Tenet Healthcare (NYSE:THC) Shares Gap Down - Here's What Happened

Key Points

• Tenet Healthcare shares gapped down about 6.3% after opening at $185.00 versus the prior close of $194.81, with the stock last trading near $185.13.
• Despite the pullback, Wall Street sentiment remains mostly positive: 18 analysts rate the stock a Buy, 4 rate it Hold, and the consensus price target is $245.37.
• The company recently reported strong quarterly earnings of $4.82 per share, beating estimates, while insiders also sold shares and institutions continue to own the vast majority of the stock.

Shares of Tenet Healthcare Corporation (NYSE:THC - Get Free Report) gapped down prior to trading on Tuesday . The stock had previously closed at $194.81, but opened at $185.00. Tenet Healthcare shares last traded at $185.1310, with a volume of 437,026 shares trading hands.

Wall Street Analyst Weigh In

Several equities research analysts recently issued reports on THC shares. Morgan Stanley set a $254.00 price target on Tenet Healthcare in a research note on Friday, May 1st. KeyCorp reduced their target price on Tenet Healthcare from $250.00 to $225.00 and set an "overweight" rating on the stock in a report on Friday, May 1st. Wells Fargo & Company boosted their price target on Tenet Healthcare from $213.00 to $231.00 and gave the company an "overweight" rating in a research note on Monday. Wall Street Zen lowered shares of Tenet Healthcare from a "strong-buy" rating to a "buy" rating in a research report on Monday, May 11th. Finally, Royal Bank Of Canada lowered their price objective on shares of Tenet Healthcare from $277.00 to $236.00 and set an "outperform" rating for the company in a research report on Friday, May 1st. Eighteen investment analysts have rated the stock with a Buy rating and four have issued a Hold rating to the company's stock. Based on data from MarketBeat.com, the company presently has a consensus rating of "Moderate Buy" and an average price target of $245.37.

Tenet Healthcare Stock Down 6.3%

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 stock has a market capitalization of $15.72 billion, a P/E ratio of 9.48, a P/E/G ratio of 1.68 and a beta of 1.27. The firm has a 50-day simple moving average of $184.26 and a 200 day simple moving average of $197.65.

Tenet Healthcare (NYSE:THC - Get Free Report) last issued its quarterly earnings results on Thursday, April 30th. The company reported $4.82 earnings per share for the quarter, topping analysts' consensus estimates of $4.21 by $0.61. Tenet Healthcare had a return on equity of 25.55% and a net margin of 7.94%.The firm had revenue of $5.37 billion during the quarter, compared to the consensus estimate of $5.39 billion. During the same period last year, the business posted $4.36 EPS. The business's revenue was up 2.6% compared to the same quarter last year. Tenet Healthcare has set its FY 2026 guidance at 16.380-18.68 EPS. On average, equities research analysts forecast that Tenet Healthcare Corporation will post 17.61 EPS for the current year.

Insider Activity 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 stock was sold at an average price of $177.35, for a total value of $532,050.00. Following the completion of the sale, the director 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 ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is accessible through this hyperlink. Also, Director J Robert Kerrey sold 5,638 shares of Tenet Healthcare stock in a transaction on Thursday, May 28th. The shares were sold at an average price of $174.52, for a total transaction of $983,943.76. Following the completion of the sale, the director directly owned 16,804 shares of the company's stock, valued at approximately $2,932,634.08. The trade was a 25.12% decrease in their position. The SEC filing for this sale provides additional information. 0.97% of the stock is currently owned by corporate insiders.

Institutional Investors Weigh In On Tenet Healthcare

Several large investors have recently added to or reduced their stakes in the company. Triumph Capital Management purchased a new stake in Tenet Healthcare during the third quarter valued at about $25,000. Activest Wealth Management bought a new stake in shares of Tenet Healthcare in the fourth quarter valued at approximately $26,000. Elyxium Wealth LLC purchased a new stake in shares of Tenet Healthcare during the 4th quarter valued at approximately $29,000. Meeder Asset Management Inc. boosted its holdings in Tenet Healthcare by 146.2% in the 4th quarter. Meeder Asset Management Inc. now owns 192 shares of the company's stock worth $38,000 after buying an additional 114 shares during the period. Finally, Canada Pension Plan Investment Board bought a new stake in Tenet Healthcare during the 2nd quarter valued at $35,000. Hedge funds and other 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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