Analyst Says Buy the Dip in Health Management (HMA) Shares; General Counsel Resignation Not Related to Litigation

Susquehanna analyst A.J. Rice believes the recent selloff in shares of Health Management Associates (NYSE: HMA) presents a strategic buying opportunity for investors. The stock fell more than 7 percent on Monday and is down another 22-plus percent Tuesday afternoon following news the company's general counsel resigned.

Rice states the resignation of the general counsel is not directly correlated to the two pending federal subpoenas or former employee lawsuit. According to Health Management Associates, the resignation of Timothy Parry was a personal decision and not related to the litigation. The company also confirmed compliance activities are not reported to the general counsel, but actually go directly to an independent committee of directors.

Rice highlights the company continues to post solid growth despite government reimbursement challenges.

Susquehanna currently has a Positive rating and $11 price target on shares of Health Management Associates.

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