tiprankstipranks
Community Health Jumps 7% As a Key Insider Loads up on the Stock
Market News

Community Health Jumps 7% As a Key Insider Loads up on the Stock

Story Highlights

Community Health stock dropped almost 80% year-to-date, yet TipRanks’ data shows that most investors are loading up on the stock, taking advantage of the dip.

A prominent insider at Community Health (CYH) has shown confidence in the business with a large share purchase. CYH stock rose more than 7% in after-hours trading on August 2. However, it dropped nearly 6% in the regular session.

Community Health provides healthcare services. It operates a network of hospitals in more than a dozen states.

Insider Buying Details

In the Securities and Exchange Commission (SEC) filing, Community Health revealed that Wayne T. Smith, its executive chairman, bought one million shares in the company in two transactions completed recently. Smith purchased 200,000 shares at a price of $3 on August 1. 

On August 2, the executive again scooped up an additional 800,000 shares at the price of $2.94. Smith ultimately spent $2.95 million on such deals, increasing his ownership stake in the company to more than $18.6 million.

According to TipRanks, the Insider Confidence Signal is currently Positive for Community Health. In the past three months, corporate insiders have bought CYH stock worth $3.2 million.

Interestingly, TipRanks also provides a list of hot stocks that boasts either a Very Positive or Positive insider confidence signal.

Wall Street’s Neutral Stance on CYH

On August 1, Credit Suisse analyst A.J. Rice reiterated a Hold rating on Community Health with a price target of $6.50, which indicates 128% upside potential. According to TipRanks, which also provides a comprehensive list of top 25 performing insiders, CYH is a Moderate Buy based on two Buys versus four Holds. The average Community Health price target of $5.92 implies 108% upside potential to current levels.

Closing Remarks

The Community Health stock has declined almost 80% year-to-date. The insider buying signals that most believe that the stock has bright prospects and that investors may reap huge rewards by taking advantage of the current dip.

Read full Disclosure

Trending

Name
Price
Price Change
S&P 500
Dow Jones
Nasdaq 100
Bitcoin

Popular Articles