Hound Partners LLC has reduced its stake in HCA Healthcare, Inc. (NYSE:HCA) by 10.0% during the second quarter of 2023, according to a report from HoldingsChannel. The institutional investor now holds 31,832 shares of HCA Healthcare after selling 3,535 shares in the quarter. This position accounts for approximately 1.6% of Hound Partners’ overall portfolio, ranking it as the firm’s 17th largest holding. As of the end of the most recent reporting period, the value of Hound Partners’ holdings in HCA Healthcare was approximately $12.2 million.
A number of other institutional investors have also adjusted their stakes in HCA Healthcare recently. Notably, Norges Bank acquired a new stake in the company valued at $1.15 billion during the same quarter. Price T Rowe Associates Inc. increased its holdings by an impressive 83.4% in the first quarter, bringing its total to 2,399,372 shares, worth approximately $829.1 million after acquiring an additional 1,091,416 shares.
Viking Global Investors LP also expanded its investment, increasing its holdings by 58.5% to own 1,872,133 shares, valued at $717.2 million. Similarly, Nordea Investment Management AB raised its position by 6.8%, now holding 927,781 shares worth around $350.4 million. LSV Asset Management slightly increased its stake by 0.4%, bringing its total to 868,849 shares valued at $332.9 million. Collectively, institutional investors and hedge funds own 62.73% of HCA Healthcare’s stock.
Recent Insider Activity and Financial Performance
In related news, executive vice president Michael R. Mcalevey sold 3,892 shares on November 5, 2023, at an average price of $473.79, totaling approximately $1.84 million. Following this transaction, Mcalevey holds 3,487 shares, valued at about $1.65 million. This sale represents a 52.74% decrease in his position. As of now, company insiders own 1.30% of HCA Healthcare’s stock.
HCA Healthcare’s stock rose by 0.5% following its latest quarterly earnings release on October 24, 2023. The company reported earnings per share (EPS) of $6.96, exceeding analysts’ expectations of $5.64 by $1.32. The firm recorded a net margin of 8.53% and a negative return on equity of 792.25%. Revenue for the quarter was reported at $19.16 billion, surpassing the consensus estimate of $18.55 billion. This represents a 9.6% increase in revenue compared to the same quarter last year, where the EPS was $4.90. HCA Healthcare has set its guidance for fiscal year 2025 at 27.000-28.000 EPS, with analysts projecting an average EPS of 24.98 for the current year.
Dividend Announcement and Analyst Ratings
Additionally, HCA Healthcare recently announced a quarterly dividend of $0.72 per share, set to be paid on December 29, 2023. Shareholders of record on December 15, 2023, will receive this dividend, which translates to an annualized total of $2.88 and a yield of 0.6%. The company’s dividend payout ratio stands at 11.13%.
Several research analysts have weighed in on HCA Healthcare’s stock recently. Weiss Ratings maintained a “buy” rating, while Barclays raised its price target from $445.00 to $494.00, also giving the stock an “overweight” rating. TD Cowen increased its target price from $380.00 to $490.00, maintaining a “buy” rating. Truist Financial has upped its price target from $460.00 to $495.00 as well, while Stephens set its target price at $500.00.
Currently, fourteen investment analysts have rated HCA Healthcare with a “Buy” rating, while ten have assigned a “Hold” rating. According to data from MarketBeat.com, the stock has an average rating of “Moderate Buy” and an average price target of $475.95.
HCA Healthcare, Inc. operates hospitals and related healthcare entities across the United States, providing a variety of medical and surgical services, including inpatient and outpatient care, emergency services, and diagnostic procedures. As the healthcare landscape continues to evolve, investor interest in HCA Healthcare remains strong, reflecting confidence in the company’s growth potential.
