CIBC buys new $14.6M stake in HCA as hospital operator beats on revenue
What's the deal? CIBC World Market Inc.Dealroom has a profile for this one. Try Dealroom → acquired a new stake in HCA HealthcareDealroom has a profile for this one. Try Dealroom → in the second quarter, buying 37,460 shares worth roughly $14,605,000, according to its most recent SEC filing.
The context: HCA is a for-profit hospital operator based in Nashville, Tennessee. Founded in 1968, it runs acute care hospitals, surgical and emergency centres, and outpatient clinics across the US.
How are the numbers? HCA reported second-quarter revenue of $20.23 billion, up 8.7% year over year and ahead of the $19.76 billion consensus. Earnings of $7.59 per share topped estimates by $0.03 and rose from $6.84 a year earlier.
Shares opened at $429.19 on Tuesday, giving the company a market cap of $92.92 billion. The stock trades within a 1-year range of $353.99 to $556.52 and carries a PE ratio of 14.37.
Who else is in? Institutional investors and hedge funds own 62.73% of HCA. BlackRock took a new stake worth $5,069,974,000 in the second quarter, while Viking Global InvestorsDealroom has a profile for this one. Try Dealroom → raised its position by 58.5% to 1,872,133 shares valued at $717,214,000.
What about the dividend? HCA declared a quarterly dividend of $0.78 per share, payable September 30 to holders of record on September 16. That works out to $3.12 annualised, a yield of 0.7% and a payout ratio of 10.45%.
The signal: CIBC's purchase is a small addition to a heavily institution-owned name, but it lands as HCA posts revenue and earnings above expectations — a sign of steady demand for the hospital operator despite a stock trading well below its 1-year high.
Read more: tickerreport.com
Image credit: Medill DC
