Tenet Healthcare (NYSE:THC) Stock Price Target Raised at Leerink Partners

Key Points

• Leerink Partners raised Tenet Healthcare’s price target to $342 from $309 and maintained an “outperform” rating, implying approximately 27% upside from the reported share price.
• Analyst sentiment remains favorable, with 18 Buy ratings and three Holds; the consensus rating is “Moderate Buy” with an average price target of $285.89.
• Tenet reported quarterly EPS of $6.64, beating estimates of $4.68, while revenue reached $6.28 billion versus expectations of $5.49 billion. Shares traded down 1.5% to $269.06 despite the earnings outperformance.

Tenet Healthcare (NYSE:THC - Get Free Report) had its target price upped by equities research analysts at Leerink Partners from $309.00 to $342.00 in a research note issued to investors on Monday, Benzinga reports. The brokerage currently has an "outperform" rating on the stock. Leerink Partners's target price indicates a potential upside of 27.11% from the company's current price.

Several other equities research analysts also recently issued reports on the stock. TD Cowen increased their price objective on shares of Tenet Healthcare from $233.00 to $263.00 and gave the stock a "buy" rating in a research report on Monday, July 27th. The Goldman Sachs Group reaffirmed a "buy" rating and issued a $305.00 price objective on shares of Tenet Healthcare in a research report on Tuesday, July 28th. Mizuho set a $305.00 target price on shares of Tenet Healthcare in a research note on Monday. Stephens reiterated an "overweight" rating and set a $285.00 target price on shares of Tenet Healthcare in a report on Monday, July 27th. Finally, Wall Street Zen upgraded Tenet Healthcare from a "buy" rating to a "strong-buy" rating in a research note on Saturday, October 17th. Eighteen investment analysts have rated the stock with a Buy rating and three have assigned a Hold rating to the company. Based on data from MarketBeat.com, the company has a consensus rating of "Moderate Buy" and an average price target of $285.89.

Tenet Healthcare Stock Down 1.5%

Shares of NYSE THC traded down $4.19 during mid-day trading on Monday, reaching $269.06. 698,544 shares of the company's stock were exchanged, compared to its average volume of 1,117,267. Tenet Healthcare has a twelve month low of $157.58 and a twelve month high of $283.05. The company has a current ratio of 1.58, a quick ratio of 1.52 and a debt-to-equity ratio of 1.76. The firm has a market capitalization of $21.41 billion, a price-to-earnings ratio of 7.80, a PEG ratio of 1.03 and a beta of 1.20. The business has a fifty day simple moving average of $264.85 and a 200 day simple moving average of $220.34.

Tenet Healthcare (NYSE:THC - Get Free Report) last issued its quarterly earnings data on Thursday, October 29th. The company reported $6.64 earnings per share (EPS) for the quarter, beating the consensus estimate of $4.68 by $1.96. The business had revenue of $6.28 billion during the quarter, compared to analyst estimates of $5.49 billion. Tenet Healthcare had a return on equity of 28.22% and a net margin of 13.09%. Tenet Healthcare's quarterly revenue was up 6.5% compared to the same quarter last year. During the same period in the previous year, the firm earned $3.70 EPS. As a group, equities analysts expect that Tenet Healthcare will post 21.98 EPS for the current fiscal year.

Insider Activity

In other news, CEO Saumya Sutaria sold 50,000 shares of the company's stock in a transaction that occurred on Monday, August 24th. The stock was sold at an average price of $278.71, for a total transaction of $13,935,500.00. Following the sale, the chief executive officer owned 483,564 shares in the company, valued at $134,774,122.44. This represents a 9.37% decrease in their position. The sale was disclosed in a document filed with the SEC, which is available at this link. Also, Director Tammy Romo sold 4,922 shares of the stock in a transaction that occurred on Thursday, August 6th. The shares were sold at an average price of $264.15, for a total value of $1,300,146.30. Following the completion of the sale, the director directly owned 30,784 shares of the company's stock, valued at approximately $8,131,593.60. The trade was a 13.78% decrease in their position. The SEC filing for this sale provides additional information. Over the last three months, insiders have sold 106,484 shares of company stock worth $28,898,063. Corporate insiders own 0.97% of the company's stock.

Institutional Inflows and Outflows

Several institutional investors have recently modified their holdings of THC. Manning & Napier Advisors LLC acquired a new position in Tenet Healthcare during the second quarter worth approximately $168,761,000. Bank of New York Mellon Corp acquired a new position in shares of Tenet Healthcare during the 2nd quarter worth approximately $106,342,000. Hsbc Holdings PLC raised its stake in Tenet Healthcare by 3,478.7% in the 4th quarter. Hsbc Holdings PLC now owns 266,400 shares of the company's stock valued at $53,269,000 after acquiring an additional 258,956 shares during the period. Arrowstreet Capital Limited Partnership raised its stake in Tenet Healthcare by 57.4% in the 1st quarter. Arrowstreet Capital Limited Partnership now owns 671,700 shares of the company's stock valued at $126,757,000 after acquiring an additional 244,901 shares during the period. Finally, Healthcare of Ontario Pension Plan Trust Fund lifted its holdings in Tenet Healthcare by 535.9% during the 1st quarter. Healthcare of Ontario Pension Plan Trust Fund now owns 127,677 shares of the company's stock valued at $24,094,000 after purchasing an additional 107,600 shares during the last quarter. 95.44% of the stock is currently owned by institutional investors and hedge funds.

About Tenet Healthcare

Tenet Healthcare Corp. NYSE: THC is a diversified healthcare services company headquartered in Dallas, Texas. Through its hospital operations and outpatient platforms, the company provides a range of medical services to patients across the United States.

Tenet operates acute care and specialty hospitals, ambulatory surgery centers, imaging facilities and other outpatient care sites. Its United Surgical Partners International subsidiary is a major provider of ambulatory surgery services and partners with physicians and health systems.

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