HCA Shares Surge 12% on Buyback
Hospital company HCA (NYSE:HCA) surged over 10% after Bank of America (NYSE:BAC) agreed to sell its entire stake in the hospital company back to it. The bank’s three designees on HCA’s board will also step down. Bank of America owned about 80.8 million shares in the company. That works out to 15.6% of its stock.
HCA trades at $20.61 at a P/E ratio near 10 — much lower than its industry peers. The company trades at a sales multiple of 0.30 which is also much lower than its industry rivals. Technically speaking, shares trade well below their declining 50 and 200 day moving averages. The MACD is bullish while RSI is pointing up at 50.