HCP Inc. (HCP) Upgraded to Buy at Zacks Investment Research
HCP Inc. (NYSE:HCP) was upgraded by Zacks Investment Research from a “hold” rating to a “buy” rating in a research note issued to investors on Wednesday. The brokerage presently has a $41.00 price target on the real estate investment trust’s stock. Zacks Investment Research’s price target would indicate a potential upside of 11.29% from the stock’s previous close.
According to Zacks, “HCP’s current quarter funds from operations (FFO) per share estimate moved up over the past 60 days. Recently, the company revealed pricing a $750 million offering of notes by its wholly owned subsidiary, Quality Care Properties, Inc. (QCP) in relation with the planned spin-off. Notably in May, its Board of Directors approved the spin-off of the HCR ManorCare’s (HCRMC) portfolio of Skilled Nursing Facility (SNF) and assisted living assets, and other skilled nursing assets, into an independent and publicly-traded REIT, creating more values for shareholders. Further, HCP stands to gain from its diverse portfolio, rising healthcare spending and an aging population. Also, an anticipated continuation of low-rate environment is an advantage for it, though its huge dependence on few geographic markets and cut-throat competition remain as concerns.”
Several other research firms also recently weighed in on HCP. Citigroup Inc. raised their target price on shares of HCP from $34.00 to $38.00 and gave the company a “neutral” rating in a report on Wednesday, August 24th. BTIG Research began coverage on shares of HCP in a report on Thursday, August 25th. They set a “neutral” rating for the company. Wells Fargo & Co. reiterated a “hold” rating on shares of HCP in a report on Sunday, September 4th. Raymond James Financial Inc. began coverage on shares of HCP in a report on Tuesday, July 26th. They set an “underperform” rating for the company. Finally, Mizuho lifted their price target on shares of HCP from $32.00 to $37.00 and gave the stock a “neutral” rating in a report on Wednesday, August 10th. Six research analysts have rated the stock with a sell rating, eleven have issued a hold rating and two have given a buy rating to the stock. The stock presently has a consensus rating of “Hold” and a consensus price target of $34.61.
HCP (NYSE:HCP) opened at 36.84 on Wednesday. HCP has a 52-week low of $25.11 and a 52-week high of $40.43. The firm’s market capitalization is $17.23 billion. The company’s 50-day moving average is $38.72 and its 200-day moving average is $36.04.
HCP (NYSE:HCP) last posted its earnings results on Tuesday, August 9th. The real estate investment trust reported $0.74 earnings per share for the quarter, beating the Thomson Reuters’ consensus estimate of $0.70 by $0.04. HCP had a negative net margin of 2.52% and a negative return on equity of 0.67%. The firm earned $662.20 million during the quarter, compared to the consensus estimate of $631.25 million. During the same period last year, the firm posted $0.79 EPS. The firm’s revenue for the quarter was up 9.0% on a year-over-year basis. Equities analysts predict that HCP will post $2.83 earnings per share for the current year.
In other news, insider Kendall K. Young sold 9,000 shares of HCP stock in a transaction that occurred on Wednesday, August 24th. The shares were sold at an average price of $39.46, for a total transaction of $355,140.00. Following the sale, the insider now owns 36,183 shares in the company, valued at $1,427,781.18. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. Also, insider Thomas D. Kirby sold 3,000 shares of HCP stock in a transaction that occurred on Wednesday, September 7th. The shares were sold at an average price of $40.24, for a total transaction of $120,720.00. The disclosure for this sale can be found here. Insiders own 0.22% of the company’s stock.
Several hedge funds have recently bought and sold shares of HCP. Acadian Asset Management LLC purchased a new stake in HCP during the first quarter worth about $701,000. Glenmede Trust Co. NA raised its stake in HCP by 1.0% in the first quarter. Glenmede Trust Co. NA now owns 43,235 shares of the real estate investment trust’s stock worth $1,407,000 after buying an additional 428 shares in the last quarter. TIAA CREF Investment Management LLC raised its stake in HCP by 2.4% in the first quarter. TIAA CREF Investment Management LLC now owns 1,793,211 shares of the real estate investment trust’s stock worth $58,423,000 after buying an additional 42,238 shares in the last quarter. Teachers Advisors Inc. raised its stake in HCP by 2.7% in the first quarter. Teachers Advisors Inc. now owns 1,311,228 shares of the real estate investment trust’s stock worth $42,720,000 after buying an additional 34,803 shares in the last quarter. Finally, Franklin Resources Inc. raised its stake in HCP by 20.5% in the first quarter. Franklin Resources Inc. now owns 2,498,130 shares of the real estate investment trust’s stock worth $81,389,000 after buying an additional 424,832 shares in the last quarter. Institutional investors own 90.96% of the company’s stock.
HCP, Inc (HCP) is a self-administered real estate investment trust (REIT). The Company invests in real estate serving the healthcare industry in the United States. Its portfolio consists of investments in various healthcare segments: senior housing, post-acute/skilled nursing, life science, medical office and hospital.
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