Surgery Partners, Inc. $SGRY Stock Position Decreased by Gabelli Funds LLC

Key Points

• Gabelli Funds LLC cut its stake in Surgery Partners by 24.8%, selling 78,004 shares and leaving it with 236,998 shares valued at about $5.13 million at the quarter end.
• The board approved a $200 million share buyback, authorizing repurchases of up to 9.7% of outstanding shares.
• Significant insider selling (including the CEO and CFO) and a newly opened shareholder fraud probe into past margin statements raise legal and sentiment risk, compounded by a recent quarter where Surgery Partners missed EPS estimates.

Gabelli Funds LLC decreased its holdings in shares of Surgery Partners, Inc. (NASDAQ:SGRY - Free Report) by 24.8% during the 3rd quarter, according to the company in its most recent disclosure with the Securities & Exchange Commission. The firm owned 236,998 shares of the company's stock after selling 78,004 shares during the quarter. Gabelli Funds LLC owned approximately 0.18% of Surgery Partners worth $5,129,000 at the end of the most recent quarter.

A number of other large investors have also recently bought and sold shares of SGRY. Vanguard Group Inc. grew its holdings in shares of Surgery Partners by 5.9% during the third quarter. Vanguard Group Inc. now owns 7,614,514 shares of the company's stock valued at $164,778,000 after purchasing an additional 424,518 shares during the last quarter. King Street Capital Management L.P. lifted its holdings in shares of Surgery Partners by 24.5% in the 2nd quarter. King Street Capital Management L.P. now owns 6,225,000 shares of the company's stock worth $138,382,000 after purchasing an additional 1,225,000 shares during the last quarter. Dimensional Fund Advisors LP boosted its position in Surgery Partners by 25.5% during the 3rd quarter. Dimensional Fund Advisors LP now owns 4,860,215 shares of the company's stock valued at $105,177,000 after purchasing an additional 988,956 shares during the period. Geode Capital Management LLC grew its stake in Surgery Partners by 0.5% during the 2nd quarter. Geode Capital Management LLC now owns 1,916,384 shares of the company's stock worth $42,606,000 after buying an additional 9,836 shares during the last quarter. Finally, Invesco Ltd. grew its stake in Surgery Partners by 7.4% during the 2nd quarter. Invesco Ltd. now owns 1,683,311 shares of the company's stock worth $37,420,000 after buying an additional 115,627 shares during the last quarter.

Surgery Partners Price Performance

Shares of NASDAQ SGRY opened at $13.30 on Tuesday. The stock has a market cap of $1.72 billion, a P/E ratio of -21.45 and a beta of 1.95. The firm's 50-day simple moving average is $15.16 and its 200 day simple moving average is $18.00. Surgery Partners, Inc. has a fifty-two week low of $12.25 and a fifty-two week high of $24.60. The company has a quick ratio of 1.71, a current ratio of 1.87 and a debt-to-equity ratio of 1.15.

Surgery Partners (NASDAQ:SGRY - Get Free Report) last announced its earnings results on Monday, March 2nd. The company reported $0.12 earnings per share (EPS) for the quarter, missing analysts' consensus estimates of $0.31 by ($0.19). The company had revenue of $885.00 million during the quarter, compared to the consensus estimate of $866.54 million. Surgery Partners had a negative net margin of 2.35% and a positive return on equity of 1.28%. The business's quarterly revenue was up 2.4% on a year-over-year basis. During the same quarter in the prior year, the company earned $0.44 EPS. Equities analysts expect that Surgery Partners, Inc. will post 0.67 EPS for the current year.

Surgery Partners announced that its board has approved a share buyback program on Thursday, February 26th that permits the company to repurchase $200.00 million in outstanding shares. This repurchase authorization permits the company to reacquire up to 9.7% of its shares through open market purchases. Shares repurchase programs are generally a sign that the company's board believes its shares are undervalued.

Wall Street Analysts Forecast Growth

A number of research firms have issued reports on SGRY. Barclays cut their target price on Surgery Partners from $18.00 to $14.00 and set an "equal weight" rating on the stock in a research note on Tuesday, March 3rd. Cantor Fitzgerald reaffirmed an "overweight" rating on shares of Surgery Partners in a report on Wednesday, March 4th. Weiss Ratings reiterated a "sell (e+)" rating on shares of Surgery Partners in a research report on Monday, December 29th. Benchmark reissued a "buy" rating on shares of Surgery Partners in a research note on Tuesday, March 3rd. Finally, Mizuho decreased their target price on shares of Surgery Partners from $19.00 to $17.00 and set an "outperform" rating for the company in a research report on Thursday, March 5th. Nine research analysts have rated the stock with a Buy rating, two have issued a Hold rating and one has given a Sell rating to the company's stock. According to MarketBeat, the company currently has a consensus rating of "Moderate Buy" and an average target price of $24.45.

Surgery Partners News Roundup

Here are the key news stories impacting Surgery Partners this week:

• Positive Sentiment: Broker consensus: Several brokerages give SGRY an average recommendation of “Moderate Buy,” which can support demand and sentiment among growth/healthcare investors. Brokerage Recommendation
• Positive Sentiment: Investor conference: Surgery Partners will present at the Barclays 28th Annual Global Healthcare Conference (Mar 10), offering management a chance to reiterate guidance, margin plans and strategy — a potential catalyst if commentary is constructive. Conference Announcement
• Neutral Sentiment: Q4 highlights coverage: Industry write-ups summarizing outpatient and specialty care Q4 results include Surgery Partners; these summaries provide context on revenue and margin trends but add no single new catalyst. Q4 Coverage
• Neutral Sentiment: Analyst views mixed: Some outlets note mixed analyst opinions — supportive ratings exist but others highlight execution and margin risk; inconsistent analyst messaging can limit strong directional moves. Analysts Mixed
• Negative Sentiment: Shareholder fraud probe: Law firm Levi & Korsinsky has opened an investigation into potential securities law violations tied to past management statements about margin expansion — this raises legal/settlement risk and investor uncertainty. Fraud Investigation
• Negative Sentiment: Heavy insider selling: Multiple insiders — including the CEO (Jason Evans), CFO (David Doherty) and several other officers — sold shares the week of Mar 5–6 (large blocks at ~$13.60–$13.93). Concentrated insider disposals can be perceived negatively by the market; representative SEC filings available. SEC Filing (CEO Sale)

Insider Buying and Selling

In other news, insider Jennifer Baldock sold 10,082 shares of the stock in a transaction that occurred on Friday, March 6th. The shares were sold at an average price of $13.70, for a total value of $138,123.40. Following the completion of the transaction, the insider directly owned 332,272 shares in the company, valued at $4,552,126.40. This trade represents a 2.94% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is accessible through this link. Also, CFO David T. Doherty sold 14,574 shares of the firm's stock in a transaction that occurred on Friday, March 6th. The shares were sold at an average price of $13.84, for a total transaction of $201,704.16. Following the transaction, the chief financial officer owned 88,803 shares in the company, valued at $1,229,033.52. This represents a 14.10% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. In the last quarter, insiders sold 54,705 shares of company stock worth $752,106. Company insiders own 2.70% of the company's stock.

Surgery Partners Profile

Surgery Partners, Inc operates as a healthcare services provider specializing in the management and ownership of ambulatory surgery centers, surgical hospitals and multispecialty rehabilitation hospitals across the United States. Through its network of facilities, the company coordinates and delivers a broad range of outpatient surgical procedures in specialties such as orthopedics, ophthalmology, otolaryngology, gastroenterology, pain management and general surgery. Its integrated platform offers ancillary services including on-site imaging, laboratory testing, infusion therapy and physical, occupational and speech rehabilitation.

Since its establishment in 2010 and subsequent public listing in 2015, Surgery Partners has focused on strategic partnerships with physicians and health systems to expand access to cost-effective outpatient care.

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