NASHVILLE—Erol Akdamar, Group President of HCA Healthcare Inc. (NYSE:HCA), recently executed a series of stock transactions, including the sale of shares worth approximately $1.02 million. On November 14, Akdamar sold 2,900 shares at a price of $353 each.
In addition to the sale, Akdamar also exercised stock appreciation rights on November 12, acquiring 20,000 shares at an exercise price of $68.96 per share, resulting in a total value of approximately $1.38 million. These transactions left him with direct ownership of 6,843 shares.
Furthermore, Akdamar executed a transaction involving 10,257 shares at $350.53 per share, accounting for a total value of roughly $3.60 million. Following these transactions, he retains indirect ownership of 60,497 shares through a family trust and 60,000 shares through an LLC.
In other recent news, HCA Healthcare has demonstrated resilience in its financial performance despite challenges posed by Hurricanes Helene and Milton. The company reported a 25% increase in adjusted diluted earnings per share to $4.90 and a 7.1% revenue growth from the same facilities. However, these natural disasters led to an estimated revenue loss of $50 million for Q3, with an additional projected loss of $200-$300 million for Q4.
HCA Healthcare also disclosed expansion plans, aiming to add 600 inpatient beds and 100 outpatient facilities by the end of 2024. The company anticipates volume growth between 3% to 4% for 2025, with formal guidance to be provided in January.
Several firms have adjusted their price targets for HCA Healthcare following these developments. Oppenheimer raised its target to $400, maintaining an Outperform rating. KeyBanc Capital Markets reduced its target to $420, TD Cowen adjusted its target to $440, Mizuho (NYSE:MFG) maintained its target at $425, and Cantor Fitzgerald raised its target to $405. These adjustments reflect the recent performance and future expectations of HCA Healthcare as analyzed by these firms.
InvestingPro Insights
HCA Healthcare's recent insider transactions occur against a backdrop of strong financial performance and market positioning. According to InvestingPro data, HCA boasts a substantial market capitalization of $87.61 billion, reflecting its significant presence in the healthcare sector. The company's revenue for the last twelve months as of Q3 2024 stood at an impressive $69.62 billion, with a healthy revenue growth of 10.23% over the same period.
InvestingPro Tips highlight HCA's financial strength and shareholder-friendly policies. The company has been aggressively buying back shares, a strategy that often signals management's confidence in the company's future prospects. Additionally, HCA has raised its dividend for four consecutive years, demonstrating a commitment to returning value to shareholders. This is particularly noteworthy given the company's relatively low dividend yield of 0.76%, suggesting room for future dividend growth.
The stock's performance has been robust, with a one-year price total return of 46.59% as of the latest data. This outperformance is complemented by HCA's status as a prominent player in the Healthcare Providers & Services industry, as noted in another InvestingPro Tip.
Investors considering HCA should note that the stock is trading at a P/E ratio of 15.38, which may be viewed as reasonable given the company's growth and market position. However, an InvestingPro Tip cautions that HCA is trading at a high P/E ratio relative to near-term earnings growth, suggesting investors should carefully consider valuation metrics.
For those seeking a deeper analysis, InvestingPro offers additional insights with 10 more tips available, providing a comprehensive view of HCA's investment potential.
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