Market Runner: Is Selling Community Health Systems Here a Winning Strategy?

Market Runner: Is Selling Community Health Systems Here a Winning Strategy?

The stock of Community Health Systems (NYSE:CYH) hit a new 52-week low and has $4.66 target or 5.00% below today’s $4.90 share price. The 7 months bearish chart indicates high risk for the $562.14 million company. The 1-year low was reported on Nov, 1 by Barchart.com. If the $4.66 price target is reached, the company will be worth $28.11M less.
The 52-week low event is an important milestone for every stock because it shows very negative momentum and is time when sellers come in. During such technical setups, fundamental investors usually stay away and are careful buying the stock. About 3.99M shares traded hands. Community Health Systems (NYSE:CYH) has declined 65.20% since March 30, 2016 and is downtrending. It has underperformed by 68.22% the S&P500.

Analysts await Community Health Systems (NYSE:CYH) to report earnings on November, 7. They expect $0.45 earnings per share, down 19.64% or $0.11 from last year’s $0.56 per share. CYH’s profit will be $51.63M for 2.72 P/E if the $0.45 EPS becomes a reality. After $0.09 actual earnings per share reported by Community Health Systems for the previous quarter, Wall Street now forecasts 400.00% EPS growth.

Community Health Systems (NYSE:CYH) Ratings Coverage

Out of 19 analysts covering Community Health (NYSE:CYH), 3 rate it a “Buy”, 6 “Sell”, while 10 “Hold”. This means 16% are positive. Community Health has been the topic of 49 analyst reports since August 5, 2015 according to StockzIntelligence Inc. The stock of Community Health Systems (NYSE:CYH) earned “Market Perform” rating by Avondale on Tuesday, February 16. The company was downgraded on Monday, January 4 by Wells Fargo. The company was downgraded on Tuesday, October 27 by Leerink Swann. On Tuesday, May 3 the stock rating was downgraded by Bank of America to “Underperform”. The firm has “Equal-Weight” rating given on Thursday, August 4 by Barclays Capital. The firm has “Market Perform” rating given on Wednesday, November 4 by Leerink Swann. The rating was maintained by RBC Capital Markets with “Outperform” on Wednesday, August 5. The firm has “Neutral” rating given on Friday, October 2 by Citigroup. As per Monday, April 25, the company rating was downgraded by Raymond James. The rating was maintained by Barclays Capital with “Equal-Weight” on Wednesday, January 6.

According to Zacks Investment Research, “Community Health Systems, Inc. is a leading provider of non-urban acute healthcare services. Their facilities, together with their medical staffs, provide a wide range of inpatient and outpatient acute care services and a variety of specialty services.”

Insitutional Activity: The institutional sentiment increased to 1.4 in Q2 2016. Its up 0.69, from 0.71 in 2016Q1. The ratio is positive, as 35 funds sold all Community Health Systems shares owned while 66 reduced positions. 36 funds bought stakes while 105 increased positions. They now own 118.59 million shares or 17.01% more from 101.36 million shares in 2016Q1.
Fmr Ltd Liability accumulated 0% or 2.89 million shares. Teachers Retirement Systems Of The State Of Kentucky accumulated 22,773 shares or 0% of the stock. Victory Inc, a Ohio-based fund reported 4 shares. Sei Invs has invested 0% of its portfolio in Community Health Systems (NYSE:CYH). Nomura Asset Management Communications last reported 0% of its portfolio in the stock. Janney Montgomery Scott Limited Liability Corp accumulated 21,519 shares or 0% of the stock. Gsa Prtnrs Ltd Liability Partnership holds 0.06% or 89,985 shares in its portfolio. First Advsrs Ltd Partnership has 1.78M shares for 0.07% of their US portfolio. The Florida-based Dreman Value Mgmt L L C has invested 0% in Community Health Systems (NYSE:CYH). Blackrock Inc reported 76,911 shares or 0% of all its holdings. Metropolitan Life Insurance Com Ny accumulated 0.02% or 183,221 shares. Dupont Capital Corporation holds 0.01% or 40,554 shares in its portfolio. Jfs Wealth Advsr Ltd Com has 0.04% invested in the company for 12,700 shares. New York State Common Retirement Fund reported 284,900 shares or 0.01% of all its holdings. Greenlight Inc holds 2.42M shares or 0.53% of its portfolio.

Insider Transactions: Since June 13, 2016, the stock had 1 insider purchase, and 1 insider sale for $9.47 million net activity. WATSON H MITCHELL JR also sold $75,163 worth of Community Health Systems (NYSE:CYH) shares. Shares for $9.55M were bought by Chen Tian Qiao.

More notable recent Community Health Systems (NYSE:CYH) news were published by: Wsj.com which released: “Community Health Systems Retrenches” on October 10, 2016, also Fool.com with their article: “Why Community Health Systems Dropped 43.1% Today” published on October 27, 2016, Wsj.com published: “Community Health Systems Faces Heat From Investor” on October 13, 2016. More interesting news about Community Health Systems (NYSE:CYH) were released by: Wsj.com and their article: “Community Health Systems Adopts Poison Pill” published on October 03, 2016 as well as Businesswire.com‘s news article titled: “Community Health Systems, Inc. Previews Third Quarter 2016 Operating Results” with publication date: October 26, 2016.

CYH Company Profile

Community Health Systems, Inc., incorporated on June 6, 1996, is an operator of general acute care hospitals in communities. The Firm provides healthcare services through the hospitals that it owns and operates and affiliated businesses in non-urban and selected urban markets throughout the United States. The Firm operates through two divisions: hospital activities and home care agencies operations. The hospital activities include its general acute care hospitals and related healthcare entities that provide inpatient and outpatient healthcare services. The home care agencies activities provide in-home outpatient care. The Company’s services include general acute care, emergency room, general and specialty surgery, critical care, internal medicine, obstetrics, diagnostic, psychiatric and rehabilitation services. Through its subsidiaries, the Company owns, leases or operates 160 affiliated hospitals in 22 states with an aggregate of approximately 27,000 licensed beds.

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