Community Health Systems Sees Unusually Large Options Volume (NYSE:CYH)

Key Points

• Unusual options activity: Community Health Systems saw heavy call buying on Friday, with 2,501 call options traded versus a normal daily volume of 304, a jump of 723%.
• Stock and earnings update: CYH shares rose 3.4% to $2.88, but the company recently missed quarterly EPS and revenue estimates, with revenue down 9.8% year over year.
• Mixed outlook from analysts: Wall Street sentiment remains cautious, with a consensus rating of Reduce and an average price target of $3.39, despite some recent target and rating changes.

Community Health Systems, Inc. (NYSE:CYH - Get Free Report) was the recipient of some unusual options trading on Friday. Stock investors purchased 2,501 call options on the stock. This represents an increase of 723% compared to the typical daily volume of 304 call options.

Community Health Systems Trading Up 3.4%

Shares of CYH stock traded up $0.10 during trading hours on Friday, reaching $2.88. The stock had a trading volume of 857,816 shares, compared to its average volume of 1,715,455. The stock's fifty day simple moving average is $3.12 and its 200 day simple moving average is $3.14. Community Health Systems has a 12 month low of $2.38 and a 12 month high of $4.43. The firm has a market capitalization of $405.14 million, a PE ratio of 1.55 and a beta of 1.81.

Community Health Systems (NYSE:CYH - Get Free Report) last posted its earnings results on Wednesday, July 22nd. The company reported ($0.19) earnings per share for the quarter, missing analysts' consensus estimates of ($0.10) by ($0.09). Community Health Systems had a negative return on equity of 6.58% and a net margin of 2.10%.The firm had revenue of $2.83 billion for the quarter, compared to the consensus estimate of $2.89 billion. During the same period last year, the company posted ($0.05) EPS. The business's revenue was down 9.8% on a year-over-year basis. Community Health Systems has set its FY 2026 guidance at -1.250--1.100 EPS. As a group, equities research analysts anticipate that Community Health Systems will post -0.58 EPS for the current fiscal year.

Hedge Funds Weigh In On Community Health Systems

Several hedge funds and other institutional investors have recently added to or reduced their stakes in CYH. Royal Bank of Canada raised its holdings in shares of Community Health Systems by 601.9% in the 4th quarter. Royal Bank of Canada now owns 9,286 shares of the company's stock valued at $29,000 after acquiring an additional 7,963 shares in the last quarter. Lazard Asset Management LLC purchased a new stake in shares of Community Health Systems during the 4th quarter valued at $34,000. Wealthcare Advisory Partners LLC bought a new stake in shares of Community Health Systems during the 4th quarter worth $35,000. Valeo Financial Advisors LLC bought a new position in Community Health Systems in the fourth quarter valued at $39,000. Finally, Quarry LP purchased a new stake in Community Health Systems during the third quarter valued at about $39,000. 84.99% of the stock is currently owned by hedge funds and other institutional investors.

Wall Street Analysts Forecast Growth

Several equities research analysts have commented on the stock. Wall Street Zen raised shares of Community Health Systems from a "sell" rating to a "hold" rating in a report on Sunday, July 12th. Truist Financial boosted their price target on shares of Community Health Systems from $3.00 to $3.75 and gave the company a "hold" rating in a research report on Tuesday, July 14th. Barclays dropped 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. Weiss Ratings upgraded shares of Community Health Systems from a "sell (d)" rating to a "sell (d+)" rating in a research note on Thursday, July 2nd. Finally, Zacks Research cut shares of Community Health Systems from a "strong-buy" rating to a "hold" rating in a report on Friday, April 24th. One investment analyst has rated the stock with a Buy rating, three have issued a Hold rating and three have assigned a Sell rating to the company. According to data from MarketBeat.com, the company currently has an average rating of "Reduce" and a consensus target price of $3.39.

Community Health Systems Company Profile

Community Health Systems, Inc NYSE: CYH is one of the largest publicly traded hospital operators in the United States. Headquartered in Franklin, Tennessee, the company owns, leases and manages general acute care hospitals and outpatient facilities, primarily in non-urban and mid-market communities. CHS is focused on delivering locally accessible healthcare services through its network of affiliated hospitals, clinics and post-acute providers.

The company's core offerings include inpatient medical and surgical care, emergency services, critical care, diagnostic imaging and laboratory testing.

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