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Medical Care

Peeking at GE HealthCare Techs' Recent Short Interest (NASDAQ:GEHC)

2024-11-29

GE HealthCare Techs has seen a significant rise in the short percent of float, with an increase of 5.19% since its last report. The company currently has 8.72 million shares sold short, accounting for 2.43% of all available regular shares for trading. Based on its trading volume, it typically takes traders 2.36 days to cover their short positions on average.

Why Short Interest Matters

Short interest refers to the number of shares that have been sold short but have not yet been covered or closed out. In short selling, traders sell shares of a company they do not own, anticipating a price decline. If the stock price falls, traders make a profit; if it rises, they incur a loss. Tracking short interest is crucial as it serves as an indicator of market sentiment towards a particular stock. An increase in short interest often signals that investors have become more bearish, while a decrease may indicate a more bullish sentiment.

Technical Analysis

The recent rise in GE HealthCare Techs' short percent of float is a notable development. This indicates that a significant number of shares are currently being sold short. Such a situation can have implications for the stock's future price movement. Analysts closely monitor short interest as it can provide valuable insights into market trends and investor sentiment. For example, if short interest continues to increase, it might suggest that there is a growing belief among investors that the stock price will decline. On the other hand, a decrease in short interest could imply a more optimistic outlook.

Looking at the trading volume and the time it takes to cover short positions, it becomes evident that there is a certain level of market activity surrounding GE HealthCare Techs' shares. This activity can be influenced by various factors such as company news, industry trends, and overall market conditions. Traders need to carefully analyze these factors to make informed decisions regarding their short positions.

Financials Analysis

The company's financials play a crucial role in understanding its performance and the implications of short interest. With 8.72 million shares sold short, it represents a certain percentage of the total available shares. This percentage can give an indication of the market's perception of the company's financial health and future prospects. Analysts often compare a company's short interest with that of its peers to gain a better understanding of its relative position in the market.

GE HealthCare Techs' short interest as a percentage of float is 2.43%, which is lower than the peer group average of 3.98%. This suggests that the company has less short interest compared to its peers. However, it is important to note that short interest alone is not a definitive indicator of a company's performance. Other factors such as revenue growth, profitability, and debt levels also need to be considered.

Market News and Data

The market news and data surrounding GE HealthCare Techs provide valuable context for understanding the significance of short interest. As seen from the chart, the percentage of shares sold short has grown since the last report. This growth does not necessarily mean that the stock will fall in the near-term, but it does indicate that more shares are being shorted. Traders should be aware of this trend and adjust their strategies accordingly.

Market sentiment plays a crucial role in determining stock prices, and short interest is one of the factors that can influence sentiment. An increase in short interest can sometimes lead to a self-fulfilling prophecy if more investors start to believe that the stock will decline. On the other hand, a decrease in short interest can have a positive impact on the stock price as it may indicate a shift in sentiment towards a more bullish outlook.

Benzinga's automated content engine has generated this article and it has been reviewed by an editor. The information provided is for educational purposes only and does not constitute investment advice. Investors should conduct their own research and analysis before making any investment decisions.

A month has elapsed since Acadia Healthcare (ACHC) last released its earnings report. During this time, the company's shares have experienced a decline of approximately 3.3%, underperforming the S&P 500. The question now arises: will the recent negative trend persist leading up to the next earnings release, or is Acadia Healthcare on the verge of a breakout? To gain a better understanding of the important catalysts, let's take a quick look at its most recent earnings report.

Unraveling Acadia Healthcare's Earnings Journey

Acadia Healthcare's Q3 Earnings Beat Estimates

In the third quarter, Acadia Healthcare reported adjusted earnings per share of 91 cents, surpassing the Zacks Consensus Estimate by 1.1%. However, the bottom line remained flat year over year. Total revenues increased by 8.7% year over year to $815.6 million, but fell slightly short of the consensus mark. The third-quarter earnings were boosted by improved volumes and higher patient days.Same-facility revenues of $802.6 million rose 8.6% year over year, although it missed the estimated $808.6 million. The year-over-year improvement was driven by a 3.6% growth in revenue per patient day and a 4.7% increase in patient days. Admissions grew by 2% year over year, and the average length of stay increased by 2.7% year over year. However, it fell slightly short of the growth estimate of 3%.In the overall facility, patient days improved by 4.6% year over year, while admissions grew by 2.4% year over year. Revenue per patient day improved by 3.9% year over year, which was higher than the estimated 2.6%. The average length of stay rose by 2.1% year over year but lagged behind the growth estimate of 3.5%. Adjusted EBITDA climbed 10.5% year over year to $194.3 million, although it was lower than the estimated $195.4 million. The adjusted EBITDA margin deteriorated by 50 basis points year over year to 28.2%.Total expenses of $717.1 million decreased by 30.9% year over year but were higher than the estimated $699.1 million. The year-over-year decrease was due to a legal settlements expense recognized in the prior-year quarter and lower transaction, legal, and other costs.At the end of the third quarter, Acadia Healthcare had cash and cash equivalents of $82.1 million, which decreased by 17.9% from the 2023-end level. It had a leftover capacity of $321.5 million under its $600 million revolving credit facility. Total assets of $5.9 billion increased by 9.5% from the 2023-end figure. Long-term debt amounted to $1.8 billion, increasing by 34.4% from the December 31, 2023, level. The current portion of long-term debt was $71.7 million. Total equity of $3 billion increased by 9% from the 2023-end level, and the net leverage ratio was around 2.5X at the end of the third quarter.Net cash provided by operations totaled $13 million in the first nine months of 2024, compared to $346 million in the prior-year comparable period.

Acadia Healthcare's Expansion and Future Projections

In the third quarter, Acadia Healthcare added 15 beds to its existing facilities and inaugurated one acute care hospital in Madison, WI. Revenues are now projected to be between $3.15 billion and $3.165 billion, compared to the earlier guided range of $3.18-$3.225 billion. The mid-point of the updated outlook indicates an improvement of 7.8% from the 2023 figure.Adjusted EBITDA is estimated to be in the range of $725-$735 million, compared to the previous guidance of $735-$765 million. The mid-point of the revised outlook indicates 7.7% growth from the 2023 figure.Adjusted earnings per share (EPS) are predicted to be between $3.35 and $3.45, compared to the earlier guided range of $3.45 and $3.65. Interest expenses are still estimated to be within the band of $110-$120 million, depreciation and amortization expenses are anticipated to be in the $145-$155 million range, and the tax rate is expected to be in the range of 24.5-25.5%. Stock compensation expenses are still expected to be between $40 million and $45 million. Operating cash flows are forecasted to be in the range of $525-$550 million, and expansion capital expenditure is anticipated to be between $550 million and $595 million. Maintenance and IT capital expenditures are expected to be in the range of $95-$105 million.Management still plans to add more than 400 beds to existing facilities in 2024 and aims to inaugurate a maximum of 14 comprehensive treatment centers. ACHC anticipates opening three inpatient facilities in the fourth quarter of 2024, including two new joint venture facilities.In the past month, investors have witnessed a downward trend in fresh estimates. The consensus estimate has shifted by -13.18% due to these changes. At present, Acadia Healthcare has a subpar Growth Score of D and a grade of C on the value side, placing it in the middle 20% for this investment strategy. Overall, the stock has an aggregate VGM Score of D. If you are not focused on a specific strategy, this score is the one you should be interested in. Estimates for the stock have been broadly trending downward, and the magnitude of these revisions indicates a downward shift. It is no surprise that Acadia Healthcare has a Zacks Rank #5 (Strong Sell), and we expect a below-average return from the stock in the next few months.If you want the latest recommendations from Zacks Investment Research, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report.Acadia Healthcare Company, Inc. (ACHC) : Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment Research

In Henderson, a crew is set to repair edges on FM 13 between SH 42 and Loop 571. This will lead to lane closures with flaggers controlling traffic. Simultaneously, another crew will be milling asphalt on SH 42 from SH 323 to FM 13, also resulting in lane closures and flaggers in charge.

Construction Projects in Rusk County

US 84 – FM 225 East to CR 3155: This project involves reconstructing US 84, including extended structures, a hot mix asphalt surface, new signs, and striping. Crews will be extending cross culverts, and motorists should expect delays. The contractor is Drewery Construction Company, and the cost is $12.8 Million with an anticipated completion date of November 2025.FM 3231 – Subgrade and Seal coat: Reconstructing FM 3231 completely, this project includes widening and re-laying subgrade, flex base material, and seal coat. Driveway culverts will be upgraded along with new signs and striping. The contractor is Lone Star Equipment, with a cost of $15.9 Million and an anticipated completion date of January 2025. There will be lane closures with flaggers and a pilot car controlling traffic as the base material is processed in the main lanes.SH 315: From US 259 to the Panola County line, Madden Construction is working on this project with a cost of $13.5 Million and an anticipated completion date of October 2024.

Details of Henderson Maintenance

The maintenance work in Henderson focuses on widening pavement edges and creating a four-foot space between traffic lanes for safety. A passing lane will also be added in each direction. The entire surface will be milled, and new hot mix will be placed. Additionally, some driveway pipes, metal beam guard fence, and striping will be replaced. No work is scheduled this week.

FM 2658 Construction

Reconstructing FM 2658 completely from CR 344 to FM 1251, this project includes a new guard fence, treating subgrade, base material, seal coat, and striping. The contractor is Highway 19 Construction, with a cost of $9.6 Million and an anticipated completion date of July 2025. The south end of the project will see the milling off of old asphalt and mixing of subgrade. It will be a one-lane setup with flaggers and a pilot car controlling traffic.

US 79 Rehabilitation

Rehabilitating US 79 from the Cherokee County line to 1.3 miles east of SH 42, this project includes pavement repair, seal coat, asphalt surface, driveway culverts, and pavement markings. This week, the contractor, Reynolds and Kay, LTD, is scheduled to clear the right of way, and motorists should expect delays with flaggers controlling traffic.

US 79 N Repair

Repairing slope failure in the TxDOT right of way from CR 344 to CR 333, this project involves excavating the site and placing a new embankment. This week, Garrett Shields Construction will be placing the new embankment, and most of the work will be off the roadway. Motorists should expect shoulder closures and trucks entering the highway.