HCP (HCP) Cut to Sell at Zacks Investment Research

Zacks Investment Research cut shares of HCP (NYSE:HCP) from a hold rating to a sell rating in a research note published on Tuesday.

According to Zacks, “Shares of HCP have underperformed its industry in a year’s time. Notably, the company has resorted to strategic divestitures and is also lowering its Brookdale-portfolio concentration. Although such asset dispositions are encouraging for the company’s long-term growth, the near term dilutive impact on earnings cannot be avoided. Further, the softness in the seniors housing fundamentals amid new supply is anticipated to thwart the company’s pricing power and occupancy levels. Moreover, hike in interest rate and stiff competition remain concerns for the company. Nonetheless, this healthcare REIT is poised to gain from its diverse and high-quality portfolio, increasing healthcare spending and an aging population.”

Other equities analysts have also issued reports about the stock. Stifel Nicolaus upgraded shares of HCP from a hold rating to a buy rating and set a $29.00 target price for the company in a report on Tuesday, December 5th. Mizuho upgraded shares of HCP from a neutral rating to a buy rating and set a $32.00 target price for the company in a report on Thursday, November 2nd. Morgan Stanley lowered their target price on shares of HCP from $31.00 to $29.00 and set an equal weight rating for the company in a report on Monday, September 25th. BMO Capital Markets reiterated a hold rating and set a $28.00 target price on shares of HCP in a report on Wednesday, October 18th. Finally, KeyCorp reiterated a hold rating on shares of HCP in a report on Tuesday, October 17th. Four equities research analysts have rated the stock with a sell rating, eleven have assigned a hold rating and four have assigned a buy rating to the company’s stock. HCP currently has an average rating of Hold and a consensus price target of $30.36.

Shares of HCP (NYSE:HCP) traded down $0.33 on Tuesday, reaching $24.93. 1,768,748 shares of the company’s stock traded hands, compared to its average volume of 3,389,567. The company has a quick ratio of 0.61, a current ratio of 0.61 and a debt-to-equity ratio of 1.17. HCP has a twelve month low of $25.08 and a twelve month high of $33.67. The stock has a market capitalization of $11,690.00, a price-to-earnings ratio of 44.53, a PEG ratio of 2.87 and a beta of 0.33.

HCP (NYSE:HCP) last issued its quarterly earnings data on Thursday, November 2nd. The real estate investment trust reported $0.48 EPS for the quarter, topping the Thomson Reuters’ consensus estimate of $0.46 by $0.02. HCP had a net margin of 27.31% and a return on equity of 8.85%. The business had revenue of $454.00 million during the quarter, compared to analyst estimates of $440.60 million. During the same period last year, the business posted $0.72 earnings per share. HCP’s quarterly revenue was down 14.4% compared to the same quarter last year. analysts anticipate that HCP will post 1.94 earnings per share for the current fiscal year.

A number of hedge funds and other institutional investors have recently made changes to their positions in the stock. BlackRock Inc. raised its holdings in HCP by 1.3% in the 2nd quarter. BlackRock Inc. now owns 46,580,421 shares of the real estate investment trust’s stock worth $1,488,710,000 after acquiring an additional 599,578 shares during the last quarter. Cohen & Steers Inc. raised its holdings in HCP by 26.6% in the 3rd quarter. Cohen & Steers Inc. now owns 35,762,597 shares of the real estate investment trust’s stock worth $995,273,000 after acquiring an additional 7,524,081 shares during the last quarter. State Street Corp raised its holdings in HCP by 0.3% in the 2nd quarter. State Street Corp now owns 27,363,119 shares of the real estate investment trust’s stock worth $874,524,000 after acquiring an additional 74,972 shares during the last quarter. Bank of New York Mellon Corp raised its holdings in HCP by 0.8% in the 3rd quarter. Bank of New York Mellon Corp now owns 13,127,480 shares of the real estate investment trust’s stock worth $365,337,000 after acquiring an additional 107,826 shares during the last quarter. Finally, Daiwa Securities Group Inc. raised its holdings in HCP by 15.4% in the 3rd quarter. Daiwa Securities Group Inc. now owns 12,243,041 shares of the real estate investment trust’s stock worth $340,724,000 after acquiring an additional 1,632,319 shares during the last quarter. Institutional investors own 89.88% of the company’s stock.

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HCP Company Profile

HCP, Inc is a self-administered real estate investment trust. The Company invests in real estate serving the healthcare industry in the United States. The Company’s segments include senior housing triple-net (SH NNN), senior housing operating portfolio (SHOP), life science and medical office. Its senior housing facilities include independent living facilities, assisted living facilities, memory care facilities, care homes, and continuing care retirement communities.

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