HCA Healthcare (NYSE:HCA) has seen its target price increased from $520.00 to $558.00 by The Goldman Sachs Group, according to a research note released on Wednesday. The brokerage maintains a buy rating on the stock, reflecting confidence in the company’s future performance. This adjustment comes amidst a flurry of positive commentary from various financial institutions regarding HCA’s stock.
In a report issued on October 27, Bank of America raised its price objective for HCA Healthcare from $430.00 to $470.00 while designating the company with a “neutral” rating. Additionally, TD Cowen reaffirmed a “buy” rating on HCA shares in a recent research note. Stephens also raised its price target from $450.00 to $500.00, assigning an “overweight” rating. Wells Fargo & Company set a target price of $481.00, while Robert W. Baird lifted its price objective from $423.00 to $450.00, maintaining a “neutral” stance.
Currently, fifteen investment analysts have rated HCA Healthcare with a buy rating, eight have designated it as hold, and one has issued a sell rating. According to MarketBeat, the stock enjoys a consensus rating of “Moderate Buy” and has an average target price of $518.76.
Recent Earnings and Dividend Announcement
HCA Healthcare recently reported its earnings for the fourth quarter on January 27, revealing earnings per share (EPS) of $8.01. This figure surpassed analysts’ expectations of $7.37 by $0.64. The company recorded a net margin of 8.97% despite a negative return on equity of 409.11%. Revenue for the quarter stood at $19.51 billion, slightly below the consensus estimate of $19.67 billion, marking a year-over-year revenue increase of 6.7%.
HCA Healthcare has also set its fiscal year 2026 guidance at EPS between $29.10 and $31.50. Analysts project that the company will achieve an EPS of $24.98 for the current year.
Additionally, HCA Healthcare announced a quarterly dividend of $0.78 per share, set to be paid on March 31, 2024. Shareholders of record on March 17 will receive this dividend, which reflects an increase from the previous quarterly dividend of $0.72. This results in an annualized dividend of $3.12 and a yield of 0.6%. The current dividend payout ratio stands at 10.15%.
Insider Activity and Institutional Investment
In related news, executive vice president Michael R. Mcalevey sold 3,892 shares of HCA’s stock on November 5 at an average price of $473.79, totaling approximately $1.84 million. This transaction represents a 52.74% reduction in ownership, leaving Mcalevey with 3,487 shares valued at around $1.65 million. Insider ownership currently accounts for 1.30% of the company’s stock.
Various institutional investors have also adjusted their holdings in HCA Healthcare. Capital World Investors increased its stake by 3.8% during the third quarter, now owning 4,959,336 shares worth approximately $2.11 billion. Norges Bank also entered a new position in HCA Healthcare valued at $1.15 billion. Meanwhile, Arrowstreet Capital Limited Partnership expanded its stake by 1.8%, holding 2,065,225 shares valued at $880.2 million.
Viking Global Investors LP significantly increased its position by 58.5% during the second quarter, amassing 1,872,133 shares worth $717.2 million. Legal & General Group Plc also raised its stake by 0.8%, bringing its total to 1,124,511 shares valued at $479.3 million. Institutional investors and hedge funds collectively own 62.73% of HCA Healthcare’s stock.
HCA Healthcare, headquartered in Nashville, Tennessee, operates a network of hospitals and healthcare facilities. Founded in 1968, the company has become a significant provider of inpatient and outpatient services through both organic growth and acquisitions. Its core activities include operating acute care hospitals, surgical centers, emergency departments, and outpatient clinics.
As HCA Healthcare continues to attract attention from analysts and investors alike, its financial performance and strategic decisions will be closely monitored in the coming quarters.
