Wells Fargo & Company Forecasts Strong Price Appreciation for Tenet Healthcare (NYSE:THC) Stock

Key Points

• Wells Fargo raised Tenet Healthcare’s price target from $281 to $321 while maintaining an “overweight” rating, implying 17.47% upside from the previous close.
• Tenet reported strong quarterly results, with EPS of $6.64 versus the $4.68 consensus estimate and revenue of $6.28 billion, up 6.5% year over year.
• Analyst sentiment remains favorable, with 18 Buy ratings and three Holds producing a “Moderate Buy” consensus and an average price target of $283.05; however, insiders sold roughly $28.9 million of stock over the past 90 days.

Tenet Healthcare (NYSE:THC - Get Free Report) had its price target upped by stock analysts at Wells Fargo & Company from $281.00 to $321.00 in a note issued to investors on Monday, Benzinga reports. The firm currently has an "overweight" rating on the stock. Wells Fargo & Company's price objective would indicate a potential upside of 17.47% from the company's previous close.

THC has been the subject of several other research reports. Raymond James Financial reissued an "outperform" rating and issued a $285.00 price target on shares of Tenet Healthcare in a research report on Friday, August 14th. Cantor Fitzgerald restated an "overweight" rating on shares of Tenet Healthcare in a research report on Friday, October 2nd. TD Cowen upped their price target on Tenet Healthcare from $233.00 to $263.00 and gave the company a "buy" rating in a research report on Monday, July 27th. Stephens reiterated an "overweight" rating and set a $285.00 price objective on shares of Tenet Healthcare in a research note on Monday, July 27th. Finally, BMO Capital Markets initiated coverage on Tenet Healthcare in a report on Tuesday, September 22nd. They set a "market perform" rating and a $265.00 price objective for the company. Eighteen equities research analysts have rated the stock with a Buy rating and three have assigned a Hold rating to the company. According to data from MarketBeat, the stock currently has a consensus rating of "Moderate Buy" and an average target price of $283.05.

Tenet Healthcare Price Performance

Shares of NYSE:THC opened at $273.25 on Monday. The firm has a market capitalization of $21.75 billion, a PE ratio of 7.92, a PEG ratio of 1.03 and a beta of 1.20. Tenet Healthcare has a 1-year low of $157.58 and a 1-year high of $283.05. The business's 50 day moving average is $264.85 and its 200-day moving average is $220.34. The company has a current ratio of 1.58, a quick ratio of 1.52 and a debt-to-equity ratio of 1.76.

Tenet Healthcare (NYSE:THC - Get Free Report) last announced its quarterly earnings results 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. Tenet Healthcare had a net margin of 13.09% and a return on equity of 28.22%. The firm had revenue of $6.28 billion for the quarter, compared to analyst estimates of $5.49 billion. During the same quarter in the previous year, the firm posted $3.70 EPS. The business's revenue for the quarter was up 6.5% on a year-over-year basis. Sell-side analysts predict that Tenet Healthcare will post 21.98 earnings per share for the current year.

Insiders Place Their Bets

In related news, EVP Lisa Foo sold 24,000 shares of the stock in a transaction that occurred on Monday, August 31st. The stock was sold at an average price of $266.32, for a total transaction of $6,391,680.00. Following the sale, the executive vice president directly owned 8,053 shares in the company, valued at $2,144,674.96. This represents a 74.88% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. Also, CEO Saumya Sutaria sold 50,000 shares of the firm's stock in a transaction on Monday, August 24th. The shares were sold at an average price of $278.71, for a total value of $13,935,500.00. Following the sale, the chief executive officer directly owned 483,564 shares of the company's stock, valued at $134,774,122.44. This represents a 9.37% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders sold 106,484 shares of company stock worth $28,898,063 over the last ninety days. 0.97% of the stock is owned by insiders.

Institutional Inflows and Outflows

Institutional investors and hedge funds have recently added to or reduced their stakes in the stock. Kestra Private Wealth Services LLC bought a new stake in shares of Tenet Healthcare during the third quarter valued at approximately $232,000. Chicago Partners Investment Group LLC raised its position in Tenet Healthcare by 7.9% in the 3rd quarter. Chicago Partners Investment Group LLC now owns 1,703 shares of the company's stock worth $457,000 after purchasing an additional 124 shares during the last quarter. Covestor Ltd raised its position in Tenet Healthcare by 22.8% in the 3rd quarter. Covestor Ltd now owns 437 shares of the company's stock worth $112,000 after purchasing an additional 81 shares during the last quarter. Provenance Wealth Advisors LLC acquired a new position in Tenet Healthcare during the 3rd quarter worth $539,000. Finally, IPG Investment Advisors LLC bought a new position in Tenet Healthcare in the 3rd quarter valued at $2,828,000. Institutional investors and hedge funds own 95.44% of the company's stock.

Tenet Healthcare Company Profile

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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