Tenet Healthcare (NYSE:THC) Reaches New 52-Week High After Better-Than-Expected Earnings

Key Points

• Tenet Healthcare shares hit a new 52-week high, reaching $248.04 after the company reported quarterly earnings of $6.12 per share, well above the $4.26 consensus estimate. Revenue rose 6.8% year over year to $6.04 billion, also exceeding expectations.
• Analyst sentiment remains positive, with 17 Buy ratings and four Holds producing a consensus “Moderate Buy” rating and an average price target of $257.90. TD Cowen and Morgan Stanley raised their targets, while Piper Sandler set a $308 target.
• Insiders sold shares, including directors Nadja West and J. Robert Kerrey, while institutional investors own 95.44% of the stock. Tenet has a $21.39 billion market capitalization and trades at a price-to-earnings ratio of 9.58.

Tenet Healthcare Corporation (NYSE:THC - Get Free Report) reached a new 52-week high during trading on Monday following a better than expected earnings announcement. The stock traded as high as $248.04 and last traded at $247.9250, with a volume of 1050291 shares trading hands. The stock had previously closed at $233.20.

The company reported $6.12 earnings per share for the quarter, beating the consensus estimate of $4.26 by $1.86. Tenet Healthcare had a return on equity of 26.76% and a net margin of 10.27%.The company had revenue of $6.04 billion for the quarter, compared to the consensus estimate of $5.43 billion. During the same period in the previous year, the business earned $4.02 earnings per share. Tenet Healthcare's quarterly revenue was up 6.8% compared to the same quarter last year.

Wall Street Analyst Weigh In

A number of equities analysts have recently commented on THC shares. TD Cowen lifted their target price on Tenet Healthcare from $233.00 to $263.00 and gave the stock a "buy" rating in a report on Monday. Wall Street Zen raised Tenet Healthcare from a "hold" rating to a "buy" rating in a research note on Sunday. KeyCorp dropped their target price on shares of Tenet Healthcare from $250.00 to $225.00 and set an "overweight" rating on the stock in a report on Friday, May 1st. Piper Sandler set a $308.00 price target on shares of Tenet Healthcare in a report on Monday. Finally, Morgan Stanley increased their price objective on shares of Tenet Healthcare from $254.00 to $274.00 and gave the company an "overweight" rating in a research note on Monday. Seventeen analysts have rated the stock with a Buy rating and four have given a Hold rating to the stock. According to data from MarketBeat.com, the stock presently has an average rating of "Moderate Buy" and a consensus target price of $257.90.

Insider Transactions at Tenet Healthcare

In other Tenet Healthcare news, Director Nadja West sold 3,000 shares of the firm's stock in a transaction that occurred on Wednesday, May 27th. The shares were sold at an average price of $177.35, for a total transaction of $532,050.00. Following the completion of the transaction, the director directly owned 24,805 shares of the company's stock, valued at approximately $4,399,166.75. This trade represents a 10.79% decrease in their position. The transaction was disclosed in a filing with the SEC, which can be accessed through this link. Also, Director J Robert Kerrey sold 5,638 shares of the stock in a transaction dated Thursday, May 28th. The stock was sold at an average price of $174.52, for a total value of $983,943.76. Following the sale, the director directly owned 16,804 shares in the company, valued at $2,932,634.08. This represents a 25.12% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. 0.97% of the stock is currently owned by corporate insiders.

Institutional Trading of Tenet Healthcare

Several large investors have recently made changes to their positions in the company. NewEdge Advisors LLC boosted its position in Tenet Healthcare by 6.1% during the first quarter. NewEdge Advisors LLC now owns 2,890 shares of the company's stock worth $389,000 after acquiring an additional 166 shares during the last quarter. Jones Financial Companies Lllp raised its position in Tenet Healthcare by 299.1% in the first quarter. Jones Financial Companies Lllp now owns 1,700 shares of the company's stock valued at $229,000 after purchasing an additional 1,274 shares during the period. Sivia Capital Partners LLC purchased a new position in shares of Tenet Healthcare in the second quarter valued at approximately $290,000. Quantbot Technologies LP purchased a new stake in shares of Tenet Healthcare during the second quarter worth $65,000. Finally, Amundi increased its stake in shares of Tenet Healthcare by 4,207.8% during the second quarter. Amundi now owns 27,010 shares of the company's stock worth $4,652,000 after buying an additional 26,383 shares during the period. 95.44% of the stock is currently owned by hedge funds and other institutional investors.

Tenet Healthcare Trading Up 6.5%

The company's 50-day moving average price is $185.16 and its 200-day moving average price is $197.55. 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 market capitalization of $21.39 billion, a PE ratio of 9.58, a PEG ratio of 1.61 and a beta of 1.27.

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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