Glenview Now Above 13% of Health Management Associates

Page 1 of 2

GLENVIEW CAPITALA filing with the SEC has disclosed that Glenview Capital now owns close to 34 million shares of Health Management Associates, Inc. (NYSE:HMA), a $2.3 billion market cap hospital operator. This gives the fund, which is managed by former Omega Advisors trader Larry Robbins, over 13% of the outstanding shares of the stock. According to its 13F for the third quarter of 2012, Glenview had owned about 26 million shares and this in turn had been up 47% from three months earlier; the fund was overweight the healthcare sector at the end of September. See the full list of Glenview’s stock picks.

In the third quarter of the year, net revenue was up 18% compared to the same period in 2011. This is roughly the same growth rate Health Management Associates, Inc. had been experiencing in the first half of the year. However, costs have also been up strongly and so net income has been down, though the rate of decline was low last quarter. At the current market price the trailing P/E is 16, which is moderately low but should be accompanied by at least modest growth or strong prospects for improvement. Clearly Glenview is in that camp, and it’s also notable that in mid-December a company insider bought 10,000 shares at an average price of $7.76 per share (read more about the insider purchase). We track insider purchases because they indicate that an insider is confident enough in the company to ignore the benefits of diversification; studies show that stocks bought the insiders beat the market on average (though not always) (learn more about studies on insider trading).

Analyst consensus is also bullish, with consensus for 2013 being 89 cents of earnings per share; this would imply a forward P/E of 10. Glenview was by far the largest hedge fund holder of Health Management Associates, Inc. at the end of last quarter in our database of 13F filings, though Carlson Capital and billionaire David Shaw’s D.E. Shaw were buying the stock.

Page 1 of 2
blog comments powered by Disqus
Insider Monkey Headlines
Insider Monkey Small Cap Strategy
Insider Monkey Small Cap Strategy

Insider Monkey beat the market by 52 percentage points in 24 months Click to see monthly returns in table format!

Lists

The Top 10 Gold Producing Countries in the World

The 10 Tallest Buildings in the World

The 10 Richest Stand Up Comedians in the World

The 10 Fattest Countries in the World

The 5 Best Summer Jobs for Teens

The 10 Most Religious Countries in the World Keeping the Faith

The 10 Most Educated Countries in the World

The 10 Most Popular Cell Phones in the World

The 10 Drunkest Countries in the World

The 10 Most Expensive Private Schools in the World

The 10 Smallest Countries in the World

Walking Dead Season 5 Spoilers You’ll Wish You Didn’t Know

The 10 Poorest Countries in the World

The 10 Greenest Countries in the World

The Top 10 Countries with the Highest Population in the World

The 10 Most Visited Countries in the World

The Top 10 Star Wars Characters in the Iconic Series

The 10 Most Expensive Android Phones in the World

5 Reasons Why The Illuminati Is Real and a Threat to Society

The 6 Scariest Halloween Costumes Ever Screamed At

The 4 Biggest Hedge Fund Managers in the World Today

The 15 Most Densely Populated Countries in the World

The 10 Biggest Tea Drinking Countries in the World

Top 6 Ways to Improve Your Checkout Process and Close Sales

The 5 Most Profitable Online Businesses You Can Start Today

The 20 Most Profitable Hospitals in the US

The 5 Most Profitable Home Businesses to Start

The 7 Teams that Will Win the Stanley Cup in 2015

The Top 10 Most Expensive Digital Cameras to Snap Stunning Shots With

The 10 Highest Quality Fast Food Restaurants In America Today

The 8 Best Halloween Decorating Ideas to Spook Up Your House

10 Marvel Women that Should Get a Movie Right Now

The 20 Best Remixes of Popular Songs that Will Make You Forget the Originals

7 Most Expensive Cities in the World

5 Least Expensive Cities in the World

10 Celebrities Who Believe In Scientology

10 High Margin Food Products to Build a Business Around

The 10 Most Expensive Clothing Stores in the United States to Get Decked Out At

The 5 Biggest Kickstarter Scams That Swindled Backers’ Donations

The 10 Most Expensive Boarding Schools In the World

50 Crazy Facts About Japan You Won’t Believe

Top 10 Least Expensive Hybrid Cars to Save the Planet With

The 10 Biggest ‘Gate’ Controversies in History

The 10 States with the Highest Nursing Shortages Leaving Their Hospitals Depleted

The 10 Best Value Investment Blogs that Every Investor Must Read

The 6 Cheapest Boarding Schools in Europe 2015

The 5 Most Expensive Cars To Insure in the World

The 10 Most Common Genetically Modified Foods

10 Self-Made Billionaires Who Came From Nothing

The 10 Most Expensive Cities to Live in North America

Subscribe

Enter your email:

Delivered by FeedBurner

X

Thanks! An email with instructions is sent to !

Your email already exists in our database. Click here to go to your subscriptions

Insider Monkey returned 47.6% in its first year! Wondering How?

Download a complete edition of our newsletter for free!