Surgery Partners (NASDAQ:SGRY) Upgraded by Zacks Research to "Strong-Buy" Rating

Key Points

• Zacks Research upgraded Surgery Partners (NASDAQ: SGRY) from “hold” to “strong-buy,” adding to a broadly positive analyst backdrop. The consensus rating remains “Moderate Buy,” with an average price target of $22.18.
• The company beat earnings and revenue expectations in its latest quarterly report, posting EPS of -$0.03 versus the expected -$0.15 and revenue of $810.9 million versus $797.69 million expected. Revenue rose 4.5% year over year.
• Surgery Partners authorized a $200 million stock buyback, covering up to 9.7% of shares, which can signal management believes the stock is undervalued. The article also notes recent insider share sales and mixed institutional activity.

Surgery Partners (NASDAQ:SGRY - Get Free Report) was upgraded by equities researchers at Zacks Research from a "hold" rating to a "strong-buy" rating in a research note issued to investors on Thursday,Zacks.com reports.

Other research analysts have also recently issued research reports about the company. UBS Group reissued a "buy" rating on shares of Surgery Partners in a research note on Wednesday, March 11th. US Capital Advisors set a $21.00 price objective on shares of Surgery Partners in a research note on Wednesday, March 11th. Mizuho decreased their target price on Surgery Partners from $19.00 to $17.00 and set an "outperform" rating for the company in a research note on Thursday, March 5th. Jefferies Financial Group reaffirmed a "buy" rating and set a $17.00 target price on shares of Surgery Partners in a research note on Wednesday, May 6th. Finally, Royal Bank Of Canada decreased their price target on Surgery Partners from $31.00 to $20.00 and set an "outperform" rating for the company in a research report on Wednesday, March 4th. One research analyst has rated the stock with a Strong Buy rating, eight have assigned a Buy rating, two have assigned a Hold rating and one has issued a Sell rating to the company's stock. According to MarketBeat.com, the company currently has a consensus rating of "Moderate Buy" and an average price target of $22.18.

Surgery Partners Price Performance

Shares of NASDAQ SGRY opened at $13.71 on Thursday. Surgery Partners has a twelve month low of $11.41 and a twelve month high of $24.10. The company has a current ratio of 1.86, a quick ratio of 1.69 and a debt-to-equity ratio of 1.17. The company has a market capitalization of $1.79 billion, a price-to-earnings ratio of -22.85, a price-to-earnings-growth ratio of 5.27 and a beta of 1.96. The business has a 50 day simple moving average of $13.48 and a 200-day simple moving average of $14.56.

Surgery Partners (NASDAQ:SGRY - Get Free Report) last issued its quarterly earnings data on Tuesday, May 5th. The company reported ($0.03) EPS for the quarter, topping analysts' consensus estimates of ($0.15) by $0.12. The firm had revenue of $810.90 million during the quarter, compared to the consensus estimate of $797.69 million. Surgery Partners had a positive return on equity of 1.04% and a negative net margin of 2.28%.The firm's revenue was up 4.5% on a year-over-year basis. During the same period in the prior year, the business earned $0.04 EPS. As a group, equities research analysts expect that Surgery Partners will post 0.19 earnings per share for the current year.

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

Insider Activity

In related news, CEO Jason Eric Evans sold 20,400 shares of Surgery Partners stock in a transaction dated Monday, March 16th. The shares were sold at an average price of $12.47, for a total transaction of $254,388.00. Following the completion of the transaction, the chief executive officer directly owned 920,386 shares of the company's stock, valued at $11,477,213.42. This trade represents a 2.17% decrease in their position. The sale was disclosed in a document filed with the SEC, which is available at this hyperlink. Also, insider Jennifer Baldock sold 5,798 shares of Surgery Partners stock in a transaction 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 transaction, the insider owned 326,474 shares of the company's stock, valued at approximately $4,299,662.58. The trade was a 1.74% decrease in their position. The SEC filing for this sale provides additional information. Insiders sold a total of 42,191 shares of company stock worth $531,951 over the last ninety days. Corporate insiders own 2.00% of the company's stock.

Hedge Funds Weigh In On Surgery Partners

Several institutional investors have recently bought and sold shares of the business. State of Wisconsin Investment Board raised its position 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 valued at $2,341,000 after purchasing an additional 668 shares during the last quarter. ProShare Advisors LLC raised its position in shares of Surgery Partners by 6.9% during the fourth quarter. ProShare Advisors LLC now owns 14,135 shares of the company's stock worth $218,000 after acquiring an additional 909 shares during the last quarter. Jones Financial Companies Lllp raised its position in shares of Surgery Partners by 313.1% during the third quarter. Jones Financial Companies Lllp now owns 1,227 shares of the company's stock worth $27,000 after acquiring an additional 930 shares during the last quarter. California State Teachers Retirement System raised its position in shares of Surgery Partners by 1.6% during the second quarter. California State Teachers Retirement System now owns 65,091 shares of the company's stock worth $1,447,000 after acquiring an additional 1,021 shares during the last quarter. Finally, Sanctuary Advisors LLC raised 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 worth $440,000 after acquiring an additional 1,218 shares during the last quarter.

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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