Surgery Partners (NASDAQ:SGRY) Trading 7.8% Higher - Still a Buy?

Key Points

• Surgery Partners shares rose 7.8% in Friday trading, briefly reaching $16.51 before closing at $16.40, on volume well below average.
• Analysts are mixed but generally constructive: Zacks upgraded the stock to Strong Buy, Jefferies kept a Buy rating with a $17 target, while Weiss reiterated a sell rating. The consensus rating remains Moderate Buy with an average price target of $22.18.
• The company’s latest earnings beat expectations, posting a smaller-than-expected loss and 4.5% revenue growth year over year. Surgery Partners also reported solid liquidity, with a current ratio of 1.86 and a quick ratio of 1.69.

Surgery Partners, Inc. (NASDAQ:SGRY - Get Free Report)'s share price was up 7.8% during mid-day trading on Friday . The stock traded as high as $16.51 and last traded at $16.4010. Approximately 280,042 shares traded hands during trading, a decline of 81% from the average session volume of 1,487,515 shares. The stock had previously closed at $15.22.

Analyst Upgrades and Downgrades

A number of equities analysts have commented on the stock. Zacks Research raised shares of Surgery Partners from a "hold" rating to a "strong-buy" rating in a research note on Thursday, June 4th. Jefferies Financial Group reaffirmed a "buy" rating and set a $17.00 price objective on shares of Surgery Partners in a report on Wednesday, May 6th. Finally, Weiss Ratings reiterated a "sell (e+)" rating on shares of Surgery Partners in a research report on Tuesday, May 26th. One research analyst has rated the stock with a Strong Buy rating, eight have assigned a Buy rating, two have issued a Hold rating and one has given a Sell rating to the company. According to MarketBeat.com, the stock has an average rating of "Moderate Buy" and an average price target of $22.18.

Surgery Partners Trading Up 6.7%

The stock has a fifty day moving average of $14.98 and a two-hundred day moving average of $14.44. The company has a market capitalization of $2.12 billion, a PE ratio of -26.80, a PEG ratio of 4.53 and a beta of 1.89. The company has a current ratio of 1.86, a quick ratio of 1.69 and a debt-to-equity ratio of 1.17.

Surgery Partners (NASDAQ:SGRY - Get Free Report) last issued its earnings results on Tuesday, May 5th. The company reported ($0.03) earnings per share (EPS) for the quarter, topping the consensus estimate of ($0.15) by $0.12. Surgery Partners had a positive return on equity of 1.04% and a negative net margin of 2.28%.The business had revenue of $810.90 million during the quarter, compared to analyst estimates of $797.69 million. During the same quarter in the prior year, the firm earned $0.04 earnings per share. Surgery Partners's revenue for the quarter was up 4.5% on a year-over-year basis. As a group, sell-side analysts anticipate that Surgery Partners, Inc. will post 0.25 earnings per share for the current fiscal year.

Institutional Investors Weigh In On Surgery Partners

A number of institutional investors have recently made changes to their positions in the business. State of Wisconsin Investment Board raised its holdings in Surgery Partners by 0.4% in the 4th quarter. State of Wisconsin Investment Board now owns 151,504 shares of the company's stock worth $2,341,000 after purchasing an additional 668 shares in the last quarter. ProShare Advisors LLC boosted its stake in shares of Surgery Partners by 6.9% during the 4th quarter. ProShare Advisors LLC now owns 14,135 shares of the company's stock valued at $218,000 after purchasing an additional 909 shares in the last quarter. California State Teachers Retirement System boosted its stake in shares of Surgery Partners by 1.6% during the 2nd quarter. California State Teachers Retirement System now owns 65,091 shares of the company's stock valued at $1,447,000 after purchasing an additional 1,021 shares in the last quarter. Sanctuary Advisors LLC increased its position in shares of Surgery Partners by 4.5% during the fourth quarter. Sanctuary Advisors LLC now owns 28,488 shares of the company's stock valued at $440,000 after buying an additional 1,218 shares during the period. Finally, Empowered Funds LLC increased its position in shares of Surgery Partners by 11.0% during the first quarter. Empowered Funds LLC now owns 12,853 shares of the company's stock valued at $305,000 after buying an additional 1,278 shares during the period.

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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