Analyst Downgrades: UnitedHealth Group Inc, HCA Holdings Inc, and Community Health Systems

Analysts downwardly revised their ratings and price targets on healthcare stocks UnitedHealth Group Inc (NYSE:UNH), HCA Holdings Inc (NYSE:HCA), and Community Health Systems (NYSE:CYH)

Josh Selway

Nov 9, 2016 at 10:27 AM

Analysts are weighing in on healthcare stocks UnitedHealth Group Inc (NYSE:UNH), HCA Holdings Inc (NYSE:HCA), and Community Health Systems (NYSE:CYH). Here's a quick roundup of today's bearish brokerage notes on UNH, HCA, and CYH.

UNH is down 1.4% this morning at $140.97, following a downgrade to "neutral" from "buy" at Mizuho. Citing last night's election results, the brokerage firm said a "GOP triple play, the worst possible outcome for (healthcare) stocks, is a reality." On the charts, UnitedHealth Group Inc has been stifled by the $144 level repeatedly this year, and an unwinding of optimism in the options pits could weigh on the shares further. At the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), the stock boasts a 10-day call/put volume ratio of 2.88, representing an annual high.

As for HCA, the shares are 16.3% lower at $67.68, as Mizuho also weighed in with a downgrade to "neutral" from "buy." The stock is now on pace for its lowest close since February, though it remains slightly higher year-to-date. However, more bearish brokerage notes could add to HCA Holdings Inc's losses. At the moment, 12 of 17 brokerage firms consider the stock a "buy" or better, and none call it a "sell."

Turning to CYH, the shares have shed 24.6% this morning to trade at $4.48 -- earlier touching an all-time low of $4.42 -- with RBC cutting its price target to $6 from $15. Going back one year, the stock is now down 85%, which is just fine with short sellers. For instance, 36.5% of Community Health Systems' float is sold short, equating to 5.3 days' worth of buying power, at average daily volumes.

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