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

Key Points

• Wall Street Zen downgraded Tenet Healthcare from “strong buy” to “buy,” though the broader analyst consensus remains “Moderate Buy” with an average price target of $273.
• Tenet reported quarterly earnings of $6.12 per share, beating estimates of $4.26, while revenue rose 6.8% year over year to $6.04 billion.
• The stock opened at $267.23, near its 52-week high of $270.57; institutional investors own 95.44% of the shares, while insiders have sold nearly $9.8 million in stock over the past 90 days.

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

A number of other research analysts have also recently weighed in on the company. Raymond James Financial reiterated an "outperform" rating and issued a $285.00 target price on shares of Tenet Healthcare in a report on Friday. Mizuho set a $290.00 price target on Tenet Healthcare in a research note on Monday. Zacks Research raised Tenet Healthcare from a "hold" rating to a "strong-buy" rating in a research note on Tuesday. Stephens reiterated an "overweight" rating and set a $285.00 target price on shares of Tenet Healthcare in a report on Monday, July 27th. Finally, Cantor Fitzgerald restated an "overweight" rating on shares of Tenet Healthcare in a report on Monday, July 27th. One research analyst has rated the stock with a Strong Buy rating, eighteen have assigned a Buy rating and two have issued a Hold rating to the company. According to data from MarketBeat.com, Tenet Healthcare presently has an average rating of "Moderate Buy" and a consensus target price of $273.00.

Tenet Healthcare Price Performance

Tenet Healthcare stock opened at $267.23 on Friday. Tenet Healthcare has a 1 year low of $157.58 and a 1 year high of $270.57. The company has a debt-to-equity ratio of 2.00, a quick ratio of 1.35 and a current ratio of 1.41. The firm has a 50 day moving average price of $210.20 and a 200 day moving average price of $203.93. The company has a market cap of $21.52 billion, a price-to-earnings ratio of 10.31, a PEG ratio of 1.02 and a beta of 1.23.

Tenet Healthcare (NYSE:THC - Get Free Report) last posted its quarterly earnings results on Thursday, July 23rd. The company reported $6.12 earnings per share for the quarter, topping analysts' consensus estimates of $4.26 by $1.86. Tenet Healthcare had a net margin of 10.27% and a return on equity of 26.76%. The company had revenue of $6.04 billion for the quarter, compared to the consensus estimate of $5.43 billion. During the same quarter last year, the firm posted $4.02 earnings per share. Tenet Healthcare's revenue was up 6.8% on a year-over-year basis. Tenet Healthcare has set its FY 2026 guidance at 20.300-21.690 EPS. Sell-side analysts predict that Tenet Healthcare will post 21.07 earnings per share for the current year.

Insider Activity at Tenet Healthcare

In related news, Director Christopher S. Lynch sold 3,837 shares of the business's stock in a transaction that occurred on Monday, July 27th. The stock was sold at an average price of $243.44, for a total transaction of $934,079.28. Following the transaction, the director directly owned 9,568 shares of the company's stock, valued at approximately $2,329,233.92. The trade was a 28.62% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is accessible through the SEC website. Also, Director J Robert Kerrey sold 5,638 shares of the company's stock in a transaction that occurred on Thursday, May 28th. The stock was sold at an average price of $174.52, for a total value of $983,943.76. Following the completion of the transaction, the director owned 16,804 shares of the company's stock, valued at approximately $2,932,634.08. This represents a 25.12% decrease in their position. The SEC filing for this sale provides additional information. Insiders have sold a total of 41,375 shares of company stock valued at $9,793,347 over the last 90 days. Corporate insiders own 0.97% of the company's stock.

Institutional Inflows and Outflows

Several institutional investors and hedge funds have recently made changes to their positions in the company. Norges Bank purchased a new stake in Tenet Healthcare during the 4th quarter worth $248,494,000. Wellington Management Group LLP boosted its position in Tenet Healthcare by 1,114.2% in the 4th quarter. Wellington Management Group LLP now owns 1,135,801 shares of the company's stock valued at $225,706,000 after buying an additional 1,042,260 shares during the last quarter. Manning & Napier Advisors LLC acquired a new stake in shares of Tenet Healthcare during the second quarter valued at about $168,761,000. Boston Partners increased its position in shares of Tenet Healthcare by 38.8% during the third quarter. Boston Partners now owns 3,147,555 shares of the company's stock worth $638,958,000 after acquiring an additional 880,413 shares during the last quarter. Finally, AQR Capital Management LLC lifted its stake in shares of Tenet Healthcare by 62.3% in the third quarter. AQR Capital Management LLC now owns 1,876,423 shares of the company's stock worth $380,989,000 after acquiring an additional 720,160 shares in the last quarter. 95.44% of the stock is currently owned by hedge funds and other institutional investors.

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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