Tenet Healthcare (NYSE:THC) Rating Lowered to Hold at Zacks Research

Key Points

• Zacks Research downgraded Tenet Healthcare from “strong buy” to “hold,” though the broader analyst consensus remains “Moderate Buy,” with 18 buy ratings and an average price target of $277.25.
• Tenet shares opened at $256.06, down 0.6%, after trading between $157.58 and $283.05 over the past year. The company reported quarterly EPS of $6.12, beating estimates of $4.26, while revenue rose 6.8% year over year to $6.04 billion.
• Insiders sold 131,199 shares worth approximately $35.1 million over the past 90 days, while institutional investors own 95.44% of Tenet’s outstanding stock.

Tenet Healthcare (NYSE:THC - Get Free Report) was downgraded by research analysts at Zacks Research from a "strong-buy" rating to a "hold" rating in a research note issued on Tuesday, Zacks reports.

Several other equities research analysts have also commented on the stock. Robert W. Baird boosted their price target on shares of Tenet Healthcare from $210.00 to $280.00 and gave the stock a "neutral" rating in a report on Tuesday, July 28th. Wells Fargo & Company boosted their target price on shares of Tenet Healthcare from $231.00 to $281.00 and gave the stock an "overweight" rating in a research note on Monday, August 3rd. Barclays upped their price target on shares of Tenet Healthcare from $240.00 to $271.00 and gave the stock an "overweight" rating in a research report on Friday, July 24th. Guggenheim boosted their price objective on Tenet Healthcare from $242.00 to $283.00 and gave the stock a "buy" rating in a research note on Tuesday, July 28th. Finally, Royal Bank Of Canada raised their target price on Tenet Healthcare from $236.00 to $283.00 and gave the company an "outperform" rating in a research report on Monday, July 27th. Eighteen equities research analysts have rated the stock with a Buy rating and three have assigned a Hold rating to the company. According to MarketBeat, the company presently has a consensus rating of "Moderate Buy" and an average target price of $277.25.

Tenet Healthcare Stock Down 0.6%

THC stock opened at $256.06 on Tuesday. The company has a quick ratio of 1.35, a current ratio of 1.41 and a debt-to-equity ratio of 2.00. Tenet Healthcare has a 52 week low of $157.58 and a 52 week high of $283.05. The stock has a market capitalization of $20.62 billion, a PE ratio of 9.88, a price-to-earnings-growth ratio of 0.98 and a beta of 1.23. The firm has a 50 day moving average of $260.82 and a 200 day moving average of $214.24.

Tenet Healthcare (NYSE:THC - Get Free Report) last posted its quarterly earnings results on Thursday, July 23rd. The company reported $6.12 earnings per share for the quarter, beating the consensus estimate of $4.26 by $1.86. The business had revenue of $6.04 billion for the quarter, compared to the consensus estimate of $5.43 billion. Tenet Healthcare had a return on equity of 26.76% and a net margin of 10.27%.The company's quarterly revenue was up 6.8% compared to the same quarter last year. During the same quarter in the previous year, the business earned $4.02 EPS. Tenet Healthcare has set its FY 2026 guidance at 20.300-21.690 EPS. Sell-side analysts forecast that Tenet Healthcare will post 21.04 earnings per share for the current year.

Insider Transactions at Tenet Healthcare

In related news, EVP Paola Arbour sold 10,878 shares of the business's stock in a transaction on Monday, July 27th. The stock was sold at an average price of $243.90, for a total transaction of $2,653,144.20. Following the completion of the transaction, the executive vice president directly owned 18,413 shares of the company's stock, valued at $4,490,930.70. The trade was a 37.14% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available through this hyperlink. Also, Director Richard Mark sold 10,000 shares of the stock in a transaction dated Thursday, September 10th. The shares were sold at an average price of $263.42, for a total value of $2,634,200.00. Following the completion of the sale, the director directly owned 25,121 shares in the company, valued at $6,617,373.82. This represents a 28.47% decrease in their position. The disclosure for this sale is available in the SEC filing. Insiders sold a total of 131,199 shares of company stock valued at $35,065,587 in the last 90 days. Insiders own 0.97% of the company's stock.

Institutional Investors Weigh In On Tenet Healthcare

Institutional investors and hedge funds have recently bought and sold shares of the stock. Trust Co. of Vermont acquired a new position in shares of Tenet Healthcare in the second quarter valued at approximately $37,000. OP Asset Management Ltd purchased a new position in Tenet Healthcare in the 1st quarter valued at $49,000. Compass Financial Management LLC acquired a new position in Tenet Healthcare in the 2nd quarter valued at $57,000. William B. Walkup & Associates Inc. raised its position in Tenet Healthcare by 88.7% during the 4th quarter. William B. Walkup & Associates Inc. now owns 302 shares of the company's stock worth $60,000 after buying an additional 142 shares during the last quarter. Finally, Capital Advisors Ltd. LLC boosted its holdings in shares of Tenet Healthcare by 11,933.3% in the first quarter. Capital Advisors Ltd. LLC now owns 361 shares of the company's stock valued at $68,000 after acquiring an additional 358 shares in the last quarter. 95.44% of the stock is owned by hedge funds and other institutional investors.

About Tenet Healthcare

Tenet Healthcare Corporation is a Dallas-based healthcare services company that operates hospitals, outpatient facilities and other healthcare businesses across the United States. Its operations include acute care hospitals, specialty hospitals, ambulatory surgery centers and related outpatient services.

Through its United Surgical Partners International subsidiary, Tenet is one of the major operators and developers of ambulatory surgery centers in the United States. These facilities provide same-day surgical procedures and other outpatient care across a range of medical specialties.

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