Tenet Healthcare (NYSE:THC) Lowered to "Buy" Rating by Wall Street Zen

Key Points

• Tenet Healthcare was downgraded by Wall Street Zen from “strong-buy” to “buy”, though the broader analyst picture remains positive with a Moderate Buy consensus and a consensus price target of $244.16.
• The company reported better-than-expected quarterly earnings, posting $4.82 EPS versus estimates of $4.21, while revenue came in slightly below forecasts at $5.37 billion.
• Recent activity included insider selling and continued heavy institutional ownership, with institutions holding 95.44% of the stock and insiders selling shares worth about $10.94 million over the last quarter.

Tenet Healthcare (NYSE:THC - Get Free Report) was downgraded by analysts at Wall Street Zen from a "strong-buy" rating to a "buy" rating in a research note issued to investors on Monday.

A number of other equities research analysts also recently weighed in on the company. Truist Financial lifted their target price on Tenet Healthcare from $240.00 to $270.00 and gave the stock a "buy" rating in a report on Tuesday, February 17th. Guggenheim dropped their target price on Tenet Healthcare from $283.00 to $252.00 and set a "buy" rating for the company in a report on Friday, May 1st. Barclays dropped their target price on Tenet Healthcare from $257.00 to $238.00 and set an "overweight" rating for the company in a report on Tuesday, May 5th. Robert W. Baird decreased their price target on Tenet Healthcare from $245.00 to $210.00 and set a "neutral" rating on the stock in a research report on Tuesday, May 5th. Finally, Cantor Fitzgerald restated an "overweight" rating on shares of Tenet Healthcare in a research report on Wednesday, March 4th. Nineteen research analysts have rated the stock with a Buy rating and three have issued a Hold rating to the stock. According to MarketBeat.com, Tenet Healthcare presently has a consensus rating of "Moderate Buy" and a consensus price target of $244.16.

Tenet Healthcare Trading Down 0.0%

THC stock opened at $190.37 on Monday. The company has a debt-to-equity ratio of 1.96, a current ratio of 1.36 and a quick ratio of 1.30. The company has a fifty day moving average price of $204.80 and a two-hundred day moving average price of $204.17. Tenet Healthcare has a one year low of $146.60 and a one year high of $247.21. The stock has a market cap of $16.40 billion, a price-to-earnings ratio of 9.90, a price-to-earnings-growth ratio of 1.27 and a beta of 1.30.

Tenet Healthcare (NYSE:THC - Get Free Report) last released its quarterly earnings data on Thursday, April 30th. The company reported $4.82 EPS for the quarter, topping analysts' consensus estimates of $4.21 by $0.61. The firm had revenue of $5.37 billion during the quarter, compared to analysts' expectations of $5.39 billion. Tenet Healthcare had a net margin of 7.94% and a return on equity of 25.55%. The company's revenue for the quarter was up 2.6% compared to the same quarter last year. During the same period in the previous year, the business posted $4.36 earnings per share. Tenet Healthcare has set its FY 2026 guidance at 16.380-18.68 EPS. Equities analysts anticipate that Tenet Healthcare will post 17.56 EPS for the current year.

Insider Buying and Selling

In related news, insider R. Scott Ramsey sold 8,017 shares of the firm's stock in a transaction on Monday, March 2nd. The stock was sold at an average price of $232.70, for a total value of $1,865,555.90. The sale was disclosed in a legal filing with the SEC, which is available at this hyperlink. Also, EVP Thomas W. Arnst sold 24,000 shares of the firm's stock in a transaction on Monday, March 2nd. The stock was sold at an average price of $234.04, for a total value of $5,616,960.00. Following the completion of the transaction, the executive vice president owned 8,012 shares in the company, valued at $1,875,128.48. The trade was a 74.97% decrease in their position. The disclosure for this sale is available in the SEC filing. Over the last quarter, insiders have sold 46,517 shares of company stock worth $10,943,111. Company insiders own 0.81% of the company's stock.

Institutional Inflows and Outflows

A number of hedge funds and other institutional investors have recently bought and sold shares of the business. PNC Financial Services Group Inc. grew its position in Tenet Healthcare by 10.5% in the first quarter. PNC Financial Services Group Inc. now owns 6,086 shares of the company's stock valued at $1,148,000 after acquiring an additional 580 shares during the last quarter. Parallel Advisors LLC grew its position in Tenet Healthcare by 108.9% in the first quarter. Parallel Advisors LLC now owns 1,389 shares of the company's stock valued at $262,000 after acquiring an additional 724 shares during the last quarter. Hanseatic Management Services Inc. bought a new position in Tenet Healthcare in the first quarter valued at about $326,000. AIA Group Ltd bought a new position in Tenet Healthcare in the first quarter valued at about $1,405,000. Finally, Dorsey Wright & Associates boosted its stake in shares of Tenet Healthcare by 29.4% during the first quarter. Dorsey Wright & Associates now owns 69,990 shares of the company's stock valued at $13,208,000 after purchasing an additional 15,895 shares in the last quarter. Institutional investors own 95.44% of the company's stock.

Tenet Healthcare Company Profile

Tenet Healthcare Corporation NYSE: THC is a diversified American healthcare services company that owns and operates acute care hospitals and a broad range of outpatient facilities. Its portfolio includes general acute-care hospitals, specialty hospitals, ambulatory surgery centers, urgent care and diagnostic imaging centers, and other ancillary service locations. Tenet's operations are oriented around delivering inpatient and outpatient clinical care across multiple medical specialties, with an emphasis on surgical services, emergency care, and advanced diagnostics.

In addition to facility-based care, Tenet provides integrated services designed to support clinical operations and improve patient access and care coordination.

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