HCP, Inc. (NYSE: HCP)
HCP, Inc. (HCP), an independent hybrid real estate trust yesterday before the opening bell announced their fourth quarter and full year 2015 financial results and guidance numbers for 2016. HCP reported a profit of $374.9 million or $0.80 per share which beat analyst expectations of $0.78 per share. HCP reported revenues of $668 million which is up 10.6% year over year and beat analyst expectations of $638 million. However the big miss came on the FFO (Funds from Operations) estimate which was $2.74 to $2.80 per share which fell short of analyst expectations of $3.17 per share. Despite the positive fourth quarter results HCP gapped down 5% as investors seem to be more concerned with the disappointing forward guidance numbers.
HCP Technical Analysis
HCP gapped down in price yesterday to $32.13, down from the prior day’s close of $33.99, which is a 5% decrease in price. Taking a look at the daily chart we can see that the last time HCP traded below this price level you have to go all the way back to August 7th, 2011 when it traded at lows of $28.76. Taking a closer look at the daily chart we can see that HCP has been on an overall decline dating back to January 5th when it traded at $39.06. HCP has gapped down and reached new 52 week lows on the news of the weak forward guidance numbers. HCP has a float of 463.64 million shares and is trading almost 3 times the normal daily trading volume. HCP opened up right at the pre market lows. For trading purposes, my entry short would have been $32.00 looking for a run down to $30. My stop loss would have been $32.25, fearing anything above that and the stock would start to fill in the gap down.
Company Profile
HCP, Inc. (HCP), incorporated on March 21, 1985, is a self-administered real estate investment trust (REIT). The Company invests in real estate serving the healthcare industry in the United States. Its portfolio consists of investments in various healthcare segments: senior housing, post-acute/skilled nursing, life science, medical office and hospital. Its portfolio includes owned portfolio, unconsolidated joint ventures, and developments and redevelopments. At December 31, 2014, its owned portfolio included 1,040 properties under lease and 68 operating properties. At December 31, 2014, the Company had interests in unconsolidated joint ventures representing 88 properties primarily in its senior housing, life science and medical office segments. It has assets under development, redevelopment and land held for future development, which are primarily in its life science and medical office segments. At December 31, 2014, the properties owned by the Company in medical office and senior housing segments, which were under development or redevelopment include Pacific Corporate Park, Memorial Hermann, Sky Ridge, Bayfront, Folsom and Deer Park. Reuters
