HCA Healthcare (NYSE:HCA) Trading Up 5% After Strong Earnings

HCA Healthcare, Inc. (NYSE:HCA) shares traded up 5% during trading on Monday following a stronger than expected earnings report. The stock traded as high as $327.81 and last traded at $328.75. 883,044 shares were traded during trading, a decline of 47% from the average session volume of 1,654,547 shares. The stock had previously closed at $313.07.

The company reported $6.22 EPS for the quarter, beating the consensus estimate of $6.03 by $0.19. HCA Healthcare had a net margin of 8.52% and a return on equity of 520.98%. During the same quarter in the previous year, the company posted $5.90 EPS.

HCA Healthcare Increases Dividend

The firm also recently declared a quarterly dividend, which will be paid on Monday, March 31st. Stockholders of record on Monday, March 17th will be paid a dividend of $0.72 per share. This is a positive change from HCA Healthcare’s previous quarterly dividend of $0.66. The ex-dividend date of this dividend is Monday, March 17th. This represents a $2.88 annualized dividend and a dividend yield of 0.88%. HCA Healthcare’s dividend payout ratio is 13.11%.

Analyst Upgrades and Downgrades

HCA has been the subject of a number of research analyst reports. KeyCorp cut their target price on shares of HCA Healthcare from $420.00 to $370.00 and set an “overweight” rating for the company in a research report on Tuesday, January 7th. JPMorgan Chase & Co. reaffirmed a “neutral” rating and set a $380.00 target price on shares of HCA Healthcare in a research report on Tuesday, December 17th. Wells Fargo & Company cut shares of HCA Healthcare from an “equal weight” rating to an “underweight” rating and reduced their target price for the company from $400.00 to $320.00 in a research note on Monday, November 25th. Morgan Stanley decreased their price objective on HCA Healthcare from $406.00 to $355.00 and set an “equal weight” rating on the stock in a report on Tuesday, December 17th. Finally, Oppenheimer lifted their price target on shares of HCA Healthcare from $390.00 to $400.00 and gave the stock an “outperform” rating in a research note on Monday, October 28th. One equities research analyst has rated the stock with a sell rating, three have given a hold rating, thirteen have given a buy rating and two have issued a strong buy rating to the company. According to data from MarketBeat, the company presently has a consensus rating of “Moderate Buy” and an average price target of $382.19.

Insider Activity at HCA Healthcare

In other news, insider Erol R. Akdamar sold 2,900 shares of the firm’s stock in a transaction on Thursday, November 14th. The stock was sold at an average price of $353.00, for a total value of $1,023,700.00. Following the transaction, the insider now directly owns 6,843 shares in the company, valued at $2,415,579. This trade represents a 29.76 % decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. Also, SVP Phillip G. Billington sold 3,897 shares of the stock in a transaction dated Thursday, November 14th. The shares were sold at an average price of $350.00, for a total value of $1,363,950.00. Following the completion of the transaction, the senior vice president now directly owns 52,702 shares in the company, valued at $18,445,700. The trade was a 6.89 % decrease in their position. The disclosure for this sale can be found here. 1.70% of the stock is currently owned by company insiders.

Institutional Trading of HCA Healthcare

Several hedge funds have recently bought and sold shares of the stock. Legacy Investment Solutions LLC acquired a new stake in HCA Healthcare in the 3rd quarter valued at $39,000. Capital Performance Advisors LLP acquired a new stake in shares of HCA Healthcare in the third quarter valued at about $41,000. Canoe Financial LP bought a new position in HCA Healthcare in the third quarter valued at approximately $41,000. Northwest Investment Counselors LLC bought a new stake in shares of HCA Healthcare during the 3rd quarter worth approximately $44,000. Finally, Friedenthal Financial acquired a new position in HCA Healthcare during the third quarter worth $50,000. 62.73% of the stock is currently owned by institutional investors and hedge funds.

HCA Healthcare Stock Down 1.1 %

The company has a market capitalization of $83.18 billion, a price-to-earnings ratio of 14.75, a price-to-earnings-growth ratio of 1.09 and a beta of 1.64. The firm’s 50 day moving average price is $313.42 and its two-hundred day moving average price is $353.24. The company has a current ratio of 1.12, a quick ratio of 1.00 and a debt-to-equity ratio of 48.71.

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.