Community Health Systems, Inc. (NYSE:CYH) Given Average Recommendation of "Reduce" by Brokerages

Key Points

• Analysts are broadly cautious on Community Health Systems: Seven firms give the stock an average “Reduce” rating, with three sells, three holds and one buy. The average 12-month price target is $2.95.
• The company’s latest quarterly results missed expectations, with a loss of $0.19 per share versus the projected $0.10 loss and revenue of $2.83 billion versus the $2.89 billion consensus. Revenue declined 9.8% year over year.
• CYH shares opened at $2.98, near their 50-day average of $2.99, while institutional investors own 84.99% of the stock; a company director also recently sold 40,000 shares at $2.96 each.

Shares of Community Health Systems, Inc. (NYSE:CYH - Get Free Report) have received an average recommendation of "Reduce" from the seven research firms that are covering the firm, Marketbeat Ratings reports. Three research analysts have rated the stock with a sell rating, three have issued a hold rating and one has assigned a buy rating to the company. The average 12 month price objective among brokerages that have updated their coverage on the stock in the last year is $2.95.

Several brokerages have issued reports on CYH. Truist Financial dropped their target price on shares of Community Health Systems from $3.75 to $3.25 and set a "hold" rating on the stock in a report on Monday, July 27th. Royal Bank Of Canada lowered their price target on shares of 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. Barclays dropped their target price on Community Health Systems from $3.00 to $2.50 and set an "underweight" rating on the stock in a research report on Thursday, July 23rd. Wall Street Zen cut Community Health Systems from a "hold" rating to a "sell" rating in a research note on Saturday, July 25th. Finally, Weiss Ratings upgraded Community Health Systems from a "sell (d)" rating to a "sell (d+)" rating in a research note on Thursday, July 2nd.

Insider Activity

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

Institutional Investors Weigh In On Community Health Systems

Several hedge funds have recently added to or reduced their stakes in CYH. Sequoia Financial Advisors LLC purchased a new position in Community Health Systems during the second quarter valued at approximately $64,000. Readystate Asset Management LP boosted its position in Community Health Systems by 37.3% in the 2nd quarter. Readystate Asset Management LP now owns 496,326 shares of the company's stock worth $1,658,000 after purchasing an additional 134,829 shares in the last quarter. Apollo Management Holdings L.P. grew its stake 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 worth $39,611,000 after purchasing an additional 370,210 shares during the period. Jefferies Financial Group Inc. purchased a new position in shares of Community Health Systems during the 2nd quarter valued at approximately $2,481,000. Finally, Public Employees Retirement System of Ohio acquired a new position in shares of Community Health Systems in the 2nd quarter valued at $129,000. 84.99% of the stock is owned by hedge funds and other institutional investors.

Community Health Systems Stock Up 0.5%

CYH opened at $2.98 on Thursday. The stock's fifty day moving average is $2.99 and its two-hundred day moving average is $3.03. The company has a market capitalization of $420.91 million, a P/E ratio of 1.61 and a beta of 1.86. Community Health Systems has a 52 week low of $2.40 and a 52 week high of $4.43.

Community Health Systems (NYSE:CYH - Get Free Report) last issued its earnings results on Wednesday, July 22nd. The company reported ($0.19) earnings per share for the quarter, missing the consensus estimate of ($0.10) by ($0.09). The firm had revenue of $2.83 billion during the quarter, compared to analysts' expectations of $2.89 billion. Community Health Systems had a negative return on equity of 6.66% and a net margin of 2.10%.Community Health Systems's quarterly revenue was down 9.8% compared to the same quarter last year. During the same quarter in the prior year, the company posted ($0.05) earnings per share. Community Health Systems has set its FY 2026 guidance at -1.250--1.100 EPS. Equities analysts anticipate that Community Health Systems will post -0.86 earnings per share for the current year.

Community Health Systems Company Profile

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

Its services generally include emergency care, inpatient and outpatient surgery, diagnostic imaging, laboratory services, cardiology, orthopedics, women's health, rehabilitation, behavioral health, and other medical services.

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