HCP Inc. (HCP) Lifted to Buy at Zacks Investment Research
Zacks Investment Research upgraded shares of HCP Inc. (NYSE:HCP) from a hold rating to a buy rating in a research note issued to investors on Wednesday. The brokerage currently has $41.00 price target on the real estate investment trust’s stock.
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.”
A number of other equities research analysts have also weighed in on the company. Morgan Stanley lowered HCP from an equal weight rating to an underweight rating and set a $32.00 target price for the company. in a research report on Wednesday, June 22nd. Raymond James Financial Inc. began coverage on HCP in a report on Tuesday, July 26th. They issued an underperform rating on the stock. Mizuho reiterated a hold rating and issued a $32.00 price target on shares of HCP in a report on Tuesday, July 12th. Jefferies Group reiterated a neutral rating on shares of HCP in a report on Wednesday, July 6th. Finally, Bank of America Corp. upgraded HCP from an underperform rating to a neutral rating and set a $38.50 price target on the stock in a report on Tuesday, October 4th. Six analysts have rated the stock with a sell rating, twelve have given a hold rating and one has given a buy rating to the company’s stock. The stock presently has an average rating of Hold and an average price target of $34.61.
HCP (NYSE:HCP) opened at 35.91 on Wednesday. The company’s market cap is $16.79 billion. HCP has a 12-month low of $25.11 and a 12-month high of $40.43. The firm has a 50-day moving average price of $38.42 and a 200-day moving average price of $36.06.
HCP (NYSE:HCP) last issued its earnings results on Tuesday, August 9th. The real estate investment trust reported $0.74 earnings per share for the quarter, beating the Zacks’ consensus estimate of $0.70 by $0.04. The business earned $662.20 million during the quarter, compared to analyst estimates of $631.25 million. HCP had a negative return on equity of 0.67% and a negative net margin of 2.52%. HCP’s revenue was up 9.0% on a year-over-year basis. During the same period in the previous year, the company posted $0.79 EPS. On average, analysts forecast that HCP will post $2.82 earnings per share for the current fiscal year.
In other news, EVP Jonathan M. Bergschneider sold 7,651 shares of the business’s stock in a transaction dated Tuesday, August 23rd. The stock was sold at an average price of $39.78, for a total value of $304,356.78. Following the completion of the transaction, the executive vice president now owns 54,095 shares of the company’s stock, valued at approximately $2,151,899.10. The sale was disclosed in a legal filing with the SEC, which is accessible through this link. Also, insider Darren A. Kowalske sold 2,250 shares of the business’s stock in a transaction dated Wednesday, August 31st. The shares were sold at an average price of $39.20, for a total value of $88,200.00. Following the completion of the transaction, the insider now directly owns 9,793 shares of the company’s stock, valued at approximately $383,885.60. The disclosure for this sale can be found here. 0.22% of the stock is owned by insiders.
Several institutional investors have recently modified their holdings of the stock. State Street Corp boosted its position in HCP by 12.0% in the second quarter. State Street Corp now owns 39,551,521 shares of the real estate investment trust’s stock worth $1,399,338,000 after buying an additional 4,237,902 shares during the last quarter. Cohen & Steers Inc. boosted its position in HCP by 9.7% in the second quarter. Cohen & Steers Inc. now owns 40,390,203 shares of the real estate investment trust’s stock worth $1,429,005,000 after buying an additional 3,565,515 shares during the last quarter. Franklin Resources Inc. boosted its position in HCP by 119.5% in the second quarter. Franklin Resources Inc. now owns 5,484,225 shares of the real estate investment trust’s stock worth $194,032,000 after buying an additional 2,986,095 shares during the last quarter. Emerald Acquisition Ltd. acquired a new position in HCP during the second quarter worth $86,770,000. Finally, Vanguard Group Inc. boosted its position in HCP by 2.5% in the second quarter. Vanguard Group Inc. now owns 64,880,191 shares of the real estate investment trust’s stock worth $2,295,461,000 after buying an additional 1,578,634 shares during the last quarter. 90.96% of the stock is owned by institutional investors and hedge funds.
HCP Company Profile
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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