Zacks Investment Research downgraded shares of Community Health Systems (NYSE:CYH) from a hold rating to a sell rating in a research report report published on Monday.
According to Zacks, “Shares of Community Health have underperformed the industry in a year’s time. The company has seen a continuous decline in revenues that has been putting pressure on the bottom line. Rising expenses also weigh on the margins. The company has seen the Zacks Consensus Estimate for 2018 earnings being revised downward in the last 60 days. However, the company is well poised for long-term growth on the back of its inorganic strategies. Frequent divestitures to streamline core operations have helped it lower its debt burden. As part of its restructuring plan, the company has started taking up certain corrective measures in order to bring improvement to its top line.”
Several other analysts also recently issued reports on the company. Mizuho began coverage on Community Health Systems in a research note on Friday, March 23rd. They issued a neutral rating for the company. ValuEngine upgraded Community Health Systems from a strong sell rating to a sell rating in a research note on Monday, March 19th. Jefferies Group set a $5.00 price target on Community Health Systems and gave the company a hold rating in a research note on Tuesday, March 6th. Cantor Fitzgerald restated a hold rating and issued a $6.00 price target on shares of Community Health Systems in a research note on Thursday, February 1st. Finally, Wells Fargo began coverage on Community Health Systems in a research note on Tuesday, January 30th. They issued an underperform rating and a $4.50 price target for the company. Eight research analysts have rated the stock with a sell rating, eleven have given a hold rating and one has assigned a buy rating to the company. The stock presently has an average rating of Hold and an average target price of $6.04.
Community Health Systems (NYSE:CYH) last posted its earnings results on Tuesday, February 27th. The company reported ($0.25) earnings per share for the quarter, topping analysts’ consensus estimates of ($0.34) by $0.09. The business had revenue of $3.06 billion for the quarter, compared to analyst estimates of $3.53 billion. Community Health Systems had a negative return on equity of 14.18% and a negative net margin of 16.01%. The firm’s revenue was down 31.6% compared to the same quarter last year. During the same period in the previous year, the firm earned $0.46 EPS. equities analysts forecast that Community Health Systems will post -1.33 EPS for the current year.
In related news, major shareholder Tian Qiao Chen bought 995,551 shares of the business’s stock in a transaction dated Wednesday, January 10th. The stock was purchased at an average cost of $3.97 per share, for a total transaction of $3,952,337.47. The acquisition was disclosed in a filing with the SEC, which is accessible through the SEC website. Corporate insiders own 4.70% of the company’s stock.
Large investors have recently added to or reduced their stakes in the company. Her Majesty the Queen in Right of the Province of Alberta as represented by Alberta Investment Management Corp bought a new stake in shares of Community Health Systems during the 4th quarter valued at $100,000. FrontFour Capital Group LLC bought a new stake in shares of Community Health Systems during the 3rd quarter valued at $113,000. Macquarie Group Ltd. bought a new stake in shares of Community Health Systems during the 3rd quarter valued at $154,000. Acadian Asset Management LLC bought a new stake in shares of Community Health Systems during the 4th quarter valued at $157,000. Finally, Bank of Montreal Can lifted its position in shares of Community Health Systems by 882.1% during the 4th quarter. Bank of Montreal Can now owns 37,084 shares of the company’s stock valued at $158,000 after acquiring an additional 33,308 shares during the period. Hedge funds and other institutional investors own 94.72% of the company’s stock.
About Community Health Systems
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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