Tenet Healthcare (NYSE:THC) Stock Rating Cut to Buy at Wall Street Zen

Key Points

• Wall Street Zen downgraded Tenet Healthcare from “strong buy” to “buy,” while the broader analyst consensus remains “Moderate Buy,” with 18 buy ratings and three holds and an average price target of $277.25.
• Tenet reported stronger-than-expected quarterly results, including EPS of $6.12 versus the $4.26 consensus and revenue of $6.04 billion, up 6.8% year over year.
• The stock opened at $258.37 and has gained 1.7%, but insiders sold 131,199 shares worth about $35.1 million during the last quarter; institutional investors own 95.44% of the shares.

Tenet Healthcare (NYSE:THC - Get Free Report) was downgraded by equities research analysts at Wall Street Zen from a "strong-buy" rating to a "buy" rating in a research note issued to investors on Saturday, Wall Street Zen reports.

Other analysts have also issued reports about the company. TD Cowen lifted their target price on Tenet Healthcare from $233.00 to $263.00 and gave the stock a "buy" rating in a research report on Monday, July 27th. UBS Group increased their price target on Tenet Healthcare from $288.00 to $308.00 and gave the company a "buy" rating in a report on Monday, July 27th. Truist Financial lifted their price objective on Tenet Healthcare from $270.00 to $290.00 and gave the stock a "buy" rating in a report on Tuesday, July 28th. Stephens reiterated an "overweight" rating and set a $285.00 target price on shares of Tenet Healthcare in a research note on Monday, July 27th. Finally, Raymond James Financial reissued an "outperform" rating and set a $285.00 price target on shares of Tenet Healthcare in a research report on Friday, August 14th. Eighteen investment analysts have rated the stock with a Buy rating and three have assigned a Hold rating to the company. According to data from MarketBeat, Tenet Healthcare has an average rating of "Moderate Buy" and a consensus price target of $277.25.

Tenet Healthcare Trading Up 1.7%

NYSE THC opened at $258.37 on Friday. The stock has a market cap of $20.80 billion, a P/E ratio of 9.96, a PEG ratio of 0.97 and a beta of 1.20. The company's fifty day simple moving average is $262.41 and its 200-day simple moving average is $214.73. The company has a current ratio of 1.41, a quick ratio of 1.35 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.

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

Insider Buying and Selling

In other news, EVP Paola Arbour sold 10,878 shares of the business's stock in a transaction that occurred on Monday, July 27th. The stock was sold at an average price of $243.90, for a total value of $2,653,144.20. Following the completion of the sale, the executive vice president directly owned 18,413 shares in the company, valued at approximately $4,490,930.70. The trade was a 37.14% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, Director Richard Mark sold 10,000 shares of the firm's stock in a transaction on Thursday, September 10th. The stock was sold at an average price of $263.42, for a total value of $2,634,200.00. Following the transaction, the director owned 25,121 shares in the company, valued at $6,617,373.82. This trade represents a 28.47% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. In the last quarter, insiders have sold 131,199 shares of company stock worth $35,065,587. 0.97% of the stock is currently owned by insiders.

Institutional Investors Weigh In On Tenet Healthcare

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

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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