Gabelli Funds LLC Cuts Stock Holdings in Tenet Healthcare Corporation $THC

Key Points

• Gabelli Funds LLC cut its Tenet Healthcare stake by 33.4% in the fourth quarter, selling 31,900 shares and leaving it with 63,535 shares valued at about $12.6 million.
• Wall Street remains broadly positive on THC, with 19 Buy ratings and 3 Hold ratings, giving it a consensus rating of “Moderate Buy” and an average price target of $244.16.
• Tenet reported stronger-than-expected quarterly earnings, posting EPS of $4.82 versus the $4.21 estimate, while revenue came in slightly below expectations at $5.37 billion.

Gabelli Funds LLC reduced its position in shares of Tenet Healthcare Corporation (NYSE:THC - Free Report) by 33.4% in the 4th quarter, according to its most recent disclosure with the Securities & Exchange Commission. The institutional investor owned 63,535 shares of the company's stock after selling 31,900 shares during the period. Gabelli Funds LLC owned approximately 0.07% of Tenet Healthcare worth $12,626,000 as of its most recent SEC filing.

Several other large investors have also recently added to or reduced their stakes in the company. Triumph Capital Management acquired a new position in Tenet Healthcare during the third quarter worth about $25,000. Activest Wealth Management acquired a new position in Tenet Healthcare during the fourth quarter worth about $26,000. Elyxium Wealth LLC acquired a new position in Tenet Healthcare during the fourth quarter worth about $29,000. William B. Walkup & Associates Inc. acquired a new position in Tenet Healthcare during the third quarter worth about $32,000. Finally, Westside Investment Management Inc. grew its position in Tenet Healthcare by 100.0% during the third quarter. Westside Investment Management Inc. now owns 192 shares of the company's stock worth $39,000 after buying an additional 96 shares during the period. 95.44% of the stock is owned by hedge funds and other institutional investors.

Wall Street Analyst Weigh In

Several research analysts have weighed in on the stock. Wall Street Zen lowered shares of Tenet Healthcare from a "strong-buy" rating to a "buy" rating in a research report on Monday, May 11th. Morgan Stanley set a $254.00 price target on shares of Tenet Healthcare in a research report on Friday, May 1st. UBS Group increased their price target on shares of Tenet Healthcare from $260.00 to $288.00 and gave the company a "buy" rating in a research report on Thursday, February 12th. Jefferies Financial Group increased their price target on shares of Tenet Healthcare from $250.00 to $265.00 and gave the company a "buy" rating in a research report on Thursday, February 12th. Finally, Weiss Ratings reiterated a "buy (b-)" rating on shares of Tenet Healthcare in a research report on Friday, March 27th. Nineteen 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, the stock has a consensus rating of "Moderate Buy" and an average price target of $244.16.

Tenet Healthcare Stock Performance

Shares of THC stock opened at $190.64 on Wednesday. The company's fifty day simple moving average is $197.55 and its 200-day simple moving average is $203.44. Tenet Healthcare Corporation has a 52 week low of $146.60 and a 52 week high of $247.21. The company has a current ratio of 1.36, a quick ratio of 1.30 and a debt-to-equity ratio of 1.96. The company has a market cap of $16.42 billion, a PE ratio of 9.91, a P/E/G ratio of 1.27 and a beta of 1.30.

Tenet Healthcare (NYSE:THC - Get Free Report) last issued its earnings results on Thursday, April 30th. The company reported $4.82 EPS for the quarter, beating analysts' consensus estimates of $4.21 by $0.61. The business had revenue of $5.37 billion for the quarter, compared to the consensus estimate of $5.39 billion. Tenet Healthcare had a net margin of 7.94% and a return on equity of 25.55%. The business's revenue for the quarter was up 2.6% compared to the same quarter last year. During the same quarter last year, the firm posted $4.36 EPS. Tenet Healthcare has set its FY 2026 guidance at 16.380-18.68 EPS. As a group, equities research analysts anticipate that Tenet Healthcare Corporation will post 17.64 EPS for the current year.

Insider Activity at Tenet Healthcare

In other Tenet Healthcare news, EVP Paola M. Arbour sold 6,500 shares of the firm's stock in a transaction on Wednesday, March 11th. The shares were sold at an average price of $238.43, for a total transaction of $1,549,795.00. Following the completion of the transaction, the executive vice president directly owned 29,291 shares of the company's stock, valued at $6,983,853.13. This trade represents a 18.16% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. Also, insider R. Scott Ramsey sold 8,017 shares of the firm's stock in a transaction on Monday, March 2nd. The stock was sold at an average price of $232.70, for a total transaction of $1,865,555.90. The disclosure for this sale is available in the SEC filing. In the last three months, insiders sold 46,517 shares of company stock valued at $10,943,111. Corporate insiders own 0.97% of the company's stock.

Key Headlines Impacting Tenet Healthcare

Here are the key news stories impacting Tenet Healthcare this week:

• Positive Sentiment: Zacks Research raised its FY2027 earnings estimate for Tenet Healthcare to $17.17 per share from $16.35, which reinforces the view that profitability remains solid and supports the stock’s valuation. Article Title
• Positive Sentiment: Wall Street commentary also pointed to a roughly 26% implied upside based on average analyst price targets, which may be helping offset some near-term weakness. Article Title
• Neutral Sentiment: Analysts also nudged some near-term quarterly estimates higher, including Q3 2027 and Q4 2027, but the changes were modest and not enough on their own to drive a major move. Article Title
• Negative Sentiment: Offsetting that optimism, Zacks cut its Q2 2027 EPS estimate from $4.75 to $4.17, suggesting some near-term earnings pressure. Article Title
• Negative Sentiment: Tenet is also involved in a legal dispute with Leapfrog over hospital ratings and legal fees, including a request that Leapfrog pay $10.5 million, which keeps litigation risk in focus. Article Title

Tenet Healthcare Company Profile

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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