A look into Community Health Systems Inc. (CYH)’s deeper side

Community Health Systems Inc. (NYSE: CYH) stock jumped 0.85% on Monday to $4.75 against a previous-day closing price of $4.71. With 2.35 million shares changed hands, the volume of the stock remained lighter than its average volume of 2.65 million shares. During the session, the Medical Care Facilities company that operates in wider Healthcare sector, reached to the highest price of $4.9000 whereas the lowest price it dropped to was $4.7100. The 52-week range on CYH shows that it touched its highest point at $14.29 and its lowest point at $1.88 during that stretch. It currently has a 1-year price target of $5.65. Beta for the stock currently stands at 1.74.

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Price Performance and Earnings:

Stock performance is one of the indicators that investors use to determine whether they will profit from a stock. The price performance of CYH was up-trending over the past week, with a rise of 3.26%, but this was up by 24.02% over a month. Three-month performance surged to 99.58% while six-month performance fell -3.06%. The stock lost -65.02% in the past year, while it has gained 9.95% so far this year. A look at the trailing 12-month EPS for CYH yields -1.52 with Next year EPS estimates of -0.27. For the next quarter, that number is 0.41. This implies an EPS growth rate of -59.80% for this year and 90.00% for next year. EPS is expected to decline by -7.95% annually over the next five years; however, over the past five years, the company experienced an annual growth rate of 16.20%.

Float and Shares Shorts:

At present, 129.14 million CYH shares are outstanding with a float of 126.20 million shares on hand for trading. On Oct 13, 2022, short shares totaled 11.38 million, which was 8.45% higher than short shares on Sep 14, 2022. In addition to Mr. Wayne T. Smith as the firm’s Exec. Chairman, Mr. Tim L. Hingtgen serves as its CEO & Director.


Institutional Ownership:

Through their ownership of 89.62% of CYH’s outstanding shares, institutional investors have majority control over the company. Other institutions hold 51.76% of CYH, in contrast to 43.99% held by mutual funds. Shares owned by individuals account for 38.15%. As the largest shareholder in CYH with 13.77% of the stake, BlackRock Fund Advisors holds 18,546,117 shares worth 18,546,117. A second-largest stockholder of CYH, Eversept Partners LP, holds 8,841,604 shares, controlling over 6.56% of the firm’s shares. The Vanguard Group, Inc. is the third largest shareholder in CYH, holding 8,396,225 shares or 6.23% stake. With a 6.88% stake in CYH, the iShares Core S&P Small Cap ETF is the largest stakeholder. A total of 9,267,966 shares are owned by the mutual fund manager. The Vanguard Total Stock Market Index, which owns about 2.96% of CYH stock, is the second-largest Mutual Fund holder. It holds 3,983,855 shares valued at 17.21 million. Invesco S&P Small Cap 600 Revenue holds 2.34% of the stake in CYH, owning 3,157,905 shares worth 13.64 million.

Analysts Ratings:

Reading analyst opinions is an effective way to decide where to invest, and there are several opinions available for CYH since 12 analysts follow the stock currently. There are 4 analysts who recommend BUY ratings, while 0 suggest SELL ratings. Of the remaining analysts, 8 believe that the stock is worth HOLDING, 0 give it an OVERWEIGHT rating, and 0 thinks that it’s UNDERWEIGHT. In the same way, a target price assigned to a stock can also reveal much about its potential. With CYH analysts setting a high price target of $13.75 and a low target of $3.00, the average target price over the next 12 months is $5.65. Based on these targets, CYH could surge 189.47% to reach the target high and fall by -36.84% to reach the target low. Reaching the average price target will result in a growth of 18.95% from current levels.


EPS: Estimates vs Actual

It is also common to use earnings estimates to evaluate a firm’s growth potential and to determine trading strategy. CYH will report FY 2022 earnings on 02/15/2024. Analysts have provided yearly estimates in a range of -$1.43 being high and -$4.11 being low. For CYH, this leads to a yearly average estimate of -$2.65. The earnings surprise of a firm occurs when the actual results change from the consensus earnings estimate. Community Health Systems Inc. surprised analysts by -$0.50 when it reported -$0.52 EPS against a consensus estimate of -$0.02. The surprise factor in the prior quarter was -$2.57. Based on analyst estimates, the high estimate for the next quarter is $1.44 and the low estimate is -$1.20. The average estimate for the next quarter is thus $0.36.

Summary of Insider Activity:

Insiders traded CYH stock several times over the past three months with 0 Buys and 1 Sells. In these transactions, 0 shares were bought while 19,340 shares were sold. The number of buy transactions has increased to 37 while that of sell transactions has risen to 13 over the past year. The total number of shares bought during that period was 2,415,018 while 479,988 shares were sold.

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