The Case for and Against HCP, Inc. (HCP)

HCP, Inc. (HCP) is an interesting player in the Financial space, with a focus on REIT – Healthcare Facilities. The stock has been active on the tape, currently trading at $29.04, down from yesterday’s close by -0.21%. Given the stock’s recent action, it seemed like a good time to take a closer look at the company’s recent data.

Fundamental Analysis

Does this stock stack up well when compared to its peers in the industry space? Let’s take a look. HCP, Inc. (HCP) currently trades with a market capitalization of $13.63 Billion.

The balance sheet health of any company plays a key role in its ability to meet its obligations and maintain the faith of its investment base. For HCP, the company currently has $453.45 Million of cash on the books, which is offset by $ current liabilities. You can get a sense of how sustainable that is by a levered free cash flow of $903.52 Million over the past twelve months. Generally speaking, earnings are expected to grow in coming quarters. Analysts are forecasting earnings of $0.16 on a per share basis this quarter. Perhaps, that suggests something about why 48.52% of the outstanding share supply is held by institutional investors.

Technical Analysis

We’ve taken a serious look at this stock from a fundamental perspective, but the tale of the tape may offer more hints about what lies under the surface. Looking at the stock’s movement on the chart, HCP, Inc. recorded a 52-week high of $36.14. It is now trading 7.1% off that level. The stock is trading $30.20 its 50-day moving average by 1.16%. The stock carved out a 52-week low down at $27.61.

In recent action, HCP, Inc. (HCP) has made a move of +0.31% over the past month, which has come on Strong relative transaction volume. Over the trailing year, the stock is underperforming the S&P 500 by 37.98, and it’s gotten there by action that has been less volatile on a day-to-day basis than most other stocks on the exchange. In terms of the mechanics underlying that movement, traders will want to note that the stock is trading on a float of 2.40% with $467.80 Million sitting short, betting on future declines. That suggests something of the likelihood of a short squeeze in shares of HCP.

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