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Investor-owned psychiatric hospital chains increasingly operate under nonprofit brands, a strategy that has raised eyebrows among industry analysts and healthcare advocates.



Universal Health Services (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/UHS#NYSE">UHS</a>) and Acadia Healthcare Company, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/ACHC#NASDAQ">ACHC</a>) are prominent players.



STAT News&#8217; investigation <a target="_blank" href="https://www.statnews.com/2024/07/08/psychiatric-hospital-investor-owned-chains-operate-under-nonprofit-brands/" rel="noreferrer noopener">reveals</a> that a Columbus Police sergeant called for action against Mt. Carmel Behavioral Health, run by Acadia Healthcare, highlighting a series of alarming incidents at the psychiatric hospital.



The sergeant&#8217;s February letter outlines a disturbing pattern of violence, prompting concerns about patient and staff safety.



Over the past six months, the hospital has witnessed over 20 emergency calls detailing horrific incidents.



This level of violence is unprecedented, especially for an institution affiliated with the local Catholic health system.



Despite its affiliation with Mount Carmel, the hospital is managed by Acadia Healthcare, a prominent publicly traded chain known for operating psychiatric facilities amidst accusations of inadequate staffing and training.



This operational environment has raised significant concerns about patient care standards and safety protocols within Acadia&#8217;s facilities nationwide.



The sergeant&#8217;s formal <a target="_blank" href="https://www.documentcloud.org/documents/24776424-cpd-complaint-1?responsive=1&amp;title=1" rel="noreferrer noopener">complaint</a> underscores longstanding issues, citing persistent physical assaults on vulnerable patients and staff.



Despite multiple engagements with the hospital&#8217;s management, concerns remain unresolved, prompting the sergeant to escalate the matter to state and national regulatory bodies, the investigation report says.



In a <a target="_blank" href="https://x.com/TaraBannow/status/1811759286881780053" rel="noreferrer noopener">post</a> on X, Tara Bannow from STAT News said, &#8220;People who worked at Acadia &amp; UHS hospitals across the country from one another said the exact same thing: There was systematic understaffing and undertraining, and our pleas to corporate were ignored.&#8221;



She adds, &#8220;What results is environments that are dangerous for patients and staff alike&#8230;Within the past year, juries issued $1 billion in verdicts against Acadia &amp; UHS.&#8221;



Price Action: ACHC shares are up 4.83% at $68.33, and UHS stock is up 2.48% at $183.12&nbsp;at the last check on Tuesday.



Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.



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Image via Unsplash

Investor-owned psychiatric hospitals under nonprofit facades: Acadia Healthcare faces scrutiny over safety at Mt. Carmel Behavioral Health, amid rising concerns of violence and patient care standards.

UHS, Acadia Healthcare Navigate Scrutiny Amid Safety Concern Allegations At Psychiatric Hospitals, Operating As Nonprofit

Amazon.com Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AMZN#NASDAQ">AMZN</a>) saw its <a target="_blank" href="https://www.benzinga.com/news/24/07/39770529/amazon-gears-up-for-prime-day-2024-with-2t-market-cap" rel="noreferrer noopener">Prime Day sales</a> increase by about 13% in the first six hours compared to the same period last year, according to Momentum Commerce.



&#8220;Consumers continue to spend, but they do so strategically, which can benefit a sale like Prime Day,&#8221; Bloomberg <a target="_blank" href="https://www.bloomberg.com/news/articles/2024-07-16/amazon-prime-day-sales-rise-13-in-first-six-hours-of-sale?srnd=technology-vp&amp;sref=TBDibEcD" rel="noreferrer noopener">cites</a> Sky Canaves, an analyst at eMarketer Inc.



Canaves expects shoppers to prioritize smaller items like headphones and chargers over big-ticket electronics like laptops.



Adobe Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/ADBE#NASDAQ">ADBE</a>) estimates that online sales across all retailers will reach $14 billion over the two-day event, an almost 11% increase from last year.



eMarketer projects a more modest 6% growth, with U.S. online spending hitting $13.8 billion during Prime Day and Amazon&#8217;s direct sales rising by 5.5% to $8.2 billion.



According to Mike Brenner, research analyst at FBB Capital Partners, investments made during the Covid-19 pandemic have improved efficiency, Bloomberg <a target="_blank" href="https://www.bloomberg.com/news/articles/2024-07-16/amazon-s-prime-day-to-remind-wall-street-of-its-retail-dominance?srnd=technology-vp&amp;sref=TBDibEcD" rel="noreferrer noopener">reports</a>.



These improvements could lead to faster growth and better margins, shifting investor focus from revenue to overall growth and profitability.



Jefferies analysts highlighted that increased efficiencies in Amazon&#8217;s retail business could significantly boost its EBIT margins from 2.4% in 2022 to 9.9% this year.



JPMorgan analyst Doug Anmuth predicts a total gross merchandise value of $12.4 billion, a 12% increase, with $7.9 billion in total retail net sales. Of that, $5.8 billion was generated with Prime Day.



<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="750" height="650" src="https://editorial-assets.benzinga.com/wp-content/uploads/2024/07/16120605/newplot-35.png" alt="" class="wp-image-438995" srcset="https://editorial-assets.benzinga.com/wp-content/uploads/2024/07/16120605/newplot-35.png 750w,https://editorial-assets.benzinga.com/wp-content/uploads/2024/07/16120605/newplot-35-300x260.png 300w" sizes="(max-width: 750px) 100vw, 750px" /></figure>



JPMorgan expects Amazon to surpass Walmart Inc (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/WMT#NYSE">WMT</a>) as the largest U.S. retailer this year.



Price Action:&nbsp;AMZN was up 0.19% to $193.08 at the last check on Tuesday.



Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.



Photo via Shutterstock

Amazon&#39;s Prime Day sales saw a 13% increase in the first 6 hours, with shoppers prioritizing smaller items. Other retailers also expect a boost.

Amazon To Surpass Walmart This Year As Largest US Retailer: Analyst

Morgan Stanley (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/MS#NYSE">MS</a>) reported second-quarter earnings per share (EPS) of $1.82 on Tuesday. That&#8217;s up from $1.24 a year ago and beating <a href="https://www.benzinga.com/news/earnings/24/07/39793333/morgan-stanley-q2-earnings-higher-profits-as-investment-banking-activity-rebounds-on-track-to-reach" target="_blank" rel="noreferrer noopener">the consensus of $1.65</a>.



The U.S. bank reported second-quarter sales of $15.02 billion, up 11.6% year over year, beating the consensus of $14.30 billion. Sales were balanced across&nbsp;Wealth Management and Institutional Securities.



Goldman Sachs writes the revenue beat was entirely in capital markets (14.5% better than the Street). Wealth (ex DCP) and investment management revenue were weaker, the firm noted.



The analyst notes that Capital markets drove the revenue beat, but this may be partially offset by misses in wealth revenue (excluding DCP), wealth net interest income, and wealth net new assets compared to expectations. Additionally, the 3% quarter-over-quarter wealth net interest income decline raises concerns about future performance.



Goldman Sachs writes investment banking came in 21% above the Street estimates.



Goldman Sachs keeps the Buy rating, <a target="_blank" href="https://www.benzinga.com/quote/MS/analyst-ratings" rel="noreferrer noopener">with a price target of $112</a>.



JP Morgan notes robust overall investment banking performance, with equity investments at the upper end of the peer range, showing a year-over-year (YoY) increase of 7% to 21% and an average of 15%.



Fixed Income, Currencies, and Commodities (FICC) also show strength, with a 16% YoY increase compared to the US peers&#8217; average of 4% and a range of -3% to 17%.



However, wealth management net interest income decreased by 3% quarter-over-quarter (QoQ), falling short of the guidance for flat growth. The pre-tax margin of 27% aligns with JP Morgan&#8217;s estimates, limiting significant upgrade potential.



&#8220;Overall, management is showing strong cost discipline with headcount declining -1% quarter-over-quarter,&#8221; JPMorgan&#8217;s analyst notes. 



JPMorgan analyst maintains a Neutral rating for Morgan Stanley.



Price Action: Morgan Stanley shares are up 1.01% at $106.33 at last check Tuesday.



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Image: Unsplash

Morgan Stanley sales rose 11.6% to $15.02 billion; Strong capital markets performance offset weaker wealth management segment.

Morgan Stanley Capital Markets Segment Shines, Wealth Metrics Lag: Analysts Praise &#39;Strong Cost Discipline&#39;

Goldman Sachs analyst Richard Ramsden anticipates a neutral investor response to PNC Financial Services Group, Inc.&#8216;s&nbsp;(NYSE:<a class="ticker" href="https://www.benzinga.com/stock/PNC#NYSE">PNC</a>) stronger <a target="_blank" href="https://www.benzinga.com//node/39791655" rel="noreferrer noopener">results and updated FY24 guidance</a>.



Today, the bank reported a revenue increase of&nbsp;2%&nbsp;Y/Y to&nbsp;$5.411 billion, slightly missing the consensus of&nbsp;$5.412 billion, while adjusted EPS of&nbsp;$3.30&nbsp;topped&nbsp;<a target="_blank" href="https://www.benzinga.com/calendars/earnings" rel="noreferrer noopener">the consensus of&nbsp;$2.98</a>.



For FY24, PNC&nbsp;expects net interest income (NII) to decline&nbsp;4%, revenue to be down&nbsp;1%-2% (vs. consensus of roughly unchanged Y/Y), and&nbsp;average loan down less than&nbsp;1% (vs. <a target="_blank" href="https://www.benzinga.com/calendars/guidance" rel="noreferrer noopener">Street estimate of flat Y/Y)</a>.



The analyst says that the third quarter 2024 guidance for NII, fee income, and expenses also suggests a slightly lower pre-provision net revenue (PPNR) compared to consensus.



Overall, the updated FY2024 guidance (at the midpoint) suggests a 2% lower PPNR than the Street, writes the analyst.



Given the revised rate expectations (potentially 2-3 rate cuts this year), the analyst anticipates management&#8217;s comments on the assumptions driving the guidance, NII trajectory in H2 2024 and 2025, expense trends, potential for operating leverage, credit outlook, and the likelihood of ongoing reserve releases in the near term.



In particular, the analyst anticipate investor inquiries regarding the trajectory towards losses in both consumer and corporate segments, and whether there has been any recent deterioration in credit trends.



Notably, net charge-offs (NCOs) for commercial real estate (CRE) rose to 1.28%, an increase of approximately 65 basis points Q/Q, prompting management to raise the office CRE reserve ratio from 9.7% to 10.3%.



Ramsden rated PNC as Neutral <a target="_blank" href="https://www.benzinga.com/quote/PNC/analyst-ratings" rel="noreferrer noopener">with a price target of $165</a>.



Investors can gain exposure to the stock via&nbsp;IShares U.S. Regional Banks ETF&nbsp;(NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IAT#NYSE">IAT</a>) and&nbsp;Invesco Exchange-Traded Fund Trust II Invesco S&amp;P Ultra Dividend Revenue ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/RDIV#NYSE">RDIV</a>).



Price Action: PNC shares are up 4.66% at $176.89 at the last check Tuesday.



Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.



Photo via Wikimedia Commons

Analyst expects neutral investor response to PNC&#39;s results and updated guidance. PNC reported a 2% revenue increase and EPS beat.

Goldman Sachs Maintains Neutral on PNC Despite Strong Results, Cites Modest FY24 Outlook

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