Surgery Partners (NASDAQ:SGRY) Stock Bumped Down to Neutral by UBS Group

Key Points

• UBS Group downgraded Surgery Partners to Neutral from Buy, while raising its price target to $23.50 from $21.00. The target implies only about 1.1% upside from the stock’s $23.24 trading price.
• Surgery Partners shares have rallied near their 52-week high following HealthSpan Partners’ agreement to acquire the company for $23.50 per share. The limited remaining upside has prompted other analysts, including StoneX and JPMorgan, to maintain or move to neutral ratings.
• The company’s latest quarterly results exceeded expectations, with adjusted earnings of $0.10 per share versus a $0.06 consensus estimate and revenue of $848.9 million. Analysts collectively rate the stock Hold, with a consensus price target of $20.14.

Surgery Partners (NASDAQ:SGRY - Get Free Report) was downgraded by equities research analysts at UBS Group from a "buy" rating to a "neutral" rating in a research note issued on Wednesday, Benzinga reports. They presently have a $23.50 target price on the stock, up from their previous target price of $21.00. UBS Group's price target points to a potential upside of 1.12% from the stock's current price.

Several other analysts have also commented on SGRY. JPMorgan Chase & Co. raised their target price on Surgery Partners from $14.00 to $15.00 and gave the stock a "neutral" rating in a report on Monday, September 14th. Weiss Ratings raised Surgery Partners from a "sell (e+)" rating to a "sell (d-)" rating in a report on Friday, October 16th. TD Cowen reaffirmed a "buy" rating and set a $19.00 price objective on shares of Surgery Partners in a research note on Friday, September 18th. Raymond James Financial set a $23.50 target price on shares of Surgery Partners in a report on Monday. Finally, Benchmark reissued a "buy" rating on shares of Surgery Partners in a report on Tuesday, August 11th. Four equities research analysts have rated the stock with a Buy rating, seven have issued a Hold rating and one has assigned a Sell rating to the stock. According to data from MarketBeat.com, Surgery Partners currently has a consensus rating of "Hold" and a consensus price target of $20.14.

Surgery Partners Stock Performance

NASDAQ SGRY traded down $0.12 on Wednesday, reaching $23.24. 3,105,467 shares of the company's stock traded hands, compared to its average volume of 2,073,740. The firm has a market cap of $3.04 billion, a price-to-earnings ratio of -33.20, a P/E/G ratio of 4.87 and a beta of 1.90. The stock has a 50 day moving average price of $14.57 and a 200-day moving average price of $14.53. Surgery Partners has a fifty-two week low of $11.41 and a fifty-two week high of $23.44. The company has a debt-to-equity ratio of 1.18, a quick ratio of 1.78 and a current ratio of 1.95.

Surgery Partners (NASDAQ:SGRY - Get Free Report) last announced its quarterly earnings results on Monday, August 10th. The company reported $0.10 earnings per share for the quarter, topping the consensus estimate of $0.06 by $0.04. The company had revenue of $848.90 million for the quarter, compared to the consensus estimate of $830.03 million. Surgery Partners had a positive return on equity of 0.88% and a negative net margin of 2.63%. The firm's revenue for the quarter was up 2.7% compared to the same quarter last year. During the same period last year, the firm earned $0.17 EPS. Equities research analysts predict that Surgery Partners will post 0.25 EPS for the current fiscal year.

Insider Buying and Selling at Surgery Partners

In other Surgery Partners news, Director Teresa DeLuca bought 10,000 shares of the firm's stock in a transaction dated Tuesday, August 18th. The shares were purchased at an average price of $14.35 per share, for a total transaction of $143,500.00. Following the transaction, the director directly owned 66,843 shares of the company's stock, valued at approximately $959,197.05. This represents a 17.59% increase in their position. The transaction was disclosed in a filing with the SEC, which is available through the SEC website. 2.00% of the stock is currently owned by insiders.

Hedge Funds Weigh In On Surgery Partners

Large investors have recently added to or reduced their stakes in the stock. Public Employees Retirement System of Ohio acquired a new stake in shares of Surgery Partners in the second quarter valued at about $38,000. PNC Financial Services Group Inc. increased its stake in shares of Surgery Partners by 239.6% during the first quarter. PNC Financial Services Group Inc. now owns 2,907 shares of the company's stock worth $35,000 after purchasing an additional 2,051 shares in the last quarter. Fifth Third Bancorp raised its position in shares of Surgery Partners by 5,324.0% during the 1st quarter. Fifth Third Bancorp now owns 4,068 shares of the company's stock worth $48,000 after purchasing an additional 3,993 shares during the last quarter. Empowered Funds LLC acquired a new position in shares of Surgery Partners during the 2nd quarter worth about $216,000. Finally, State of Wyoming acquired a new position in shares of Surgery Partners during the 2nd quarter worth about $262,000.

Trending Headlines about Surgery Partners

Here are the key news stories impacting Surgery Partners this week:

• Positive Sentiment: HealthSpan Partners’ agreement to take Surgery Partners private is the primary catalyst, following a nearly 48% rally after the deal was announced. The acquisition provides shareholders with a defined $23.50-per-share exit value. Surgery Partners To Be Acquired by HealthSpan Partners
• Positive Sentiment: The transaction is expected to establish a larger outpatient surgical-care platform, potentially supporting strategic value for the buyer and helping explain the premium investors initially placed on SGRY shares. Surgery Partners Enters Acquisition Agreement with HealthSpan Partners
• Neutral Sentiment: StoneX downgraded Surgery Partners from “strong buy” to “hold” and previously moved its rating from “buy” to “hold.” The change reflects the limited upside between the current trading level and the $23.50 offer price rather than a new deterioration in operating results. StoneX Downgrades Surgery Partners
• Negative Sentiment: Several law firms have announced investigations into the proposed sale, including claims focused on whether shareholders are receiving adequate consideration. These announcements could add headline and execution risk, although they do not change the announced terms. Shareholder Investigation of Surgery Partners

Surgery Partners Company Profile

Surgery Partners, Inc is a U.S.-based healthcare services company that operates and manages ambulatory surgery centers and surgical hospitals. The company works with physicians, health systems and other healthcare providers to deliver outpatient surgical care in facilities designed for same-day procedures.

Its facilities provide surgical services across specialties such as orthopedics, pain management, ophthalmology, gastroenterology, urology, gynecology and general surgery. Surgery Partners also supports its operations with clinical, administrative and revenue-cycle services intended to help physicians and facility partners manage patient care and practice operations.

Founded in 2004 and headquartered in Brentwood, Tennessee, Surgery Partners has expanded its platform through acquisitions, joint ventures and other partnerships.

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