Community Health Systems Faces Analyst Scrutiny with Average “Reduce” Rating
Shares of Community Health Systems, Inc. (NYSE:CYH) have received an average rating of “Reduce” from eight brokerages currently monitoring the company, according to MarketBeat.com. This rating reflects a cautious outlook, with two analysts advising to sell, five recommending a hold, and only one suggesting a buy.
Analysts have varied in their price targets for Community Health Systems over the past year. The consensus target price now stands at $3.74. Recently, Truist Financial adjusted its target price from $3.50 to $4.25, while maintaining a hold rating in a note issued on July 16, 2023. In contrast, Jefferies Financial Group reaffirmed a hold rating but lowered its price target from $4.25 to $3.00 on July 20, 2023.
Additionally, Barclays revised its target down from $4.00 to $3.50, categorizing the stock as equal weight in a report issued the same day. Coverage by Guggenheim began on April 9, 2023, where they assigned a neutral rating. Meanwhile, Royal Bank of Canada reduced its target from $6.00 to $5.00 while maintaining an outperform rating.
Stock Performance and Financial Results
On July 21, 2023, Community Health Systems’ stock opened at $2.77, reflecting a decline of 4.7%. The company has a market capitalization of $387.96 million, with a price-to-earnings ratio of -1.86 and a beta of 2.06. The stock has fluctuated within a 52-week range, hitting a low of $2.24 and a high of $6.29.
In its latest earnings report, released on July 23, 2023, Community Health Systems reported earnings per share (EPS) of ($0.05), falling short of analysts’ expectations of $0.05 by ($0.10). The company generated revenues of $3.13 billion, surpassing projections of $3.02 billion, although this figure marked a 0.2% decrease compared to the same quarter last year. For the previous year, the company reported an EPS of ($0.17). Analysts currently project that Community Health Systems will post an EPS of ($0.29) for the current fiscal year.
About Community Health Systems
Community Health Systems, Inc. owns, leases, and operates general acute care hospitals across the United States. The organization provides a wide range of services, including general acute care, emergency services, specialty surgeries, critical care, internal medicine, obstetrics, diagnostic, psychiatric, rehabilitation services, as well as skilled nursing and home care services.
As the company navigates this challenging financial landscape, the ongoing scrutiny from analysts highlights the complexities within the healthcare sector. Investors will be watching closely for any developments that could impact Community Health Systems’ performance in the coming months.
