Kiltearn Partners Boosts HCA Healthcare Stake by 8.1% to $18.2 Million

Kiltearn Partners LLP increased its investment in HCA Healthcare, Inc. by 8.1% during the third quarter of 2023, according to a recent filing with the U.S. Securities and Exchange Commission (SEC). The firm now holds a total of 42,700 shares, having acquired an additional 3,200 shares during the quarter, which brings the value of its stake to approximately $18.2 million. This investment accounts for about 3.6% of Kiltearn Partners’ total portfolio, making HCA Healthcare its ninth largest holding.

HCA Healthcare has attracted interest from several institutional investors and hedge funds. Notably, Clearstead Trust LLC raised its position in HCA Healthcare by a remarkable 311.8% in the second quarter, now holding 70 shares valued at approximately $27,000 after purchasing 53 additional shares. Similarly, Harbor Capital Advisors Inc. increased its stake by 82.9% in the third quarter, owning 75 shares valued at around $32,000 after acquiring 34 shares during the period.

In addition, Twin Peaks Wealth Advisors LLC entered a new position in HCA Healthcare valued at about $40,000 in the second quarter, while Compound Global Advisors LLC also acquired a new stake during the third quarter, estimated at $44,000. True Wealth Design LLC significantly boosted its position by 179.5%, now holding 109 shares worth approximately $47,000. Currently, institutional investors and hedge funds own 62.73% of HCA Healthcare’s stock.

Insider Transactions and Stock Performance

Recent insider trading activity has seen significant transactions at HCA Healthcare. Senior Vice President Christopher F. Wyatt sold 4,000 shares on February 11, 2024, at an average price of $505.00, totaling $2.02 million. Following this transaction, he retains 44,379 shares valued at approximately $22.41 million, marking an 8.27% decrease in his ownership. Another senior vice president, Jennifer Berres, sold 8,020 shares on the same day at an average price of $514.58, amounting to roughly $4.13 million. After this sale, she owns 11,993 shares valued at around $6.17 million, reflecting a 40.07% decrease in her stake. In total, insiders sold 15,214 shares worth about $7.80 million in the last quarter, with insiders currently holding 1.30% of the stock.

HCA Healthcare recently reported its earnings results on January 27, 2024, revealing earnings per share of $8.01, surpassing analysts’ expectations of $7.37 by $0.64. The company reported a negative return on equity of 409.11% and a net margin of 8.97%. Revenues for the quarter reached $19.51 billion, slightly below the projected $19.67 billion. Year-over-year, revenues increased by 6.7%, with the company setting its fiscal year 2026 guidance at $29.10 to $31.50 earnings per share.

Dividend Increase and Analyst Ratings

HCA Healthcare has announced a quarterly dividend of $0.78 per share, payable on March 31, 2024, to shareholders of record on March 17, 2024. This represents an increase from its previous dividend of $0.72, resulting in an annualized dividend of $3.12 and a yield of 0.6%. The company’s payout ratio currently stands at 10.15%.

The stock has received positive attention from several analysts recently. UBS Group raised its target price from $598.00 to $635.00 and assigned a “buy” rating. Similarly, JPMorgan Chase & Co. increased its price target from $420.00 to $535.00 with a “neutral” rating. Other analysts, including Argus, Royal Bank of Canada, and Truist Financial, have also adjusted their ratings and price targets upward.

In total, sixteen analysts have rated HCA Healthcare with a “buy” rating, while eight have issued a “hold” rating and one has given a “sell” rating. According to data from MarketBeat, the stock currently has a consensus rating of “Moderate Buy” and a consensus price target of $534.50.

About HCA Healthcare

HCA Healthcare, headquartered in Nashville, Tennessee, is a for-profit operator of healthcare facilities, founded in 1968. The company owns and manages a network of hospitals and related healthcare facilities, focusing on both inpatient and outpatient services. Its core activities include operating acute care hospitals, freestanding surgical and emergency centers, and outpatient clinics, providing a comprehensive range of medical services.