thursday, December 7th. The stock was acquired at an average cost of $3.96 per share, with a total value of $396,649.44. The acquisition was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. 4.70% of the stock is currently owned by company insiders.
Several large investors have recently added to or reduced their stakes in CYH. JPMorgan Chase & Co. grew its stake in shares of Community Health Systems by 226.4% in the third quarter. JPMorgan Chase & Co. now owns 4,228,000 shares of the company’s stock valued at $31,880,000 after buying an additional 2,932,700 shares in the last quarter. Dimensional Fund Advisors LP grew its stake in shares of Community Health Systems by 131.9% in the second quarter. Dimensional Fund Advisors LP now owns 4,957,164 shares of the company’s stock valued at $49,374,000 after buying an additional 2,819,955 shares in the last quarter. Franklin Resources Inc. bought a new position in shares of Community Health Systems in the second quarter valued at $14,946,000. QS Investors LLC bought a new position in shares of Community Health Systems in the second quarter valued at $5,761,000. Finally, Gotham Asset Management LLC grew its stake in shares of Community Health Systems by 102.8% in the second quarter. Gotham Asset Management LLC now owns 963,388 shares of the company’s stock valued at $9,595,000 after buying an additional 488,336 shares in the last quarter. 94.74% of the stock is owned by institutional investors and hedge funds.
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About Community Health Systems
Community Health Systems, Inc is an operator of general acute care hospitals and outpatient facilities in communities across the country. The Company operates through hospital operations segment, which includes its general acute care hospitals and related healthcare entities that provide inpatient and outpatient healthcare services.
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