HCA Healthcare (NYSE:HCA) has received a significant boost in its target price from the Goldman Sachs Group, which increased its projection from $520.00 to $558.00 in a research note released on Wednesday. The firm has maintained a “buy” rating for the stock, reflecting strong market confidence in the company’s future performance.
Several other investment firms have also recently updated their assessments of HCA Healthcare. Bank of America adjusted its price objective from $430.00 to $470.00, assigning a “neutral” rating in a report on October 27, 2023. TD Cowen reaffirmed a “buy” rating for HCA shares in a note published on the same day. Additionally, Stephens raised its price target from $450.00 to $500.00, giving the company an “overweight” rating. Wells Fargo & Company set a price target of $481.00, while Robert W. Baird increased its target from $423.00 to $450.00, maintaining a “neutral” rating.
As of now, fifteen investment analysts have rated HCA Healthcare with a “buy” designation, eight have issued a “hold” rating, and one has assigned a “sell” rating. According to MarketBeat, the stock currently holds a consensus rating of “Moderate Buy” with an average target price of $518.76.
Recent Financial Performance
HCA Healthcare released its latest earnings results on January 27, 2024, reporting earnings per share (EPS) of $8.01 for the quarter. This figure surpassed analysts’ expectations of $7.37 by $0.64. The company achieved a net margin of 8.97% and had a negative return on equity of 409.11%. HCA’s revenue for the quarter reached $19.51 billion, slightly below the consensus estimate of $19.67 billion. This represents a 6.7% increase compared to the same quarter last year, when the company reported an EPS of $6.22.
Looking ahead, HCA Healthcare has set its fiscal year 2026 guidance at EPS between $29.10 and $31.50. Analysts predict the company will report an EPS of $24.98 for the current year.
Dividend Announcement and Insider Activity
In addition to positive financial results, HCA Healthcare has announced an increase in its quarterly dividend. Shareholders of record on March 17, 2024 will receive a dividend of $0.78 per share, payable on March 31, 2024. This marks an increase from the previous quarterly dividend of $0.72, resulting in an annualized dividend of $3.12 and a yield of 0.6%. The company’s current dividend payout ratio stands at 10.15%.
In related news, HCA Healthcare’s executive vice president, Michael R. McAlevey, sold 3,892 shares of the company on November 5, 2023, at an average price of $473.79, totaling approximately $1.84 million. This transaction resulted in a 52.74% decrease in his ownership of the stock. Following the sale, McAlevey holds 3,487 shares valued at around $1.65 million.
Institutional Investor Insights
Institutional investors have been active in adjusting their stakes in HCA Healthcare. Capital World Investors increased its stake by 3.8% during the third quarter, now owning 4,959,336 shares valued at approximately $2.11 billion. Norges Bank also acquired a new position in the company, valued at $1.15 billion during the second quarter. Other notable changes include Arrowstreet Capital, which increased its stake by 1.8%, and Viking Global Investors, which raised its position by 58.5% during the same period.
Overall, institutional investors and hedge funds currently own 62.73% of HCA Healthcare’s stock, demonstrating strong institutional confidence in the company’s growth trajectory.
HCA Healthcare, headquartered in Nashville, Tennessee, operates a network of hospitals and related healthcare facilities. Founded in 1968, the company has expanded through both organic growth and acquisitions, establishing itself as a significant provider of inpatient and outpatient services. Its core operations include acute care hospitals, freestanding surgical and emergency centers, and various outpatient clinics.
