Surgery Partners (NASDAQ:SGRY) Sets New 12-Month High - What's Next?

Key Points

• Surgery Partners reached a new 52-week high of $23.39 after Bon Secours Mercy Health agreed to take the company private for $23.50 per share, providing valuation support.
• Law firms are investigating the proposed merger on behalf of shareholders, potentially creating uncertainty around the deal’s terms and timing.
• Analyst sentiment is cautious: TD Cowen and RBC downgraded the stock to “hold,” while KeyCorp sharply reduced its earnings forecasts, citing weaker expected profitability.

Surgery Partners, Inc. (NASDAQ:SGRY - Get Free Report)'s stock price reached a new 52-week high during mid-day trading on Tuesday. The stock traded as high as $23.39 and last traded at $23.1910, with a volume of 5,487 shares traded. The stock had previously closed at $23.12.

Trending Headlines about Surgery Partners

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

• Positive Sentiment: Bon Secours acquisition provides valuation support. Bon Secours Mercy Health has agreed to take Surgery Partners private for $23.50 per share, with Bain Capital rolling its equity into the post-merger company. The transaction helps explain why SGRY remains near its 52-week high and above the recently reported consensus price target of $22.61. Surgery Partners stock enters take-private focus after HealthSpan deal
• Neutral Sentiment: Merger investigations could affect the deal outcome. Bleichmar Fonti & Auld and other law firms are investigating whether Surgery Partners’ directors fulfilled their fiduciary duties in connection with the $23.50-per-share merger. These announcements do not allege wrongdoing, but they introduce potential uncertainty around closing terms and timing. SGRY shareholder notice
• Negative Sentiment: TD Cowen downgraded the shares from “strong buy” to “hold.” The downgrade signals that analysts see little additional appreciation beyond the merger consideration at the current trading level. TD Cowen downgrade report
• Negative Sentiment: KeyCorp lowered its earnings outlook. KeyCorp cut its FY2026 EPS forecast to $0.07 from $0.16, reduced FY2027 expectations to a loss of $0.21 per share from a profit of $0.13, and projects losses of $0.13 and $0.08 per share for the third and fourth quarters of 2026, respectively. The revisions contrast with the $0.25 consensus estimate for the current year and point to weaker underlying profitability.

Analysts Set New Price Targets

Several equities research analysts have recently issued reports on the company. Raymond James Financial set a $23.50 price objective on Surgery Partners in a report on Monday, October 26th. TD Cowen downgraded Surgery Partners from a "strong-buy" rating to a "hold" rating in a report on Saturday. JPMorgan Chase & Co. raised their price objective on Surgery Partners from $14.00 to $15.00 and gave the company a "neutral" rating in a research report on Monday, September 14th. Benchmark restated a "buy" rating on shares of Surgery Partners in a research note on Tuesday, August 11th. Finally, Royal Bank Of Canada downgraded Surgery Partners from a "moderate buy" rating to a "hold" rating and set a $23.50 target price on the stock. in a report on Monday, October 26th. Three investment analysts have rated the stock with a Buy rating, eight have given a Hold rating and one has given a Sell rating to the company. According to MarketBeat, Surgery Partners presently has an average rating of "Hold" and a consensus price target of $20.14.

Surgery Partners Stock Up 0.3%

The stock has a fifty day moving average price of $15.30 and a two-hundred day moving average price of $14.68. The company has a debt-to-equity ratio of 1.18, a quick ratio of 1.78 and a current ratio of 1.95. The firm has a market capitalization of $3.04 billion, a P/E ratio of -33.12, a P/E/G ratio of 7.19 and a beta of 1.90.

Surgery Partners (NASDAQ:SGRY - Get Free Report) last posted its earnings results on Monday, August 10th. The company reported $0.10 EPS for the quarter, beating the consensus estimate of $0.06 by $0.04. The company had revenue of $848.90 million during the quarter, compared to analyst estimates of $830.03 million. Surgery Partners had a positive return on equity of 0.88% and a negative net margin of 2.63%. The business's revenue was up 2.7% compared to the same quarter last year. During the same period in the prior year, the company earned $0.17 earnings per share. Research analysts forecast that Surgery Partners, Inc. will post 0.25 EPS for the current year.

Insider Activity

In other Surgery Partners news, Director Teresa DeLuca purchased 10,000 shares of the stock in a transaction dated Tuesday, August 18th. The shares were bought at an average cost of $14.35 per share, with a total value of $143,500.00. Following the completion of the acquisition, the director owned 66,843 shares of the company's stock, valued at approximately $959,197.05. This trade represents a 17.59% increase in their ownership of the stock. The purchase was disclosed in a filing with the Securities & Exchange Commission, which is accessible through the SEC website. Insiders own 2.00% of the company's stock.

Hedge Funds Weigh In On Surgery Partners

Hedge funds have recently modified their holdings of the company. Vise Technologies Inc. bought a new stake in Surgery Partners during the third quarter worth approximately $191,000. State of Wyoming increased its holdings in shares of Surgery Partners by 51.4% in the third quarter. State of Wyoming now owns 23,568 shares of the company's stock valued at $327,000 after buying an additional 7,997 shares in the last quarter. VIRGINIA RETIREMENT SYSTEMS ET Al bought a new position in shares of Surgery Partners in the third quarter valued at $426,000. Inspire Investing LLC increased its holdings in shares of Surgery Partners by 10.1% in the third quarter. Inspire Investing LLC now owns 44,768 shares of the company's stock valued at $621,000 after buying an additional 4,099 shares in the last quarter. Finally, TD Waterhouse Canada Inc. lifted its position in shares of Surgery Partners by 18.3% during the 3rd quarter. TD Waterhouse Canada Inc. now owns 196,887 shares of the company's stock valued at $2,601,000 after acquiring an additional 30,476 shares during the last quarter.

About Surgery Partners

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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