Surgery Partners (NASDAQ:SGRY) Given New $25.00 Price Target at TD Cowen

Key Points

• TD Cowen raised its price target on Surgery Partners from $23.50 to $25.00, maintaining a Hold rating; the new target implied 5.71% downside from the prior close.
• Analyst sentiment was broadly cautious: the consensus rating was Hold, with an average price target of $20.70.
• Surgery Partners reported quarterly adjusted EPS of $0.16, above the $0.11 estimate, while revenue of $815.3 million missed forecasts and declined 0.8% year over year.

Surgery Partners (NASDAQ:SGRY - Get Free Report) had its target price lifted by investment analysts at TD Cowen from $23.50 to $25.00 in a research note issued to investors on Wednesday, Benzinga reports. The firm currently has a "hold" rating on the stock. TD Cowen's target price would suggest a potential downside of 5.71% from the company's previous close.

Several other research analysts have also issued reports on SGRY. Zacks Research lowered Surgery Partners from a "strong-buy" rating to a "hold" rating in a research report on Monday, August 10th. UBS Group downgraded shares of Surgery Partners from a "buy" rating to a "hold" rating and boosted their price target for the stock from $21.00 to $23.50 in a research report on Wednesday, October 28th. Benchmark reaffirmed a "buy" rating on shares of Surgery Partners in a research note on Tuesday, August 11th. JPMorgan Chase & Co. increased their price objective on shares of Surgery Partners from $14.00 to $15.00 and gave the stock a "neutral" rating in a research report on Monday, September 14th. Finally, Weiss Ratings raised shares of Surgery Partners from a "sell (e+)" rating to a "sell (d-)" rating in a research note on Friday, October 16th. Two investment analysts have rated the stock with a Buy rating, nine have issued a Hold rating and one has issued a Sell rating to the stock. Based on data from MarketBeat.com, the stock currently has a consensus rating of "Hold" and an average target price of $20.70.

Surgery Partners Price Performance

Shares of SGRY stock traded down $0.21 on Wednesday, hitting $26.52. 1,165,282 shares of the company's stock were exchanged, compared to its average volume of 2,246,990. Surgery Partners has a 12 month low of $11.41 and a 12 month high of $27.23. The company has a debt-to-equity ratio of 1.18, a current ratio of 1.95 and a quick ratio of 1.78. The company has a 50 day moving average of $16.55 and a 200 day moving average of $14.94. The stock has a market cap of $3.47 billion, a P/E ratio of -39.00 and a beta of 1.85.

Surgery Partners (NASDAQ:SGRY - Get Free Report) last announced its quarterly earnings results on Monday, November 9th. The company reported $0.16 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.11 by $0.05. The company had revenue of $815.30 million for the quarter, compared to analyst estimates of $820.96 million. Surgery Partners had a negative net margin of 2.59% and a positive return on equity of 0.96%. The firm's revenue was down .8% on a year-over-year basis. During the same period in the previous year, the firm posted $0.13 EPS. On average, equities research analysts predict that Surgery Partners will post 0.07 EPS for the current year.

Insider Activity

In related news, Director Teresa DeLuca acquired 10,000 shares of the stock in a transaction dated Tuesday, August 18th. The stock was bought at an average price of $14.35 per share, for a total transaction of $143,500.00. Following the purchase, the director directly owned 66,843 shares of the company's stock, valued at $959,197.05. The trade was a 17.59% increase in their position. The acquisition was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink. Insiders own 2.00% of the company's stock.

Institutional Investors Weigh In On Surgery Partners

A number of large investors have recently bought and sold shares of the stock. Jupiter Topco LLC acquired a new stake in shares of Surgery Partners in the 2nd quarter valued at about $233,220,000. Pentwater Capital Management LP bought a new position in Surgery Partners in the second quarter worth approximately $195,384,000. BlackRock Inc. bought a new position in Surgery Partners in the second quarter worth approximately $104,857,000. Dimensional Fund Advisors LP boosted its holdings in Surgery Partners by 7.9% in the first quarter. Dimensional Fund Advisors LP now owns 5,296,411 shares of the company's stock worth $63,131,000 after acquiring an additional 389,831 shares in the last quarter. Finally, Hsbc Holdings PLC acquired a new stake in Surgery Partners in the second quarter valued at approximately $48,912,000.

Key Stories Impacting Surgery Partners

Investors following SGRY have been watching these stories:

• Positive Sentiment: Surgery Partners reported third-quarter adjusted EPS of $0.16, above the roughly $0.11 analyst consensus. Its amended merger terms with HealthSpan raised the reported buyout price to $25 per share, and RBC said a revised competing offer could be possible—fueling expectations of additional deal value. Article: Surgery Partners secures improved merger terms
• Negative Sentiment: Mizuho downgraded SGRY from “outperform” to “neutral,” despite raising its target to $25; that target is below the recently reported trading price. RBC also rates the shares “sector perform” with a $25 target, reinforcing limited perceived upside absent a higher offer. Article: Mizuho rating information
• Negative Sentiment: Quarterly revenue of $815.3 million fell slightly year over year and missed estimates. A separate earnings report cited a $21.1 million net loss attributable to common shareholders and lower operating profit, tempering the adjusted-EPS beat. Law firms have also announced investigations into the proposed buyout, adding deal-related uncertainty. Article: Q3 revenue misses and net loss widens

About Surgery Partners

Surgery Partners, Inc. is a U.S. healthcare services company that owns and operates ambulatory surgery centers and surgical hospitals. Its facilities provide outpatient and inpatient surgical care across a range of specialties. The company's services include surgical procedures and related care delivered in partnership with physicians and healthcare professionals. Its network serves patients in multiple states across the United States. Founded in 2004, Surgery Partners has expanded its network through acquisitions and partnerships with physicians and health systems.

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