Tenet Healthcare (NYSE:THC) Shares Gap Up Following Earnings Beat

Tenet Healthcare Co. (NYSE:THC - Get Free Report)'s stock price gapped up prior to trading on Tuesday after the company announced better than expected quarterly earnings. The stock had previously closed at $123.91, but opened at $128.00. Tenet Healthcare shares last traded at $132.41, with a volume of 441,425 shares trading hands.

The company reported $4.36 earnings per share for the quarter, beating analysts' consensus estimates of $3.11 by $1.25. The business had revenue of $5.22 billion during the quarter, compared to the consensus estimate of $5.15 billion. Tenet Healthcare had a return on equity of 21.88% and a net margin of 15.48%. Tenet Healthcare's quarterly revenue was down 2.5% on a year-over-year basis. During the same period in the prior year, the business posted $3.22 earnings per share.

Analyst Upgrades and Downgrades

Several brokerages recently issued reports on THC. Guggenheim assumed coverage on Tenet Healthcare in a report on Wednesday, April 9th. They set a "buy" rating and a $165.00 price target for the company. Royal Bank of Canada increased their target price on shares of Tenet Healthcare from $183.00 to $189.00 and gave the company an "outperform" rating in a report on Wednesday. KeyCorp cut their price target on shares of Tenet Healthcare from $200.00 to $185.00 and set an "overweight" rating on the stock in a report on Tuesday, January 7th. Cantor Fitzgerald restated an "overweight" rating and issued a $177.00 target price on shares of Tenet Healthcare in a research note on Thursday, February 13th. Finally, TD Cowen assumed coverage on Tenet Healthcare in a research report on Wednesday, February 26th. They set a "buy" rating and a $175.00 price target for the company. Four research analysts have rated the stock with a hold rating and fourteen have issued a buy rating to the company. According to data from MarketBeat.com, the stock currently has a consensus rating of "Moderate Buy" and an average price target of $172.19.

Insider Buying and Selling at Tenet Healthcare

In related news, Director J Robert Kerrey sold 9,525 shares of the company's stock in a transaction that occurred on Tuesday, March 11th. The shares were sold at an average price of $125.43, for a total value of $1,194,720.75. Following the transaction, the director now directly owns 27,378 shares in the company, valued at approximately $3,434,022.54. This represents a 25.81 % decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through the SEC website. Insiders own 0.81% of the company's stock.

Hedge Funds Weigh In On Tenet Healthcare

A number of institutional investors have recently made changes to their positions in the stock. Loring Wolcott & Coolidge Fiduciary Advisors LLP MA purchased a new stake in Tenet Healthcare during the first quarter valued at about $26,000. Wayfinding Financial LLC bought a new stake in Tenet Healthcare in the 1st quarter worth approximately $28,000. Colonial Trust Co SC grew its position in Tenet Healthcare by 85.7% during the fourth quarter. Colonial Trust Co SC now owns 247 shares of the company's stock valued at $31,000 after acquiring an additional 114 shares during the last quarter. GeoWealth Management LLC lifted its holdings in shares of Tenet Healthcare by 39.8% in the 4th quarter. GeoWealth Management LLC now owns 295 shares of the company's stock worth $37,000 after acquiring an additional 84 shares during the last quarter. Finally, WR Wealth Planners LLC boosted its stake in shares of Tenet Healthcare by 2,836.4% in the 4th quarter. WR Wealth Planners LLC now owns 323 shares of the company's stock valued at $41,000 after purchasing an additional 312 shares in the last quarter. Institutional investors own 95.44% of the company's stock.

Tenet Healthcare Price Performance

The firm has a market capitalization of $13.99 billion, a P/E ratio of 4.60, a P/E/G ratio of 1.02 and a beta of 1.77. The firm's 50 day simple moving average is $127.09 and its two-hundred day simple moving average is $136.47. The company has a debt-to-equity ratio of 2.25, a current ratio of 1.78 and a quick ratio of 1.70.

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.