Tenet Healthcare Corporation (NYSE:THC) Given Average Rating of "Buy" by Brokerages

Key Points

• Analysts remain strongly bullish: Twenty brokerages give Tenet Healthcare an average “Buy” rating, with 18 buys, one hold, and one strong buy. The average 12-month price target is $275.53, with targets as high as $308.
• Quarterly results exceeded expectations: Tenet reported $6.12 in EPS versus the $4.26 consensus estimate, while revenue rose 6.8% year over year to $6.04 billion, topping forecasts.
• Insiders have been selling shares: Executives sold 109,189 shares worth approximately $29.3 million over the last quarter, including sizable sales by the CEO and an executive vice president. Institutional investors and hedge funds still own 95.44% of the stock.

Shares of Tenet Healthcare Corporation (NYSE:THC - Get Free Report) have received an average rating of "Buy" from the twenty brokerages that are covering the company, MarketBeat.com reports. One research analyst has rated the stock with a hold recommendation, eighteen have given a buy recommendation and one has given a strong buy recommendation to the company. The average 1 year price target among analysts that have issued a report on the stock in the last year is $275.5263.

THC has been the topic of a number of analyst reports. Guggenheim lifted their price target on Tenet Healthcare from $242.00 to $283.00 and gave the stock a "buy" rating in a research note on Tuesday, July 28th. Stephens reissued an "overweight" rating and issued a $285.00 price target on shares of Tenet Healthcare in a research note on Monday, July 27th. Raymond James Financial reaffirmed an "outperform" rating and issued a $285.00 price target on shares of Tenet Healthcare in a research report on Friday, August 14th. Weiss Ratings raised shares of Tenet Healthcare from a "hold (c+)" rating to a "buy (b-)" rating in a report on Thursday, August 20th. Finally, UBS Group increased their target price on Tenet Healthcare from $288.00 to $308.00 and gave the company a "buy" rating in a research note on Monday, July 27th.

Tenet Healthcare Stock Performance

Shares of THC opened at $263.75 on Friday. Tenet Healthcare has a 52-week low of $157.58 and a 52-week high of $283.05. The firm has a market capitalization of $21.24 billion, a PE ratio of 10.17, a P/E/G ratio of 1.03 and a beta of 1.23. The firm has a 50-day moving average price of $243.84 and a 200 day moving average price of $212.04. 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 (NYSE:THC - Get Free Report) last released its earnings results on Thursday, July 23rd. The company reported $6.12 EPS for the quarter, topping 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 for the quarter, compared to the consensus estimate of $5.43 billion. During the same period in the previous year, the firm earned $4.02 EPS. The business's revenue for the quarter was up 6.8% on a year-over-year basis. Tenet Healthcare has set its FY 2026 guidance at 20.300-21.690 EPS. On average, sell-side analysts anticipate that Tenet Healthcare will post 21.04 earnings per share for the current fiscal year.

Insider Activity

In other news, EVP Paola M. Arbour sold 10,878 shares of the stock in a transaction on Monday, July 27th. The shares were sold at an average price of $243.90, for a total value of $2,653,144.20. Following the completion of the transaction, the executive vice president owned 18,413 shares in the company, valued at approximately $4,490,930.70. This represents a 37.14% decrease in their position. The sale was disclosed in a filing with the SEC, which can be accessed through the SEC website. Also, CEO Saumya Sutaria sold 50,000 shares of the stock in a transaction dated 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 completion of the transaction, the chief executive officer directly owned 483,564 shares of the company's stock, valued at $134,774,122.44. This trade represents a 9.37% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Over the last quarter, insiders sold 109,189 shares of company stock worth $29,264,109. Corporate insiders own 0.97% of the company's stock.

Institutional Inflows and Outflows

Hedge funds have recently bought and sold shares of the stock. Triumph Capital Management acquired a new stake in shares of Tenet Healthcare during the 3rd quarter worth about $25,000. Elyxium Wealth LLC bought a new stake in shares of Tenet Healthcare during the 4th quarter valued at $29,000. Canada Pension Plan Investment Board acquired a new position in Tenet Healthcare in the second quarter valued at about $35,000. Trust Co. of Vermont acquired a new stake in shares of Tenet Healthcare in the 2nd quarter valued at approximately $37,000. Finally, Meeder Asset Management Inc. raised its holdings in Tenet Healthcare by 146.2% in the fourth quarter. Meeder Asset Management Inc. now owns 192 shares of the company's stock worth $38,000 after purchasing an additional 114 shares during the period. 95.44% of the stock is currently owned by institutional investors and hedge funds.

Tenet Healthcare Company Profile

Tenet Healthcare Corporation NYSE: THC is a diversified healthcare services company that owns and operates acute care hospitals and other healthcare facilities in the United States. Its hospitals provide services including emergency care, surgery, cardiovascular care, orthopedics, oncology, women's health and other inpatient and outpatient treatments.

Through its ambulatory business, United Surgical Partners International, Tenet operates and manages ambulatory surgery centers and other outpatient facilities.

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