Tenet Healthcare (NYSE:THC) Shares Gap Down - What's Next?

Shares of Tenet Healthcare Co. (NYSE:THC - Get Free Report) gapped down before the market opened on Wednesday . The stock had previously closed at $156.56, but opened at $153.12. Tenet Healthcare shares last traded at $160.57, with a volume of 814,829 shares trading hands.

Analysts Set New Price Targets

Several analysts have issued reports on the stock. The Goldman Sachs Group increased their target price on shares of Tenet Healthcare from $134.00 to $154.00 and gave the stock a "neutral" rating in a research note on Monday, May 5th. Royal Bank of Canada increased their target price on shares of Tenet Healthcare from $183.00 to $189.00 and gave the stock an "outperform" rating in a research note on Wednesday, April 30th. Stephens upgraded shares of Tenet Healthcare to a "strong-buy" rating in a research note on Monday, June 2nd. Wall Street Zen cut shares of Tenet Healthcare from a "buy" rating to a "hold" rating in a research note on Saturday, June 7th. Finally, TD Cowen assumed coverage on shares of Tenet Healthcare in a research note on Wednesday, February 26th. They issued a "buy" rating and a $175.00 target price on the stock. Four analysts have rated the stock with a hold rating, fifteen have assigned a buy rating and one has assigned a strong buy rating to the company's stock. Based on data from MarketBeat.com, the company currently has a consensus rating of "Moderate Buy" and a consensus price target of $182.24.

Tenet Healthcare Stock Performance

The firm has a market cap of $15.25 billion, a P/E ratio of 5.10, a price-to-earnings-growth ratio of 1.02 and a beta of 1.65. The company has a current ratio of 1.78, a quick ratio of 1.70 and a debt-to-equity ratio of 2.25. The business's fifty day simple moving average is $148.09 and its 200-day simple moving average is $137.62.

Tenet Healthcare (NYSE:THC - Get Free Report) last announced its quarterly earnings results on Tuesday, April 29th. The company reported $4.36 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $3.11 by $1.25. The business had revenue of $5.22 billion for the quarter, compared to analyst estimates of $5.15 billion. Tenet Healthcare had a net margin of 15.48% and a return on equity of 21.88%. The company's revenue was down 2.5% on a year-over-year basis. During the same quarter last year, the firm earned $3.22 EPS. As a group, sell-side analysts expect that Tenet Healthcare Co. will post 12.24 earnings per share for the current year.

Insider Activity

In related news, Director James L. Bierman sold 13,836 shares of Tenet Healthcare stock in a transaction dated Friday, May 23rd. The shares were sold at an average price of $159.58, for a total transaction of $2,207,948.88. Following the completion of the transaction, the director now directly owns 41,435 shares of the company's stock, valued at $6,612,197.30. This trade represents a 25.03% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is available at this hyperlink. Also, Director J Robert Kerrey sold 5,001 shares of Tenet Healthcare stock in a transaction dated Friday, May 9th. The shares were sold at an average price of $148.50, for a total transaction of $742,648.50. Following the transaction, the director now directly owns 22,377 shares of the company's stock, valued at approximately $3,322,984.50. This trade represents a 18.27% decrease in their ownership of the stock. The disclosure for this sale can be found here. In the last 90 days, insiders have sold 54,121 shares of company stock valued at $8,846,305. Corporate insiders own 0.81% of the company's stock.

Institutional Inflows and Outflows

A number of large investors have recently bought and sold shares of THC. Strs Ohio purchased a new position in Tenet Healthcare in the first quarter worth about $1,550,000. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC raised its holdings in Tenet Healthcare by 4.9% in the first quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 276,969 shares of the company's stock worth $37,252,000 after buying an additional 12,914 shares during the last quarter. Empowered Funds LLC raised its holdings in Tenet Healthcare by 19.6% in the first quarter. Empowered Funds LLC now owns 154,754 shares of the company's stock worth $20,814,000 after buying an additional 25,323 shares during the last quarter. United Services Automobile Association purchased a new position in Tenet Healthcare in the first quarter worth about $821,000. Finally, Fred Alger Management LLC purchased a new position in Tenet Healthcare in the first quarter worth about $2,652,000. 95.44% of the stock is owned by hedge funds and other institutional investors.

About Tenet Healthcare

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.