UBS Group Issues Pessimistic Forecast for Surgery Partners (NASDAQ:SGRY) Stock Price

Key Points

• UBS cut its price target on Surgery Partners from $29 to $21 but kept a "buy" rating, a level that implies roughly a 51.6% upside from the stock's current price (~$13.85).
• Surgery Partners missed quarterly EPS estimates ($0.12 vs. $0.31) despite revenue beating expectations, and the company authorized a $200 million share buyback (up to ~9.7% of shares) while the stock trades near its 52-week low.
• The analyst consensus remains a "Moderate Buy" (8 Buys, 2 Holds, 1 Sell) with an average target of $24.90, even as several firms including JPMorgan and RBC have recently lowered their targets.

Surgery Partners (NASDAQ:SGRY - Get Free Report) had its price target dropped by UBS Group from $29.00 to $21.00 in a report issued on Thursday,Benzinga reports. The firm currently has a "buy" rating on the stock. UBS Group's price objective suggests a potential upside of 51.62% from the stock's current price.

Several other equities analysts have also weighed in on SGRY. Jefferies Financial Group restated a "buy" rating on shares of Surgery Partners in a research note on Wednesday. JPMorgan Chase & Co. lowered their target price on Surgery Partners from $27.00 to $20.00 and set a "neutral" rating on the stock in a report on Monday, November 24th. Cantor Fitzgerald reissued an "overweight" rating on shares of Surgery Partners in a report on Wednesday. Benchmark reiterated a "buy" rating on shares of Surgery Partners in a research report on Tuesday. Finally, Royal Bank Of Canada dropped their price target on shares of Surgery Partners from $31.00 to $20.00 and set an "outperform" rating for the company in a research report on Wednesday. Eight equities research analysts have rated the stock with a Buy rating, two have issued a Hold rating and one has assigned a Sell rating to the stock. Based on data from MarketBeat.com, the stock currently has a consensus rating of "Moderate Buy" and an average target price of $24.90.

Surgery Partners Stock Down 1.6%

Surgery Partners stock traded down $0.23 during midday trading on Thursday, reaching $13.85. The company's stock had a trading volume of 502,734 shares, compared to its average volume of 1,693,557. The stock has a market capitalization of $1.79 billion, a P/E ratio of -22.34 and a beta of 1.95. The company has a debt-to-equity ratio of 1.15, a current ratio of 1.87 and a quick ratio of 1.72. The stock's 50-day simple moving average is $15.28 and its 200-day simple moving average is $18.24. Surgery Partners has a 52-week low of $12.25 and a 52-week high of $24.64.

Surgery Partners (NASDAQ:SGRY - Get Free Report) last issued its quarterly earnings results on Monday, March 2nd. The company reported $0.12 earnings per share (EPS) for the quarter, missing analysts' consensus estimates of $0.31 by ($0.19). The company had revenue of $885.00 million for the quarter, compared to analyst estimates of $866.54 million. Surgery Partners had a negative net margin of 2.35% and a positive return on equity of 1.28%. The company's revenue for the quarter was up 2.4% compared to the same quarter last year. During the same quarter in the previous year, the company posted $0.44 EPS. On average, sell-side analysts expect that Surgery Partners will post 0.67 EPS for the current year.

Surgery Partners announced that its Board of Directors has authorized a stock repurchase program on Thursday, February 26th that allows the company to buyback $200.00 million in outstanding shares. This buyback authorization allows the company to purchase up to 9.7% of its shares through open market purchases. Shares buyback programs are generally an indication that the company's leadership believes its shares are undervalued.

Hedge Funds Weigh In On Surgery Partners

Hedge funds and other institutional investors have recently made changes to their positions in the stock. Alpine Global Management LLC purchased a new stake in shares of Surgery Partners during the fourth quarter worth approximately $175,000. Empowered Funds LLC increased its position in shares of Surgery Partners by 1,340.9% in the 4th quarter. Empowered Funds LLC now owns 161,419 shares of the company's stock valued at $2,494,000 after purchasing an additional 150,216 shares during the last quarter. One68 Global Capital LLC acquired a new stake in shares of Surgery Partners in the 4th quarter valued at $371,000. Man Group plc purchased a new stake in shares of Surgery Partners during the 4th quarter worth $5,080,000. Finally, Inspire Investing LLC grew its stake in shares of Surgery Partners by 45.4% during the fourth quarter. Inspire Investing LLC now owns 30,073 shares of the company's stock worth $465,000 after purchasing an additional 9,384 shares in the last quarter.

Surgery Partners Company Profile

Surgery Partners, Inc operates as a healthcare services provider specializing in the management and ownership of ambulatory surgery centers, surgical hospitals and multispecialty rehabilitation hospitals across the United States. Through its network of facilities, the company coordinates and delivers a broad range of outpatient surgical procedures in specialties such as orthopedics, ophthalmology, otolaryngology, gastroenterology, pain management and general surgery. Its integrated platform offers ancillary services including on-site imaging, laboratory testing, infusion therapy and physical, occupational and speech rehabilitation.

Since its establishment in 2010 and subsequent public listing in 2015, Surgery Partners has focused on strategic partnerships with physicians and health systems to expand access to cost-effective outpatient care.

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