Huge Earnings Miss Sends Community Health Systems (CYH) Shares Down 28%


Investors of Community Health Systems (NYSE:CYH) aren’t even slightly happy this morning as shares of the stock trade down significantly following the company reporting their Fourth Quarter numbers. These numbers missed wall street’s estimates by quite a significant margin. While Wall Street was expecting to see earnings per share of $0.95 on revenue of $4.99 billion, Community Health Systems (NYSE:CYH) reported and EPS of ($0.28) on just $4.8 billion in revenue.

While this miss is negatively affecting the stock price today, the company did report a forward looking guidance that was not quite so bleak. While the Street was expecting FY 2016 EPS of $3.68 per share, Community Health Systems (NYSE:CYH) said they expect to see numbers come in between $3.40 and $3.80 per share, pretty much on par with the consensus. The stock is down 28.85% or $5.39 following the news, hitting $13.29 per share. About 9.08M shares traded hands or 137.08% up from the average. CYH has declined 69.75% since July 10, 2015 and is downtrending. It has underperformed the S&P500 by 59.55%.

From a total of 14 analysts covering Community Health (NYSE:CYH) stock, 1 rate it a “Buy”, 1 a “Sell”, and 12 a “Hold”. This means that 7% of the ratings are positive. The highest target price is $83 while the lowest target price is $18. The mean of all analyst targets is $36.27 which is 172.91% above today’s ($13.29) stock price. Community Health was the topic of 33 analyst reports since August 5, 2015 according to the firm StockzIntelligence Inc. Jefferies downgraded shares on February 16 to a “Hold” rating. Barclays Capital maintained shares with a”Equal-Weight” rating and a $29 target share price in their report from a January 6. Avondale downgraded CYH stock in a recent report from February 16 to a “Market Perform” rating. Leerink Swann downgraded the rating on November 4. Leerink Swann has a “Market Perform” rating and a $33 price target on shares. Finally, Wedbush downgraded the stock to a “Neutral” rating in a report they issued on a January 8.

The institutional sentiment increased to 1.27 in Q2 2015. It’s up 0.13, from 1.14 in 2015Q2. The ratio increased, as 53 funds sold all their Community Health Systems shares they owned while 101 reduced their positions. 64 funds bought stakes while 132 increased their total positions. Institutions now own 116.11 million shares which is 8.85% more than the previous share count of 106.67 million in 2015Q2.

Aristotle Fund L.P. holds 16.05% of its total portfolio in Community Health Systems, equating to 295,000 shares. Keypoint Capital Management Llc owns 70,000 shares representing 4.51% of their total US portfolio. Moreover, Rudman Errol M has 4.26% of their total portfolio invested in the company, equating to 255,000 shares. The New York-based Perry Corp has a total of 4.16% of their portfolio invested in the stock. Highline Capital Management Llc, a New York-based fund reported 2.10 million shares owned.

Since February 25, 2015, the stock had 0 insider purchases, and 2 insider sales for a total of $8.01 million in net activity. Glenview Capital Management – Llc sold 279,074 shares worth $7.91M. Watson H Mitchell Jr sold 2,000 shares worth $108,016. Smith Martin Dewayne sold 8,000 shares worth $438,498. Portacci Michael T sold 14,692 shares worth $748,180. The insider Cash W Larry sold 195,000 shares worth $9.33 million.

Community Health Systems, Inc. is a hospital firm and an operator of acute care hospitals in communities across the United States. The company has a market cap of $1.60 billion. The Firm provides healthcare services through the hospitals that it owns and operates in non-urban and selected urban markets throughout the United States. It has 3.84 P/E ratio. It operates in two operating divisions: hospital activities and home care agencies operations.