Truist Financial Issues Pessimistic Forecast for Community Health Systems (NYSE:CYH) Stock Price

Key Points

• Truist Financial cut Community Health Systems’ price target from $3.25 to $2.50 and maintained a “hold” rating, reflecting an implied 18.2% upside from the prior close.
• Analyst sentiment remains weak: MarketBeat reports an average “Reduce” rating and an average price target of $2.59, with one Buy, four Hold, and three Sell ratings.
• Community Health Systems missed quarterly expectations, reporting an adjusted loss of $0.48 per share versus a $0.29 consensus loss, while revenue fell 10.7% year over year to $2.76 billion.

Community Health Systems (NYSE:CYH - Get Free Report) had its price objective cut by research analysts at Truist Financial from $3.25 to $2.50 in a research note issued on Tuesday, Benzinga reports. The firm presently has a "hold" rating on the stock. Truist Financial's target price points to a potential upside of 18.20% from the company's previous close.

Several other equities analysts have also issued reports on the company. Royal Bank Of Canada decreased their price objective on Community Health Systems from $5.00 to $4.00 and set an "outperform" rating for the company in a research report on Monday, July 27th. UBS Group dropped their target price on shares of Community Health Systems from $3.00 to $2.55 and set a "neutral" rating on the stock in a report on Friday. Barclays cut their price target on shares of Community Health Systems from $3.00 to $2.50 and set an "underweight" rating on the stock in a research note on Thursday, July 23rd. Wells Fargo & Company lowered their price objective on shares of Community Health Systems from $2.00 to $1.00 and set an "underweight" rating for the company in a research report on Tuesday. Finally, Weiss Ratings lowered shares of Community Health Systems from a "hold (c-)" rating to a "sell (d+)" rating in a report on Wednesday, October 14th. One analyst has rated the stock with a Buy rating, four have issued a Hold rating and three have issued a Sell rating to the company. Based on data from MarketBeat.com, the stock presently has an average rating of "Reduce" and an average target price of $2.59.

Community Health Systems Trading Up 0.7%

Shares of Community Health Systems stock traded up $0.01 during mid-day trading on Tuesday, reaching $2.12. 770,782 shares of the stock were exchanged, compared to its average volume of 1,612,798. Community Health Systems has a fifty-two week low of $2.06 and a fifty-two week high of $3.92. The company has a market cap of $298.24 million, a price-to-earnings ratio of 8.17 and a beta of 1.88. The firm has a 50-day simple moving average of $2.85 and a 200 day simple moving average of $3.03.

Community Health Systems (NYSE:CYH - Get Free Report) last released its quarterly earnings results on Wednesday, October 28th. The company reported ($0.48) EPS for the quarter, missing the consensus estimate of ($0.29) by ($0.19). The company had revenue of $2.76 billion for the quarter, compared to the consensus estimate of $2.80 billion. Community Health Systems had a net margin of 0.31% and a negative return on equity of 6.66%. Community Health Systems's revenue for the quarter was down 10.7% compared to the same quarter last year. During the same period last year, the company earned $1.27 earnings per share. On average, research analysts predict that Community Health Systems will post -1.65 EPS for the current fiscal year.

Insiders Place Their Bets

In related news, Director William Jennings sold 40,000 shares of the stock in a transaction that occurred on Tuesday, August 25th. The stock was sold at an average price of $2.96, for a total transaction of $118,400.00. Following the sale, the director owned 38,468 shares of the company's stock, valued at $113,865.28. This represents a 50.98% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is available through the SEC website. 11.10% of the stock is owned by company insiders.

Institutional Inflows and Outflows

A number of hedge funds have recently added to or reduced their stakes in the company. Prescott Group Capital Management L.L.C. grew its position in Community Health Systems by 27.1% in the third quarter. Prescott Group Capital Management L.L.C. now owns 328,406 shares of the company's stock valued at $939,000 after acquiring an additional 70,000 shares during the last quarter. State of Wyoming lifted its holdings in shares of Community Health Systems by 21.8% in the third quarter. State of Wyoming now owns 141,030 shares of the company's stock worth $403,000 after acquiring an additional 25,259 shares during the last quarter. Sequoia Financial Advisors LLC acquired a new stake in shares of Community Health Systems in the 2nd quarter valued at approximately $64,000. Readystate Asset Management LP boosted its stake in shares of Community Health Systems by 37.3% in the 2nd quarter. Readystate Asset Management LP now owns 496,326 shares of the company's stock valued at $1,658,000 after purchasing an additional 134,829 shares in the last quarter. Finally, Apollo Management Holdings L.P. grew its holdings in shares of Community Health Systems by 3.2% during the 2nd quarter. Apollo Management Holdings L.P. now owns 11,859,526 shares of the company's stock valued at $39,611,000 after purchasing an additional 370,210 shares during the last quarter. 84.99% of the stock is owned by institutional investors.

About Community Health Systems

Community Health Systems, Inc NYSE: CYH is a healthcare services company that owns, leases, and operates general acute-care hospitals and related healthcare facilities in the United States. The company focuses primarily on serving communities in small cities and non-urban markets, providing access to hospital-based and outpatient care.

Its services generally include emergency care, inpatient and outpatient treatment, surgery, diagnostic imaging, laboratory services, rehabilitation, and other clinical programs.

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