HCA Healthcare (NYSE:HCA) Trading 5.3% Higher - Should You Buy?

Key Points

• HCA Healthcare shares rose 5.3% to about $423.29, while trading volume was 22% below the average daily level.
• Analysts remain broadly positive, with 14 Buy, eight Hold, and one Sell rating; the consensus is “Moderate Buy” with an average price target of $462.64, despite several recent target cuts.
• HCA beat quarterly earnings and revenue estimates, reporting $7.59 in EPS and $20.23 billion in revenue, up 8.7% year over year. The company also declared a quarterly dividend of $0.78 per share, yielding approximately 0.7%.

Shares of HCA Healthcare, Inc. (NYSE:HCA - Get Free Report) rose 5.3% during mid-day trading on Wednesday . The company traded as high as $420.92 and last traded at $423.2920. Approximately 1,040,048 shares changed hands during mid-day trading, a decline of 22% from the average daily volume of 1,334,584 shares. The stock had previously closed at $402.02.

Analysts Set New Price Targets

A number of equities analysts have issued reports on the company. TD Cowen decreased their price target on HCA Healthcare from $500.00 to $431.00 and set a "buy" rating for the company in a research note on Monday, June 22nd. Barclays decreased their price objective on shares of HCA Healthcare from $402.00 to $387.00 and set an "equal weight" rating for the company in a research note on Monday, July 27th. Truist Financial dropped their target price on HCA Healthcare from $535.00 to $495.00 and set a "buy" rating on the stock in a report on Monday, July 27th. Sanford C. Bernstein reiterated a "market perform" rating on shares of HCA Healthcare in a report on Wednesday, July 15th. Finally, KeyCorp decreased their target price on shares of HCA Healthcare from $475.00 to $435.00 and set an "overweight" rating for the company in a research report on Monday, July 27th. Fourteen analysts have rated the stock with a Buy rating, eight have assigned a Hold rating and one has assigned a Sell rating to the company's stock. Based on data from MarketBeat.com, the stock has an average rating of "Moderate Buy" and an average price target of $462.64.

HCA Healthcare Stock Performance

The firm has a market cap of $92.28 billion, a price-to-earnings ratio of 14.26, a P/E/G ratio of 1.33 and a beta of 1.10. The company's 50-day moving average is $403.82 and its 200-day moving average is $434.97.

HCA Healthcare (NYSE:HCA - Get Free Report) last announced its quarterly earnings results on Friday, July 24th. The company reported $7.59 earnings per share for the quarter, beating analysts' consensus estimates of $7.56 by $0.03. The business had revenue of $20.23 billion for the quarter, compared to the consensus estimate of $19.76 billion. HCA Healthcare had a net margin of 8.77% and a negative return on equity of 244.79%. HCA Healthcare's revenue for the quarter was up 8.7% on a year-over-year basis. During the same period last year, the company posted $6.84 EPS. On average, analysts predict that HCA Healthcare, Inc. will post 29.42 EPS for the current year.

HCA Healthcare Announces Dividend

The firm also recently disclosed a quarterly dividend, which will be paid on Wednesday, September 30th. Stockholders of record on Wednesday, September 16th will be given a $0.78 dividend. This represents a $3.12 dividend on an annualized basis and a dividend yield of 0.7%. The ex-dividend date of this dividend is Wednesday, September 16th. HCA Healthcare's dividend payout ratio (DPR) is presently 10.45%.

Institutional Trading of HCA Healthcare

Several hedge funds have recently added to or reduced their stakes in the company. Sumitomo Life Insurance Co. increased its stake in HCA Healthcare by 1.0% during the 4th quarter. Sumitomo Life Insurance Co. now owns 2,026 shares of the company's stock worth $946,000 after acquiring an additional 20 shares during the period. MJP Associates Inc. ADV raised its stake in HCA Healthcare by 2.9% in the fourth quarter. MJP Associates Inc. ADV now owns 749 shares of the company's stock valued at $350,000 after purchasing an additional 21 shares in the last quarter. Cary Street Partners Investment Advisory LLC grew its stake in HCA Healthcare by 7.5% during the fourth quarter. Cary Street Partners Investment Advisory LLC now owns 300 shares of the company's stock worth $140,000 after buying an additional 21 shares in the last quarter. Anchyra Partners LLC lifted its holdings in shares of HCA Healthcare by 3.7% during the 1st quarter. Anchyra Partners LLC now owns 587 shares of the company's stock worth $278,000 after acquiring an additional 21 shares during the period. Finally, Moors & Cabot Inc. increased its stake in HCA Healthcare by 2.5% in the fourth quarter. Moors & Cabot Inc. now owns 931 shares of the company's stock valued at $435,000 after acquiring an additional 23 shares during the last quarter. 62.73% of the stock is owned by institutional investors and hedge funds.

About HCA Healthcare

HCA Healthcare, Inc NYSE: HCA is a healthcare services company that operates hospitals and other healthcare facilities. Its network provides a broad range of medical services, including emergency care, inpatient and outpatient treatment, surgery, diagnostic services, and maternity care.

The company also operates ambulatory surgery centers, urgent care facilities, physician practices, and other outpatient locations. HCA Healthcare serves patients through facilities located across the United States, as well as through HCA Healthcare UK, its healthcare operations in the United Kingdom.

HCA Healthcare was founded in 1968 by Dr.

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