Tenet Healthcare (NYSE:THC) Stock Rating Raised to "Strong-Buy" at Wall Street Zen

Key Points

• Wall Street Zen upgraded Tenet Healthcare to “strong-buy” from “buy.” The broader analyst consensus is “Moderate Buy,” with 18 Buy ratings, three Holds, and an average price target of $278.45.
• Tenet reported strong quarterly results, posting $6.12 in EPS versus the $4.26 consensus estimate and $6.04 billion in revenue, up 6.8% year over year.
• THC shares opened at $267.27, near their 52-week high of $283.05, while insiders sold 131,199 shares worth about $35.1 million over the past 90 days; institutional investors own 95.44% of the stock.

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

Several other research firms have also recently weighed in on THC. Barclays boosted their target price on Tenet Healthcare from $240.00 to $271.00 and gave the stock an "overweight" rating in a research note on Friday, July 24th. Mizuho set a $290.00 price target on shares of Tenet Healthcare in a research note on Monday, August 10th. Morgan Stanley raised their price objective on shares of Tenet Healthcare from $254.00 to $274.00 and gave the stock an "overweight" rating in a report on Monday, July 27th. TD Cowen boosted 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. Finally, Zacks Research cut shares of Tenet Healthcare from a "strong-buy" rating to a "hold" rating in a report on Tuesday, September 29th. Eighteen analysts have rated the stock with a Buy rating and three have issued a Hold rating to the stock. Based on data from MarketBeat.com, Tenet Healthcare presently has a consensus rating of "Moderate Buy" and an average price target of $278.45.

Tenet Healthcare Price Performance

Tenet Healthcare stock opened at $267.27 on Friday. The stock has a market cap of $21.52 billion, a P/E ratio of 10.31, a price-to-earnings-growth ratio of 1.05 and a beta of 1.20. The company has a fifty day simple moving average of $264.36 and a 200-day simple moving average of $219.07. Tenet Healthcare has a 12-month low of $157.58 and a 12-month high of $283.05. 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 (NYSE:THC - Get Free Report) last posted its earnings results on Thursday, July 23rd. The company reported $6.12 EPS for the quarter, beating the consensus estimate of $4.26 by $1.86. Tenet Healthcare had a return on equity of 26.76% and a net margin of 10.27%. The firm had revenue of $6.04 billion for the quarter, compared to analyst estimates of $5.43 billion. During the same quarter in the prior year, the company posted $4.02 earnings per share. Tenet Healthcare's revenue for the quarter was up 6.8% compared to the same quarter last year. Tenet Healthcare has set its FY 2026 guidance at 20.300-21.690 EPS. Equities analysts expect that Tenet Healthcare will post 21.04 EPS for the current fiscal year.

Insider Activity

In related news, Director J. Robert Kerrey sold 12,010 shares of the firm's stock in a transaction that occurred on Monday, September 14th. The stock was sold at an average price of $263.72, for a total transaction of $3,167,277.20. Following the transaction, the director owned 4,794 shares in the company, valued at $1,264,273.68. This trade represents a 71.47% decrease in their position. The transaction was disclosed in a filing with the SEC, which is available through the SEC website. Also, Director Richard Mark sold 10,000 shares of Tenet Healthcare stock in a transaction that occurred 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 directly owned 25,121 shares in the company, valued at approximately $6,617,373.82. This trade represents a 28.47% decrease in their position. The disclosure for this sale is available in the SEC filing. Insiders have sold a total of 131,199 shares of company stock worth $35,065,587 over the last ninety days. 0.97% of the stock is owned by corporate insiders.

Institutional Trading of Tenet Healthcare

Institutional investors and hedge funds have recently bought and sold shares of the business. PeakShares LLC boosted its stake in shares of Tenet Healthcare by 3.3% during the first quarter. PeakShares LLC now owns 1,693 shares of the company's stock worth $319,000 after buying an additional 54 shares during the period. Sanctuary Advisors LLC increased its position in Tenet Healthcare by 0.5% in the 1st quarter. Sanctuary Advisors LLC now owns 11,900 shares of the company's stock valued at $2,246,000 after acquiring an additional 57 shares during the period. Applied Finance Capital Management LLC increased its position in Tenet Healthcare by 3.8% in the 1st quarter. Applied Finance Capital Management LLC now owns 1,644 shares of the company's stock valued at $310,000 after acquiring an additional 60 shares during the period. Mather Group LLC. raised its stake in Tenet Healthcare by 126.9% during the 3rd quarter. Mather Group LLC. now owns 118 shares of the company's stock valued at $30,000 after acquiring an additional 66 shares during the last quarter. Finally, Davidson Capital Management Inc. raised its stake in Tenet Healthcare by 1.0% during the 3rd quarter. Davidson Capital Management Inc. now owns 6,712 shares of the company's stock valued at $1,715,000 after acquiring an additional 67 shares during the last quarter. Hedge funds and other institutional investors 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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