HCA Healthcare (NYSE:HCA) Shares Down 3.2% - Should You Sell?

Key Points

• HCA Healthcare's stock price fell by 3.2% on Friday, trading between $437.03 and $425.94, with a significant drop in trading volume of 72% compared to the average.
• The company reported a quarterly earnings per share of $6.96, exceeding the analysts' expectations, although it also showed a negative return on equity of 7,363.11% along with an 8.21% net margin.
• Major institutional investors have increased their stakes in HCA Healthcare, with significant acquisitions from Norges Bank and Price T Rowe Associates, reflecting a growing interest in the company.

HCA Healthcare, Inc. (NYSE:HCA - Get Free Report)'s stock price was down 3.2% during trading on Friday . The company traded as low as $437.03 and last traded at $425.94. Approximately 424,388 shares changed hands during mid-day trading, a decline of 72% from the average daily volume of 1,490,992 shares. The stock had previously closed at $440.16.

Analyst Upgrades and Downgrades

A number of equities research analysts have issued reports on the company. Cantor Fitzgerald restated an "overweight" rating and set a $444.00 price objective on shares of HCA Healthcare in a research report on Tuesday, October 7th. Wells Fargo & Company increased their price target on HCA Healthcare from $375.00 to $412.00 and gave the stock an "equal weight" rating in a report on Tuesday, October 7th. Royal Bank Of Canada reduced their price target on HCA Healthcare from $404.00 to $401.00 and set an "outperform" rating on the stock in a report on Monday, July 28th. Morgan Stanley dropped their price objective on HCA Healthcare from $410.00 to $400.00 and set an "equal weight" rating on the stock in a research note on Monday, July 28th. Finally, Mizuho increased their target price on HCA Healthcare from $425.00 to $475.00 and gave the company an "outperform" rating in a research report on Friday, October 17th. One analyst has rated the stock with a Strong Buy rating, eleven have assigned a Buy rating and nine have assigned a Hold rating to the stock. According to data from MarketBeat, the stock currently has an average rating of "Moderate Buy" and a consensus price target of $437.19.

HCA Healthcare Stock Performance

The company has a market cap of $106.41 billion, a PE ratio of 19.19, a price-to-earnings-growth ratio of 1.39 and a beta of 1.40. The stock has a 50 day moving average of $413.82 and a 200-day moving average of $380.88.

HCA Healthcare (NYSE:HCA - Get Free Report) last released its quarterly earnings data on Friday, October 24th. The company reported $6.96 earnings per share for the quarter, beating analysts' consensus estimates of $5.64 by $1.32. HCA Healthcare had a negative return on equity of 7,363.11% and a net margin of 8.21%.The business had revenue of $19.16 billion during the quarter, compared to analyst estimates of $18.55 billion. During the same quarter last year, the business posted $4.90 EPS. The company's revenue was up 9.6% on a year-over-year basis. HCA Healthcare has set its FY 2025 guidance at 27.000-28.000 EPS. Equities research analysts forecast that HCA Healthcare, Inc. will post 24.98 EPS for the current year.

Insider Activity at HCA Healthcare

In other news, EVP Michael S. Cuffe sold 3,836 shares of the firm's stock in a transaction dated Monday, September 8th. The stock was sold at an average price of $418.84, for a total transaction of $1,606,670.24. Following the sale, the executive vice president directly owned 31,503 shares in the company, valued at $13,194,716.52. This trade represents a 10.85% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. 1.30% of the stock is owned by company insiders.

Institutional Investors Weigh In On HCA Healthcare

Several institutional investors have recently bought and sold shares of the company. Norges Bank acquired a new stake in HCA Healthcare in the 2nd quarter worth about $1,152,408,000. Price T Rowe Associates Inc. MD boosted its holdings in HCA Healthcare by 83.4% in the 1st quarter. Price T Rowe Associates Inc. MD now owns 2,399,372 shares of the company's stock worth $829,104,000 after buying an additional 1,091,416 shares during the last quarter. Viking Global Investors LP boosted its holdings in HCA Healthcare by 58.5% in the 2nd quarter. Viking Global Investors LP now owns 1,872,133 shares of the company's stock worth $717,214,000 after buying an additional 690,773 shares during the last quarter. Goldman Sachs Group Inc. raised its position in shares of HCA Healthcare by 49.1% during the 1st quarter. Goldman Sachs Group Inc. now owns 1,781,459 shares of the company's stock valued at $615,583,000 after buying an additional 587,036 shares during the period. Finally, Nuveen LLC purchased a new stake in shares of HCA Healthcare during the 1st quarter valued at approximately $569,217,000. 62.73% of the stock is currently owned by institutional investors and hedge funds.

About HCA Healthcare

HCA Healthcare, Inc, through its subsidiaries, owns and operates hospitals and related healthcare entities in the United States. It operates general and acute care hospitals that offers medical and surgical services, including inpatient care, intensive care, cardiac care, diagnostic, and emergency services; and outpatient services, such as outpatient surgery, laboratory, radiology, respiratory therapy, cardiology, and physical therapy.

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