HCA Healthcare (NYSE:HCA) Stock Price Down 5.1% - Here's Why

Key Points

• HCA Healthcare shares fell 5.1% to about $441.35 despite the company reporting third-quarter adjusted EPS of $7.22 and revenue of $19.85 billion, both above analyst estimates.
• Investor concerns included a decline in net income to $1.58 billion from $1.64 billion a year earlier and management’s decision to maintain, rather than raise, full-year guidance.
• Analysts remain generally positive, with a “Moderate Buy” consensus rating and an average price target of $467.50, although several firms recently lowered their targets.

HCA Healthcare, Inc. (NYSE:HCA - Get Free Report) shares traded down 5.1% on Tuesday. The stock traded as low as $445.01 and last traded at $441.3480. Approximately 760,273 shares changed hands during trading, a decline of 43% from the average session volume of 1,330,525 shares. The stock had previously closed at $465.26.

HCA Healthcare News Summary

Here are the key news stories impacting HCA Healthcare this week:

• Positive Sentiment: HCA reported third-quarter adjusted earnings of $7.22 per share, exceeding the $6.65–$6.74 analyst estimates and rising from $6.96 a year earlier. Revenue also topped forecasts at $19.85 billion, up 3.6% year over year, supported by demand for medical services. HCA Healthcare Q3 Earnings and Revenues Top Estimates
• Positive Sentiment: The earnings beat indicates operating performance remained resilient despite ongoing cost and labor pressures, providing support for HCA’s profitability outlook. HCA Healthcare Beats Quarterly Profit Estimates
• Neutral Sentiment: Management maintained its existing full-year guidance rather than raising it. This preserves expectations for the year but may have disappointed investors looking for a stronger outlook after the quarterly beat. HCA Healthcare Posts Solid Q3 Results and Maintains Guidance
• Negative Sentiment: Net income declined to $1.58 billion from $1.64 billion in the prior-year quarter, even as revenue increased. The profit decline, combined with the unchanged guidance, likely explains why the stock is trading lower despite beating consensus estimates. HCA Healthcare Profit Slips but Revenue Rises

Wall Street Analyst Weigh In

A number of equities analysts have commented on the company. UBS Group decreased their target price on HCA Healthcare from $635.00 to $579.00 and set a "buy" rating for the company in a research note on Monday, July 27th. Sanford C. Bernstein reissued a "market perform" rating on shares of HCA Healthcare in a report on Wednesday, July 15th. KeyCorp reduced their price objective on HCA Healthcare from $475.00 to $435.00 and set an "overweight" rating for the company in a research report on Monday, July 27th. Cantor Fitzgerald restated an "overweight" rating on shares of HCA Healthcare in a research note on Friday, October 2nd. Finally, Royal Bank Of Canada increased their target price on HCA Healthcare from $435.00 to $496.00 and gave the stock an "outperform" rating in a research report on Wednesday, October 7th. Sixteen analysts have rated the stock with a Buy rating, six have assigned a Hold rating and one has given a Sell rating to the company's stock. Based on data from MarketBeat, HCA Healthcare presently has an average rating of "Moderate Buy" and an average price target of $467.50.

HCA Healthcare Trading Down 5.1%

The firm has a 50-day moving average of $431.57 and a 200 day moving average of $445.15. The stock has a market capitalization of $95.58 billion, a price-to-earnings ratio of 14.81, a PEG ratio of 1.58 and a beta of 1.10.

HCA Healthcare (NYSE:HCA - Get Free Report) last announced its quarterly earnings results on Tuesday, October 27th. The company reported $7.22 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $6.65 by $0.57. The company had revenue of $19.85 billion during the quarter, compared to analyst estimates of $19.33 billion. HCA Healthcare had a negative return on equity of 244.79% and a net margin of 8.77%. The firm's quarterly revenue was up 3.6% on a year-over-year basis. During the same quarter in the previous year, the firm posted $6.96 EPS. Equities research analysts predict that HCA Healthcare, Inc. will post 29.51 EPS for the current fiscal year.

Institutional Inflows and Outflows

Institutional investors and hedge funds have recently made changes to their positions in the stock. SBI Securities Co. Ltd. raised its holdings in shares of HCA Healthcare by 24.7% during the third quarter. SBI Securities Co. Ltd. now owns 111 shares of the company's stock valued at $47,000 after purchasing an additional 22 shares during the period. Beacon Capital Management LLC grew its stake in shares of HCA Healthcare by 0.7% in the 3rd quarter. Beacon Capital Management LLC now owns 3,631 shares of the company's stock valued at $1,550,000 after buying an additional 25 shares during the period. Diversify Advisory Services LLC increased its position in HCA Healthcare by 3.3% in the 3rd quarter. Diversify Advisory Services LLC now owns 806 shares of the company's stock valued at $378,000 after buying an additional 26 shares in the last quarter. AdvisorNet Financial Inc raised its stake in HCA Healthcare by 3.5% during the 3rd quarter. AdvisorNet Financial Inc now owns 994 shares of the company's stock worth $468,000 after buying an additional 34 shares during the period. Finally, Integrated Advisors Network LLC boosted its holdings in HCA Healthcare by 0.6% in the third quarter. Integrated Advisors Network LLC now owns 5,469 shares of the company's stock worth $2,334,000 after acquiring an additional 35 shares in the last quarter. 62.73% of the stock is currently owned by institutional investors.

About HCA Healthcare

HCA Healthcare, Inc is a healthcare services company that operates hospitals, ambulatory surgery centers, emergency care facilities, physician practices and other healthcare sites. Its facilities provide a broad range of services, including acute and emergency care, surgery, cardiology, oncology, women's and children's services, behavioral health and outpatient care.

The company serves patients primarily across the United States through a network of healthcare facilities in numerous states.

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