[Zacks] Community Health Systems Inc (NYSE:CYH) (TREND ANALYSIS) continues to stride ahead vigorously with its growth strategy of selling smaller hospital assets and focus on large hospitals, which in turn, promise higher profitability. Community Health continues to divest hospitals on a regular basis. In 2014, Community Health had announced quite a few divestitures, including agreements to sell Riverview Regional Medical Center, Dallas Regional Medical Center and Harris Hospital.
Management recently apprised that plans are in place to establish a new publicly traded hospital company, by spinning off 38 of its hospitals and Quorum Health Resources, its hospital management and consulting business. The new entity will be known as Quorum Health Corporation. The transaction is expected to be completed in the first quarter of 2016.
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Community Health Systems Inc (NYSE:CYH) stock is currently trading 11.28% below its 52-week-high, 28.9% above its 52-week-low. The 1-year stock price history is in the range of $44.74 – $65. Community Health Systems Inc (CYH) has a price to earnings ratio of 19.08 versus Healthcare sector average of 40.53. CYH stock price has outperformed the S&P 500 by 5.3%. The Healthcare Services company is currently valued at $6.65 billion and its share price closed the last trading session at $57.67. The stock has a 50-day moving average of $60.09 and a 200-day moving average of $53.95.
Community Health Systems Inc (CYH) current short interest stands at 3.94 million shares. It has decreased by 26% from the same period of last month. Around 4% of the company’s shares, which are float, are short sold. With a 10-days average volume of 1.91 million shares, the number of days required to cover the short positions stand at 2.1 days.
CYH reported last quarter earnings on August 03. The Healthcare Services company announced earnings per share of $1.14 against a consensus Street estimate of $0.91, beating the average estimate by $0.23. This corresponds to an increase of $0.7 compared to the same quarter of the previous fiscal year.
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There are currently twenty-three analysts that cover Community Health Systems Inc stock. Of those twenty-three, seventeen have a Buy rating, six have a Hold rating. On a consensus basis this yields to an Overweight rating. The consensus target price stands at $72.65.
A recent analyst activity consisted of Raymond James upgrading their Market Perform rating to Outperform on August 13. On the date of report, the stock closed at $57.67.
Another research firm was Mizuho Securities who upgraded their Neutral rating to Buy on June 29. On the date of report, the stock closed at $63.05.
Community Health Systems Inc. owns, leases, and operates hospitals in multiple states. The Hospitals services include emergency room services, general surgery, critical care, internal medicine, obstetrics and diagnostic services. Community Health also owns interests in physicians, physician practices, imaging centers, home health agencies and ambulatory surgery centers.