Tenet Healthcare (NYSE:THC) Reaches New 12-Month High on Analyst Upgrade

Key Points

• Tenet Healthcare reached a new 52-week high after Bank of America upgraded its price target from $205.00 to $225.00, maintaining a buy rating on the stock.
• Other analysts have also shown positive sentiment, with several brokerages raising their price targets and ratings for Tenet Healthcare, resulting in a consensus average rating of "Moderate Buy."
• Insider activity has been notable, with significant share sales from executives, indicating a decrease in their ownership stakes in the company.

Tenet Healthcare Corporation (NYSE:THC - Get Free Report)'s stock price hit a new 52-week high on Wednesday after Bank of America raised their price target on the stock from $205.00 to $225.00. Bank of America currently has a buy rating on the stock. Tenet Healthcare traded as high as $199.99 and last traded at $197.77, with a volume of 82647 shares trading hands. The stock had previously closed at $196.39.

Several other brokerages have also issued reports on THC. Raymond James Financial reaffirmed an "outperform" rating and set a $200.00 price target (up previously from $185.00) on shares of Tenet Healthcare in a research note on Wednesday, July 23rd. Guggenheim upped their price target on Tenet Healthcare from $180.00 to $188.00 and gave the company a "buy" rating in a research note on Wednesday, July 23rd. Wall Street Zen raised Tenet Healthcare from a "hold" rating to a "strong-buy" rating in a research note on Saturday, July 26th. Stephens raised Tenet Healthcare to a "strong-buy" rating in a research note on Monday, June 2nd. Finally, Barclays cut their target price on Tenet Healthcare from $215.00 to $208.00 and set an "overweight" rating on the stock in a research note on Thursday, July 24th. One investment analyst has rated the stock with a Strong Buy rating, fourteen have given a Buy rating and four have given a Hold rating to the company. According to MarketBeat, Tenet Healthcare presently has an average rating of "Moderate Buy" and an average target price of $195.50.

Insider Activity

In related news, EVP Lisa Y. Foo sold 8,000 shares of the stock in a transaction dated Wednesday, August 20th. The stock was sold at an average price of $179.53, for a total transaction of $1,436,240.00. Following the completion of the transaction, the executive vice president directly owned 20,878 shares in the company, valued at approximately $3,748,227.34. This trade represents a 27.70% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, Director Christopher S. Lynch sold 3,952 shares of the stock in a transaction dated Tuesday, August 19th. The stock was sold at an average price of $176.39, for a total value of $697,093.28. Following the transaction, the director owned 12,358 shares of the company's stock, valued at approximately $2,179,827.62. The trade was a 24.23% decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders sold 11,960 shares of company stock valued at $2,134,801 over the last 90 days. Corporate insiders own 0.81% of the company's stock.

Institutional Inflows and Outflows

Hedge funds have recently modified their holdings of the company. Cambridge Investment Research Advisors Inc. acquired a new position in shares of Tenet Healthcare during the 1st quarter worth approximately $212,000. Envestnet Asset Management Inc. increased its position in shares of Tenet Healthcare by 3.3% during the 1st quarter. Envestnet Asset Management Inc. now owns 203,582 shares of the company's stock worth $27,382,000 after purchasing an additional 6,424 shares during the last quarter. Mirae Asset Global Investments Co. Ltd. increased its position in shares of Tenet Healthcare by 65.5% during the 1st quarter. Mirae Asset Global Investments Co. Ltd. now owns 1,420 shares of the company's stock worth $189,000 after purchasing an additional 562 shares during the last quarter. GAMMA Investing LLC increased its position in shares of Tenet Healthcare by 28.1% during the 1st quarter. GAMMA Investing LLC now owns 1,430 shares of the company's stock worth $192,000 after purchasing an additional 314 shares during the last quarter. Finally, Janney Montgomery Scott LLC acquired a new position in shares of Tenet Healthcare during the 1st quarter worth approximately $1,986,000. 95.44% of the stock is currently owned by institutional investors.

Tenet Healthcare Price Performance

The company has a debt-to-equity ratio of 2.39, a quick ratio of 1.63 and a current ratio of 1.71. The company has a 50-day simple moving average of $172.66 and a two-hundred day simple moving average of $153.96. The stock has a market cap of $16.68 billion, a price-to-earnings ratio of 12.09, a price-to-earnings-growth ratio of 0.82 and a beta of 1.55.

Tenet Healthcare (NYSE:THC - Get Free Report) last issued its earnings results on Tuesday, July 22nd. The company reported $4.02 EPS for the quarter, topping the consensus estimate of $2.84 by $1.18. Tenet Healthcare had a return on equity of 24.69% and a net margin of 7.17%.The company had revenue of $5.27 billion during the quarter, compared to the consensus estimate of $5.16 billion. During the same period in the previous year, the company posted $2.31 EPS. The firm's revenue for the quarter was up 3.2% compared to the same quarter last year. Tenet Healthcare has set its FY 2025 guidance at 15.550-16.210 EPS. As a group, equities research analysts forecast that Tenet Healthcare Corporation will post 12.24 EPS for the current year.

Tenet Healthcare Company Profile

Tenet Healthcare Corporation operates as a diversified healthcare services company in the United States. The company operates through two segments: Hospital Operations and Services, and Ambulatory Care. Its general hospitals offer acute care services, operating and recovery rooms, radiology and respiratory therapy services, clinical laboratories, and pharmacies.

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