Tenet Healthcare (NYSE:THC) Hits New 1-Year High After 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) reached a new 52-week high during mid-day trading 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.

THC has been the subject of several other reports. Wolfe Research downgraded shares of Tenet Healthcare from an "outperform" rating to a "peer perform" rating in a research note on Monday, July 28th. JPMorgan Chase & Co. raised their target price on shares of Tenet Healthcare from $190.00 to $200.00 and gave the stock an "overweight" rating in a report on Monday, August 4th. Raymond James Financial reaffirmed an "outperform" rating and issued a $200.00 price objective (up previously from $185.00) on shares of Tenet Healthcare in a report on Wednesday, July 23rd. Guggenheim lifted their price objective on shares of Tenet Healthcare from $180.00 to $188.00 and gave the company a "buy" rating in a report on Wednesday, July 23rd. Finally, Robert W. Baird dropped their target price on shares of Tenet Healthcare from $195.00 to $167.00 and set a "neutral" rating on the stock in a research report on Friday, July 25th. 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's stock. According to MarketBeat, the stock has a consensus rating of "Moderate Buy" and an average target price of $195.50.

Insider Buying and Selling

In related news, CEO Saumya Sutaria sold 78,762 shares of the business's stock in a transaction dated Wednesday, September 10th. The shares were sold at an average price of $190.78, for a total transaction of $15,026,214.36. Following the transaction, the chief executive officer directly owned 368,683 shares in the company, valued at approximately $70,337,342.74. The trade was a 17.60% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which can be accessed through the SEC website. Also, Director Christopher S. Lynch sold 3,952 shares of the business's stock in a transaction dated Tuesday, August 19th. The stock was sold at an average price of $176.39, for a total transaction of $697,093.28. Following the transaction, the director owned 12,358 shares in the company, valued at $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. Over the last three months, insiders have sold 90,722 shares of company stock worth $17,161,015. 0.81% of the stock is owned by insiders.

Hedge Funds Weigh In On Tenet Healthcare

Several institutional investors and hedge funds have recently bought and sold shares of the company. Osaic Holdings Inc. boosted its holdings in Tenet Healthcare by 14.7% in the 2nd quarter. Osaic Holdings Inc. now owns 12,667 shares of the company's stock valued at $2,176,000 after purchasing an additional 1,622 shares during the last quarter. China Universal Asset Management Co. Ltd. lifted its holdings in shares of Tenet Healthcare by 22.8% in the 2nd quarter. China Universal Asset Management Co. Ltd. now owns 9,000 shares of the company's stock worth $1,584,000 after acquiring an additional 1,669 shares during the last quarter. Orion Porfolio Solutions LLC acquired a new position in shares of Tenet Healthcare in the 2nd quarter worth approximately $273,000. Thrivent Financial for Lutherans lifted its holdings in shares of Tenet Healthcare by 12.8% in the 2nd quarter. Thrivent Financial for Lutherans now owns 73,685 shares of the company's stock worth $12,954,000 after acquiring an additional 8,349 shares during the last quarter. Finally, B. Riley Wealth Advisors Inc. acquired a new position in shares of Tenet Healthcare in the 2nd quarter worth approximately $598,000. 95.44% of the stock is currently owned by institutional investors and hedge funds.

Tenet Healthcare Stock Performance

The firm's fifty day moving average price is $173.91 and its 200 day moving average price is $155.37. The company has a current ratio of 1.71, a quick ratio of 1.63 and a debt-to-equity ratio of 2.39. The stock has a market capitalization of $16.65 billion, a price-to-earnings ratio of 12.07, a price-to-earnings-growth ratio of 0.83 and a beta of 1.55.

Tenet Healthcare (NYSE:THC - Get Free Report) last issued its quarterly earnings data 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 net margin of 7.17% and a return on equity of 24.69%. The firm had revenue of $5.27 billion for the quarter, compared to analyst estimates of $5.16 billion. During the same period in the prior year, the business posted $2.31 EPS. The business'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. Analysts forecast that Tenet Healthcare Corporation will post 12.24 EPS for the current fiscal 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.