Surgery Partners (NASDAQ:SGRY) Sees Strong Trading Volume - Here's What Happened

Key Points

• HealthSpan Partners agreed to acquire Surgery Partners in an all-cash deal valued at $23.50 per share and approximately $5.7 billion in enterprise value. HealthSpan is reportedly acquiring a roughly 61.24% stake, offering shareholders a defined cash exit.
• Surgery Partners shares experienced unusually strong trading volume, with about 2.54 million shares changing hands—26% above the average daily volume—while trading near $23.22.
• Analyst sentiment is mixed but currently averages a “Hold” rating, with five Buy, five Hold and one Sell recommendation; the average price target is $19.91, below the proposed acquisition price.

Shares of Surgery Partners, Inc. (NASDAQ:SGRY - Get Free Report) saw unusually-strong trading volume on Tuesday. Approximately 2,536,213 shares changed hands during mid-day trading, an increase of 26% from the average daily volume of 2,019,249 shares. The stock last traded at $23.2150 and had previously closed at $23.25.

Key Headlines Impacting Surgery Partners

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

• Positive Sentiment: HealthSpan Partners agreed to acquire Surgery Partners in an all-cash transaction offering $23.50 per share, valuing the company at approximately $5.7 billion in enterprise value. The deal represents a substantial premium to SGRY’s pre-announcement trading level and provides shareholders with a defined exit value. Surgery Partners to be taken private by Bon Secours affiliate in $5.7 billion deal
• Positive Sentiment: The proposed takeover removes much of the uncertainty surrounding Surgery Partners’ standalone valuation and gives investors a potential cash realization. Reports indicate HealthSpan will acquire a majority stake, including an approximately 61.24% interest, in the transaction. HealthSpan Partners agreement to acquire a stake in Surgery Partners

Wall Street Analyst Weigh In

Several research analysts have weighed in on SGRY shares. Royal Bank Of Canada lowered Surgery Partners from a "moderate buy" rating to a "hold" rating and set a $23.50 price target on the stock. in a research report on Monday. Weiss Ratings raised Surgery Partners from a "sell (e+)" rating to a "sell (d-)" rating in a report on Friday, October 16th. TD Cowen restated a "buy" rating and set a $19.00 price objective on shares of Surgery Partners in a research note on Friday, September 18th. Zacks Research cut shares of Surgery Partners from a "strong-buy" rating to a "hold" rating in a report on Monday, August 10th. Finally, Benchmark reaffirmed a "buy" rating on shares of Surgery Partners in a report on Tuesday, August 11th. Five analysts have rated the stock with a Buy rating, five have issued a Hold rating and one has given a Sell rating to the stock. According to MarketBeat.com, the stock currently has an average rating of "Hold" and an average target price of $19.91.

Surgery Partners Stock Down 0.3%

The company has a market cap of $3.04 billion, a price-to-earnings ratio of -33.12, a P/E/G ratio of 4.87 and a beta of 1.90. The stock has a fifty day moving average price of $14.39 and a two-hundred day moving average price of $14.50. The company has a quick ratio of 1.78, a current ratio of 1.95 and a debt-to-equity ratio of 1.18.

Surgery Partners (NASDAQ:SGRY - Get Free Report) last issued its quarterly earnings data on Monday, August 10th. The company reported $0.10 earnings per share for the quarter, topping the consensus estimate of $0.06 by $0.04. The business had revenue of $848.90 million during the quarter, compared to analysts' expectations of $830.03 million. Surgery Partners had a negative net margin of 2.63% and a positive return on equity of 0.88%. The business's revenue was up 2.7% on a year-over-year basis. During the same quarter in the previous year, the company earned $0.17 EPS. As a group, sell-side analysts expect that Surgery Partners, Inc. will post 0.25 EPS for the current year.

Insider Buying and Selling

In other news, Director Teresa DeLuca acquired 10,000 shares of Surgery Partners stock in a transaction on Tuesday, August 18th. The shares were purchased at an average cost of $14.35 per share, for a total transaction of $143,500.00. Following the completion of the purchase, the director directly owned 66,843 shares of the company's stock, valued at approximately $959,197.05. This represents a 17.59% increase in their position. The transaction was disclosed in a filing with the SEC, which is available through the SEC website. 2.00% of the stock is currently owned by company insiders.

Hedge Funds Weigh In On Surgery Partners

Several hedge funds and other institutional investors have recently modified their holdings of the business. Jupiter Topco LLC bought a new stake in shares of Surgery Partners during the 2nd quarter valued at approximately $233,220,000. Pentwater Capital Management LP acquired a new position in shares of Surgery Partners during the second quarter worth approximately $195,384,000. BlackRock Inc. purchased a new stake in Surgery Partners in the 2nd quarter valued at $104,857,000. Dimensional Fund Advisors LP lifted its stake in Surgery Partners by 7.9% during the 1st quarter. Dimensional Fund Advisors LP now owns 5,296,411 shares of the company's stock valued at $63,131,000 after acquiring an additional 389,831 shares in the last quarter. Finally, Hsbc Holdings PLC bought a new position in Surgery Partners during the 2nd quarter valued at $48,912,000.

Surgery Partners Company Profile

Surgery Partners, Inc is a U.S.-based healthcare services company that operates and manages ambulatory surgery centers and surgical hospitals. The company works with physicians, health systems and other healthcare providers to deliver outpatient surgical care in facilities designed for same-day procedures.

Its facilities provide surgical services across specialties such as orthopedics, pain management, ophthalmology, gastroenterology, urology, gynecology and general surgery. Surgery Partners also supports its operations with clinical, administrative and revenue-cycle services intended to help physicians and facility partners manage patient care and practice operations.

Founded in 2004 and headquartered in Brentwood, Tennessee, Surgery Partners has expanded its platform through acquisitions, joint ventures and other partnerships.

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