Zacks Research Upgrades Surgery Partners (NASDAQ:SGRY) to Hold

Key Points

• Zacks Research upgraded Surgery Partners from a "strong sell" to a "hold" rating, signaling a less negative near-term view from that analyst.
• Surgery Partners beat quarterly expectations (EPS -$0.03 vs. -$0.15 and revenue $810.9M vs. $797.7M) and its board approved a $200 million stock buyback that could repurchase up to 9.7% of shares.
• Analysts have recently cut price targets (e.g., TD Cowen, RBC, Barclays) but the consensus remains a "Moderate Buy" with an average target of $22.18, while the stock trades around $14.31 (market cap ~$1.87B, 1‑year range $11.41–$24.18).

Surgery Partners (NASDAQ:SGRY - Get Free Report) was upgraded by Zacks Research from a "strong sell" rating to a "hold" rating in a note issued to investors on Wednesday,Zacks.com reports.

A number of other equities research analysts have also weighed in on the stock. TD Cowen lowered their target price on shares of Surgery Partners from $28.00 to $20.00 and set a "buy" rating on the stock in a report on Thursday, March 5th. Royal Bank Of Canada lowered their target price on shares of Surgery Partners from $31.00 to $20.00 and set an "outperform" rating on the stock in a report on Wednesday, March 4th. Barclays lowered their target price on shares of Surgery Partners from $18.00 to $14.00 and set an "equal weight" rating on the stock in a report on Tuesday, March 3rd. US Capital Advisors set a $21.00 target price on shares of Surgery Partners in a report on Wednesday, March 11th. Finally, UBS Group restated a "buy" rating on shares of Surgery Partners in a report on Wednesday, March 11th. Eight equities research analysts have rated the stock with a Buy rating, three have given a Hold rating and one has issued a Sell rating to the company. Based on data from MarketBeat, the stock presently has an average rating of "Moderate Buy" and a consensus target price of $22.18.

Surgery Partners Price Performance

SGRY stock opened at $14.31 on Wednesday. The stock has a market capitalization of $1.87 billion, a PE ratio of -23.85, a price-to-earnings-growth ratio of 11.88 and a beta of 1.99. The company's 50-day moving average is $13.32 and its 200-day moving average is $15.51. The company has a debt-to-equity ratio of 1.17, a current ratio of 1.86 and a quick ratio of 1.71. Surgery Partners has a 1 year low of $11.41 and a 1 year high of $24.18.

Surgery Partners (NASDAQ:SGRY - Get Free Report) last released its quarterly earnings data on Tuesday, May 5th. The company reported ($0.03) earnings per share (EPS) for the quarter, topping analysts' consensus estimates of ($0.15) by $0.12. The company had revenue of $810.90 million for the quarter, compared to analysts' expectations of $797.69 million. Surgery Partners had a negative net margin of 2.28% and a positive return on equity of 1.04%. The business's revenue was up 4.5% on a year-over-year basis. During the same quarter in the prior year, the firm earned $0.04 EPS. Equities research analysts expect that Surgery Partners will post 0.09 EPS for the current fiscal year.

Surgery Partners announced that its board has approved a stock buyback plan on Thursday, February 26th that permits the company to repurchase $200.00 million in shares. This repurchase authorization permits the company to reacquire up to 9.7% of its stock through open market purchases. Stock repurchase plans are generally an indication that the company's board believes its stock is undervalued.

Insider Transactions at Surgery Partners

In other news, CFO David T. Doherty sold 8,867 shares of the firm's stock in a transaction that occurred on Monday, March 16th. The shares were sold at an average price of $12.50, for a total transaction of $110,837.50. Following the completion of the sale, the chief financial officer owned 221,679 shares in the company, valued at $2,770,987.50. This trade represents a 3.85% decrease in their position. The sale was disclosed in a document filed with the SEC, which is available at this hyperlink. Also, insider Jennifer Baldock sold 5,798 shares of the firm's stock in a transaction that occurred on Thursday, March 12th. The stock was sold at an average price of $13.17, for a total transaction of $76,359.66. Following the sale, the insider owned 326,474 shares of the company's stock, valued at approximately $4,299,662.58. The trade was a 1.74% decrease in their position. The disclosure for this sale is available in the SEC filing. In the last 90 days, insiders have sold 96,896 shares of company stock worth $1,284,058. Company insiders own 2.70% of the company's stock.

Institutional Investors Weigh In On Surgery Partners

Several large investors have recently modified their holdings of SGRY. Jones Financial Companies Lllp increased its stake in shares of Surgery Partners by 313.1% during the 3rd quarter. Jones Financial Companies Lllp now owns 1,227 shares of the company's stock worth $27,000 after purchasing an additional 930 shares during the last quarter. Fifth Third Bancorp increased its stake in shares of Surgery Partners by 5,324.0% during the 1st quarter. Fifth Third Bancorp now owns 4,068 shares of the company's stock worth $48,000 after purchasing an additional 3,993 shares during the last quarter. Caitong International Asset Management Co. Ltd increased its stake in shares of Surgery Partners by 45,640.0% during the 3rd quarter. Caitong International Asset Management Co. Ltd now owns 2,287 shares of the company's stock worth $49,000 after purchasing an additional 2,282 shares during the last quarter. PNC Financial Services Group Inc. increased its stake in shares of Surgery Partners by 128.4% during the 3rd quarter. PNC Financial Services Group Inc. now owns 2,702 shares of the company's stock worth $58,000 after purchasing an additional 1,519 shares during the last quarter. Finally, Aquatic Capital Management LLC purchased a new stake in shares of Surgery Partners during the 3rd quarter worth approximately $121,000.

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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