Stock FAQs

why is hca stock falling

by Lolita Mayert Published 3 years ago Updated 2 years ago
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Is HCA good stock to buy?

HCA Healthcare has received a consensus rating of Buy. The company's average rating score is 2.70, and is based on 14 buy ratings, 6 hold ratings, and no sell ratings.

Is HCA stock going to split?

In a regulatory filing, HCA revealed plans for a stock split under which existing private equity owners of its privately held stock would get 5.5 shares for each share currently held; and to boost its number of authorized shares.

Who is buying HCA?

Piedmont Healthcare announced the purchase Monday from HCA Healthcare. The move would give Piedmont 15 acute care hospitals statewide, as it jockeys with other major Atlanta-area health systems for size and market power.May 3, 2021

What to do if a stock keeps falling?

If the stock declines significantly versus the industry or if there is above-average volume as the price falls, you may want to consider selling the position. However, if the stock is down on average volume, you may want to buy additional shares. The key, again, is whether the fundamentals of the company have changed.

Is HCA publicly traded?

HCA Healthcare is an American for-profit operator of health care facilities that was founded in 1968....HCA Healthcare.FormerlyHCA Holdings, Inc.TypePublicTraded asNYSE: HCA S&P 500 componentIndustryHealth careFounded1968 Nashville, Tennessee, U.S.10 more rows

How does HCA Espp work?

The ESPP allows you to set aside a small amount from each paycheck, on an after-tax basis, to purchase shares of HCA Healthcare stock at a discount. You have four opportunities (or “enrollment periods”) each year to buy shares. You have a unique opportunity to be an owner!

Did Cartersville Medical Center get bought out?

CARTERSVILLE, GA — Atlanta-based Piedmont Healthcare announced Monday that it will buy Cartersville Medical Center, with the purchase set to close July 31. The Bartow County facility is one of four in Georgia that Piedmont will buy from HCA Healthcare.May 3, 2021

Did WellStar buy Piedmont?

Piedmont Healthcare and WellStar Health System, two of Atlanta's largest hospital systems, announced Monday the creation of a new partnership designed to help both systems stay strong as health care evolves.Nov 12, 2012

Is Emory a HCA hospital?

"HCA and Emory Healthcare formed this partnership to build on their long-standing reputations for delivering quality healthcare services and to develop a new hospital in the growing Johns Creek community," said John T. Fox, Emory Healthcare's president and CEO.Jul 13, 2010

Why are stocks crashing?

Stock market crashes are often the result of several economic factors, including speculation, panic selling, and/or economic bubbles, and they may occur amid the fallout of an economic crisis or major catastrophic event.Feb 28, 2022

Should you sell stocks before year end?

Also, be aware that if you do sell, you can't repurchase that stock or a substantially identical investment within 30 days, or else you can't take a tax deduction for the loss. So don't plan on selling a stock before the end of the year and then buying it back shortly after New Year's Day.Dec 21, 2018

When should you buy a falling stock?

If you feel the stock has fallen because the market has overreacted to something, then buying more shares may be a good thing. Likewise, if you feel there has been no fundamental change to the company, then a lower share price may be a great opportunity to scoop up some more stock at a bargain.

What happened

So what

Shares of HCA Healthcare ( HCA 0.74% ) were sinking 17.4% lower as of 11:33 a.m. EDT on Wednesday. The hospital operator didn't report any new developments, but rising worries about the impact of the spread of COVID-19 took a toll on its stock.

NYSE: HCA

There are a couple of ways investors can look at the prospects for HCA in the midst of the COVID-19 pandemic and the related stock market crash. The perspective that's more prevalent right now is obviously a pessimistic one. Investors are afraid the number of cases of COVID-19 could overwhelm HCA's hospitals in the coming weeks.

Now what

On the other hand, HCA's admissions rates will likely go through the roof. That's one of the most important lead indicators of the company's financial performance.

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While you might think that healthcare stocks such as HCA might be less impacted by the COVID-19 outbreak than others, that hasn't been the case. But hospitals play such a vital role even when there isn't a pandemic going on that HCA's future still appears to be solid.

What happened

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So what

In response to the second-quarter earnings report, shares of HCA Healthcare (NYSE: HCA), a for-profit hospital conglomerate, dropped as much as 12% in early morning trading on Tuesday. Shares were down about 9% as of 11:35 a.m. EDT.

Now what

Sales jumped 9.5% to $12.6 billion. That was a hair shy of the $12.61 billion that Wall Street was looking for.

When did the ACA become law?

HCA's quarterly results weren't great, but there are several positive takeaways for investors. Revenue continues to grow at a strong rate, management continues to buy back lots of stock, and profit guidance was raised for the full year.

Does HCA receive Medicare?

This is a good time to remember that nothing changes quickly in healthcare. The ACA became law in 2010, but HCA Healthcare and its peers are still adjusting to the shift from pay-per-service arrangements to payments based on patient outcomes.

Justice Ruth Bader Ginsburg's death jeopardizes Obamacare's future, and that puts healthcare companies' revenue at risk

The sums HCA Healthcare receives from Medicare and Medicare Advantage are significantly lower than established gross charges for the services it provides . The hospital operator also offers discounts to managed care organizations, such as UnitedHealth Group ( NYSE:UNH), but the government nearly always wrangles a deeper discount than private insurance companies.

NYSEMKT: XLV

The future of Obamacare became murkier this week with the passing of longtime Supreme Court Justice Ruth Bader Ginsburg, who affirmed the constitutionality of various parts of the Affordable Care Act (ACA) in numerous of rulings.

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The Health Care Select Sector SPDR Fund ( XLV -0.75% ) and SPDR S&P Biotech ETF ( XBI -1.35% ) dropped by 2.2% and 3.6%, respectively, and declines were bigger for many individual healthcare stocks. For instance, hospital giant HCA Healthcare ( HCA -2.67% ) declined by 5.1% and Medicaid-insurer Centene ( CNC -0.91% ) fell by 8.4%.

How Quickly Is HCA Healthcare Increasing Earnings Per Share?

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Are HCA Healthcare Insiders Aligned With All Shareholders?

As one of my mentors once told me, share price follows earnings per share (EPS). It's no surprise, then, that I like to invest in companies with EPS growth. It certainly is nice to see that HCA Healthcare has managed to grow EPS by 22% per year over three years.

HCA Market Share Is Large In A Fragmented Space

We would not expect to see insiders owning a large percentage of a US$72b company like HCA Healthcare. But we are reassured by the fact they have invested in the company. Notably, they have an enormous stake in the company, worth US$1.2b.

Does HCA Healthcare Have Competitive Advantages?

HCA Healthcare has a market share of about 25.1 percent of retirees, which is a large portion of health care patients. But that’s just one piece of the entire market puzzle – there are 6,090 hospitals across the U.S. with 919,559 beds, according to the American Hospital Association.

Are HCA Revenues Growing?

The company has several key ingredients that keep it at the forefront of hospital care – it attracts top talent through its Harvard and government partnerships. HCA Healthcare regularly publishes in medical journals that give it a high profile and makes working for it more prestigious than other career routes.

What Rate Are HCA Earnings Growing?

HCA Healthcare is indeed growing revenues – the company’s 2020 earnings report showed $51.53 billion in revenue for the year. This compares to $51.33 billion in 2019 and guidance of $55.5 billion for 2021, which is a respectable growth rate for its size.

HCA Management Quality

HCA earnings tend to spike, perhaps unsurprisingly, around the Winter season and decline marginally during the summer months.

Is HCA Stock a Good Investment? Conclusion

HCA Healthcare was founded by Dr. Thomas Frist Sr. Dr. Thomas Frist Jr., and Jack Massey. They formed the company to standardize healthcare, and they do it by investing in high-quality people. Executive leadership includes CEO Samuel N. Hazen, an almost 40 year veteran of the firm.

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