Surgery Partners (NASDAQ:SGRY) Share Price Crosses Below 200 Day Moving Average - What's Next?

Key Points

• Stock fell below its 200-day moving average: SGRY traded as low as $14.26 and last at $14.58 versus its 200-day MA of $15.94 on roughly 1.03M shares, signaling a technical weakness.
• Quarterly results missed expectations: the company reported $0.12 EPS (vs. $0.31 est.) while revenue rose to $885M; profitability remains weak with a negative net margin of 2.35% and a negative trailing P/E.
• Analyst and capital-return backdrop: consensus is a Moderate Buy with an average target of $22, management authorized a $200 million buyback, but insiders have been net sellers recently.

Surgery Partners, Inc. (NASDAQ:SGRY - Get Free Report)'s stock price passed below its two hundred day moving average during trading on Tuesday . The stock has a two hundred day moving average of $15.94 and traded as low as $14.26. Surgery Partners shares last traded at $14.58, with a volume of 1,033,569 shares trading hands.

Analyst Upgrades and Downgrades

A number of analysts recently issued reports on the company. US Capital Advisors set a $21.00 target price on Surgery Partners in a research note on Wednesday, March 11th. Mizuho cut their price objective on Surgery Partners from $19.00 to $17.00 and set an "outperform" rating for the company in a report on Thursday, March 5th. UBS Group reissued a "buy" rating on shares of Surgery Partners in a report on Wednesday, March 11th. Royal Bank Of Canada cut their price target on Surgery Partners from $31.00 to $20.00 and set an "outperform" rating for the company in a report on Wednesday, March 4th. Finally, Zacks Research downgraded Surgery Partners from a "hold" rating to a "strong sell" rating in a report on Tuesday, April 7th. Eight investment analysts have rated the stock with a Buy rating, two have assigned a Hold rating and two have given a Sell rating to the stock. Based on data from MarketBeat.com, the stock presently has a consensus rating of "Moderate Buy" and an average target price of $22.00.

Surgery Partners Stock Performance

The company has a debt-to-equity ratio of 1.15, a current ratio of 1.87 and a quick ratio of 1.71. The stock has a 50-day simple moving average of $13.55 and a 200-day simple moving average of $15.94. The stock has a market cap of $1.89 billion, a P/E ratio of -23.52 and a beta of 1.99.

Surgery Partners (NASDAQ:SGRY - Get Free Report) last released 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). Surgery Partners had a negative net margin of 2.35% and a positive return on equity of 1.28%. The business had revenue of $885.00 million during the quarter, compared to the consensus estimate of $866.54 million. During the same quarter in the prior year, the firm earned $0.44 EPS. The business's revenue was up 2.4% on a year-over-year basis. Research analysts forecast that Surgery Partners, Inc. will post 0.24 earnings per share for the current year.

Surgery Partners announced that its board has authorized a stock buyback program on Thursday, February 26th that permits the company to buyback $200.00 million in outstanding shares. This buyback authorization permits the company to repurchase up to 9.7% of its stock through open market purchases. Stock buyback programs are usually an indication that the company's management believes its stock is undervalued.

Insider Activity at Surgery Partners

In other news, insider Danielle Burkhalter sold 3,469 shares of the business's stock in a transaction dated Friday, March 13th. The stock was sold at an average price of $12.83, for a total transaction of $44,507.27. Following the sale, the insider directly owned 76,864 shares in the company, valued at approximately $986,165.12. The trade was a 4.32% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is accessible through the SEC website. Also, insider Jennifer Baldock sold 5,798 shares of the company's stock in a transaction that occurred on Thursday, March 12th. The shares were sold at an average price of $13.17, for a total value of $76,359.66. Following the completion of the sale, the insider owned 326,474 shares in the company, valued at $4,299,662.58. The trade was a 1.74% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. In the last 90 days, insiders sold 96,896 shares of company stock valued at $1,284,058. Corporate insiders own 2.70% of the company's stock.

Institutional Trading of Surgery Partners

Institutional investors have recently added to or reduced their stakes in the stock. Jones Financial Companies Lllp boosted its holdings in Surgery Partners by 313.1% in the third quarter. Jones Financial Companies Lllp now owns 1,227 shares of the company's stock valued at $27,000 after acquiring an additional 930 shares during the last quarter. Caitong International Asset Management Co. Ltd increased its holdings in shares of Surgery Partners by 45,640.0% during the third quarter. Caitong International Asset Management Co. Ltd now owns 2,287 shares of the company's stock valued at $49,000 after acquiring an additional 2,282 shares in the last quarter. PNC Financial Services Group Inc. increased its holdings in shares of Surgery Partners by 128.4% during the third quarter. PNC Financial Services Group Inc. now owns 2,702 shares of the company's stock valued at $58,000 after acquiring an additional 1,519 shares in the last quarter. Aquatic Capital Management LLC bought a new stake in Surgery Partners during the third quarter worth $121,000. Finally, State of Alaska Department of Revenue bought a new stake in Surgery Partners during the third quarter worth $151,000.

Surgery Partners Company 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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