Eminence Capital LP Reduces Stock Position in Tenet Healthcare Corporation $THC

Key Points

• Eminence Capital LP cut its Tenet Healthcare stake by 44.7% in the fourth quarter, selling 495,489 shares and leaving it with 613,961 shares valued at about $122.0 million.
• Tenet Healthcare shares were down 2.7% to $178.63, with the stock trading at a P/E of 9.29 and a market cap of roughly $15.39 billion.
• The company recently beat earnings expectations, reporting $4.82 EPS versus $4.21 estimated, while analysts remain broadly positive with an average rating of “Moderate Buy” and a consensus price target of $244.16.

Eminence Capital LP trimmed its position in Tenet Healthcare Corporation (NYSE:THC - Free Report) by 44.7% in the fourth quarter, according to its most recent 13F filing with the Securities and Exchange Commission. The fund owned 613,961 shares of the company's stock after selling 495,489 shares during the quarter. Tenet Healthcare makes up approximately 1.9% of Eminence Capital LP's holdings, making the stock its 22nd largest position. Eminence Capital LP owned 0.70% of Tenet Healthcare worth $122,006,000 at the end of the most recent quarter.

Other institutional investors have also made changes to their positions in the company. Caption Management LLC bought a new stake in shares of Tenet Healthcare in the 3rd quarter valued at approximately $5,650,000. Hillsdale Investment Management Inc. boosted its position in Tenet Healthcare by 31.0% during the 3rd quarter. Hillsdale Investment Management Inc. now owns 22,800 shares of the company's stock valued at $4,629,000 after purchasing an additional 5,400 shares during the period. Sirios Capital Management L P boosted its position in Tenet Healthcare by 100.9% during the 3rd quarter. Sirios Capital Management L P now owns 71,566 shares of the company's stock valued at $14,531,000 after purchasing an additional 35,947 shares during the period. Algert Global LLC boosted its position in Tenet Healthcare by 21.8% during the 3rd quarter. Algert Global LLC now owns 50,379 shares of the company's stock valued at $10,229,000 after purchasing an additional 9,000 shares during the period. Finally, Fox Run Management L.L.C. boosted its position in Tenet Healthcare by 538.6% during the 3rd quarter. Fox Run Management L.L.C. now owns 8,634 shares of the company's stock valued at $1,753,000 after purchasing an additional 7,282 shares during the period. 95.44% of the stock is currently owned by institutional investors.

Tenet Healthcare Trading Down 2.7%

Shares of THC stock opened at $178.63 on Thursday. The company has a debt-to-equity ratio of 1.96, a quick ratio of 1.30 and a current ratio of 1.36. Tenet Healthcare Corporation has a 1 year low of $146.60 and a 1 year high of $247.21. The stock has a fifty day moving average of $183.44 and a two-hundred day moving average of $199.04. The firm has a market capitalization of $15.39 billion, a PE ratio of 9.29, a price-to-earnings-growth ratio of 1.51 and a beta of 1.28.

Tenet Healthcare (NYSE:THC - Get Free Report) last announced its quarterly earnings data on Thursday, April 30th. The company reported $4.82 earnings per share for the quarter, beating the consensus estimate of $4.21 by $0.61. The business had revenue of $5.37 billion during the quarter, compared to analyst estimates of $5.39 billion. Tenet Healthcare had a return on equity of 25.55% and a net margin of 7.94%.The company's revenue was up 2.6% on a year-over-year basis. During the same quarter in the prior year, the firm posted $4.36 earnings per share. Tenet Healthcare has set its FY 2026 guidance at 16.380-18.68 EPS. As a group, research analysts expect that Tenet Healthcare Corporation will post 17.61 EPS for the current year.

Insiders Place Their Bets

In other news, Director J Robert Kerrey sold 5,638 shares of the business's stock in a transaction on Thursday, May 28th. The stock was sold at an average price of $174.52, for a total transaction of $983,943.76. Following the sale, the director directly owned 16,804 shares of the company's stock, valued at $2,932,634.08. The trade was a 25.12% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. Also, Director Nadja West sold 3,000 shares of the company's stock in a transaction on Wednesday, May 27th. The shares were sold at an average price of $177.35, for a total value of $532,050.00. Following the transaction, the director directly owned 24,805 shares in the company, valued at $4,399,166.75. The trade was a 10.79% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. 0.97% of the stock is owned by insiders.

Wall Street Analyst Weigh In

A number of research firms recently issued reports on THC. Barclays reduced their price objective on Tenet Healthcare from $257.00 to $238.00 and set an "overweight" rating for the company in a research report on Tuesday, May 5th. Cantor Fitzgerald restated an "overweight" rating on shares of Tenet Healthcare in a research report on Wednesday, March 4th. KeyCorp reduced their price objective on Tenet Healthcare from $250.00 to $225.00 and set an "overweight" rating for the company in a research report on Friday, May 1st. Wells Fargo & Company reduced their price target on Tenet Healthcare from $265.00 to $213.00 and set an "overweight" rating for the company in a research report on Friday, May 1st. Finally, Stephens reduced their price target on Tenet Healthcare from $275.00 to $260.00 and set an "overweight" rating for the company in a research report on Monday, May 4th. Eighteen research analysts have rated the stock with a Buy rating and four have given a Hold rating to the stock. Based on data from MarketBeat, the company has an average rating of "Moderate Buy" and an average price target of $244.16.

About Tenet Healthcare

Tenet Healthcare Corporation NYSE: THC is a diversified American healthcare services company that owns and operates acute care hospitals and a broad range of outpatient facilities. Its portfolio includes general acute-care hospitals, specialty hospitals, ambulatory surgery centers, urgent care and diagnostic imaging centers, and other ancillary service locations. Tenet's operations are oriented around delivering inpatient and outpatient clinical care across multiple medical specialties, with an emphasis on surgical services, emergency care, and advanced diagnostics.

In addition to facility-based care, Tenet provides integrated services designed to support clinical operations and improve patient access and care coordination.

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