Community Health Systems (NYSE:CYH) was downgraded by Zacks Investment Research from a “hold” rating to a “sell” rating in a report issued on Monday.

According to Zacks, “Community Health’s shares have underperformed the industry in a year's time. Following lackluster third-quarter results, the company has lowered its 2017 earnings per share guidance. The company has seen a continuous decline in its revenues that have been putting pressure on the bottom line. The company has seen its Zacks Consensus Estimate for 2017 and 2018 earnings being revised in the past 60 days. However, the company is well poised for long term growth on the back of its inorganic strategies. The company’s frequent divestitures to streamline core operations have helped it lower its debt burden. As a part of their restructuring plan, the company has started taking up certain corrective measures in order to bring improvement to its top line.”

Several other analysts also recently issued reports on the stock. ValuEngine downgraded shares of Community Health Systems from a “sell” rating to a “strong sell” rating in a report on Tuesday, November 7th. Morgan Stanley reduced their price target on shares of Community Health Systems from $6.50 to $4.50 and set an “underweight” rating on the stock in a report on Friday, November 3rd. Credit Suisse Group started coverage on shares of Community Health Systems in a report on Thursday, November 2nd. They issued an “underperform” rating and a $3.50 price target on the stock. Jefferies Group reissued a “hold” rating and issued a $7.00 price objective on shares of Community Health Systems in a research report on Tuesday, September 5th. Finally, Robert W. Baird reissued a “hold” rating and issued a $7.00 price objective on shares of Community Health Systems in a research report on Friday, September 1st. Six research analysts have rated the stock with a sell rating, twelve have assigned a hold rating and one has issued a buy rating to the company’s stock. Community Health Systems has a consensus rating of “Hold” and an average target price of $6.47.

Shares of Community Health Systems (NYSE:CYH) opened at $4.04 on Monday. Community Health Systems has a fifty-two week low of $3.85 and a fifty-two week high of $10.51. The company has a debt-to-equity ratio of 10.62, a quick ratio of 1.86 and a current ratio of 2.05.

Community Health Systems (NYSE:CYH) last announced its quarterly earnings results on Wednesday, November 1st. The company reported ($0.77) earnings per share (EPS) for the quarter, missing the consensus estimate of ($0.30) by ($0.47). Community Health Systems had a negative net margin of 3.97% and a negative return on equity of 3.10%. The business had revenue of $3.67 billion during the quarter, compared to analysts’ expectations of $3.70 billion. During the same period last year, the company earned ($0.35) EPS. The firm’s revenue for the quarter was down 16.3% on a year-over-year basis. sell-side analysts forecast that Community Health Systems will post -1.25 EPS for the current year.

In related news, major shareholder Tian Qiao Chen purchased 100,164 shares of the company’s stock in a transaction that occurred on Thursday, December 7th. The stock was purchased at an average price of $3.96 per share, with a total value of $396,649.44. The purchase was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Corporate insiders own 4.70% of the company’s stock.

Several institutional investors have recently added to or reduced their stakes in the company. Vanguard Group Inc. increased its position in shares of Community Health Systems by 4.3% in the second quarter. Vanguard Group Inc. now owns 10,377,548 shares of the company’s stock worth $103,361,000 after acquiring an additional 424,006 shares in the last quarter. Dimensional Fund Advisors LP increased its position in shares of Community Health Systems by 31.3% in the third quarter. Dimensional Fund Advisors LP now owns 6,508,663 shares of the company’s stock worth $49,986,000 after acquiring an additional 1,551,499 shares in the last quarter. JPMorgan Chase & Co. increased its position in shares of Community Health Systems by 226.4% in the third quarter. JPMorgan Chase & Co. now owns 4,228,000 shares of the company’s stock worth $31,880,000 after acquiring an additional 2,932,700 shares in the last quarter. Royce & Associates LP increased its position in shares of Community Health Systems by 10.0% in the third quarter. Royce & Associates LP now owns 2,482,295 shares of the company’s stock worth $19,064,000 after acquiring an additional 226,500 shares in the last quarter. Finally, California Public Employees Retirement System increased its position in shares of Community Health Systems by 11.3% in the third quarter. California Public Employees Retirement System now owns 1,645,329 shares of the company’s stock worth $12,636,000 after acquiring an additional 167,633 shares in the last quarter. 94.74% of the stock is owned by institutional investors.

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About Community Health Systems

Community Health Systems, Inc is an operator of general acute care hospitals and outpatient facilities in communities across the country. The Company operates through hospital operations segment, which includes its general acute care hospitals and related healthcare entities that provide inpatient and outpatient healthcare services.

Analyst Recommendations for Community Health Systems (NYSE:CYH)

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