Community Health Systems Inc. (CYH) Receives “Neutral” Rating from Robert W. Baird

Jefferies Group restated a hold rating on shares of Community Health Systems in a report on Wednesday, August 10th.

Its stock jumped 15.8 percent on September 16 as investors reacted to rumors the company was considering a sale or other strategic option as it faces a variety of financial stressors.

“While planned asset sales will allow the company to repay debt, the impact on leverage will be limited given the significant amount of debt outstanding and the foregone earnings before interest, taxes, depreciation and amortization”, Moody’s Investors Service Inc said in a note on Monday. 18 Financial Analysts covered the company’s stock. However, on Monday its stock dropped to $11.08 at end of business, down from $12.07 at the open of business. Community Health Systems has a one year low of $9.66 and a one year high of $40.55. The share of CYH now has Market Capitalization of 1.26 Billion. The 50-day moving average is right around where shares are trading now, while the 200-day moving average is up at $14.64. The company reported $0.09 earnings per share for the quarter, missing the consensus estimate of $0.56 by $0.47. Community Health Systems had a negative net margin of 7.55% and a positive return on equity of 2.10%. A share of CHS, which was 60 dollars previous year, closed Friday at 11.50.

Including long-term debt, Community Health has an enterprise value of about $17 billion.

A number of large investors have recently bought and sold shares of CYH.

CHS operates or leases 158 hospitals in 22 states with 223,000 employees and its stock has slid from $50 per share past year to $10.

Community Health Systems has been exploring ways to raise cash. Buying continues as the stock moves higher, suggesting a strong appetite for the stock. The Median price target for the stock is measured at $13.50.

CFO Larry Cash said in a release earlier this month that of the 153 hospitals CHS now operates, the former HMA facilities continued to post losses- 3 percent in the second quarter. Advisors Asset Management Inc. now owns 10,750 shares of the company’s stock worth $130,000 after buying an additional 939 shares during the last quarter. The company’s institutional ownership is monitored at 94.9%.

Companies that virtualized their inventories cannot only save costs by reducing the number of parts made “just-in-case” but also can produce smaller quantities cost effectively and with the same quality, in addition to minimizing lead-times because parts are produced closer to where they are needed.

CHS and its affiliates own, operate or lease 158 hospitals in 22 states with 123,000 employees overall.