Tenet Healthcare (NYSE:THC) Shares Gap Up Following Better-Than-Expected Earnings

Shares of Tenet Healthcare Co. (NYSE:THC) gapped up before the market opened 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.

The company reported $4.36 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $3.11 by $1.25. Tenet Healthcare had a net margin of 15.48% and a return on equity of 21.88%. The business had revenue of $5.22 billion during the quarter, compared to analyst estimates of $5.15 billion. During the same quarter last year, the business earned $3.22 EPS. The firm’s quarterly revenue was down 2.5% on a year-over-year basis.

Analysts Set New Price Targets

Several brokerages have commented on THC. KeyCorp cut their target price on Tenet Healthcare from $200.00 to $185.00 and set an “overweight” rating on the stock in a report on Tuesday, January 7th. TD Cowen assumed coverage on Tenet Healthcare in a report on Wednesday, February 26th. They issued a “buy” rating and a $175.00 target price on the stock. Barclays lowered their price target on shares of Tenet Healthcare from $190.00 to $161.00 and set an “overweight” rating for the company in a report on Thursday, February 13th. StockNews.com upgraded shares of Tenet Healthcare from a “hold” rating to a “buy” rating in a research report on Thursday, March 13th. Finally, Truist Financial cut their price target on shares of Tenet Healthcare from $190.00 to $175.00 and set a “buy” rating on the stock in a research report on Monday, January 6th. Five investment analysts have rated the stock with a hold rating and fifteen have given a buy rating to the company. According to data from MarketBeat, the stock presently has a consensus rating of “Moderate Buy” and an average price target of $165.44.

Insider Activity

In related news, Director J Robert Kerrey sold 9,525 shares of the firm’s stock in a transaction dated Tuesday, March 11th. The shares were sold at an average price of $125.43, for a total transaction of $1,194,720.75. Following the transaction, the director now directly owns 27,378 shares of the company’s stock, valued at $3,434,022.54. This trade 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 available at this link. Corporate insiders own 0.81% of the company’s stock.

Institutional Trading of Tenet Healthcare

Hedge funds have recently bought and sold shares of the business. Loring Wolcott & Coolidge Fiduciary Advisors LLP MA purchased a new position in Tenet Healthcare in the first quarter valued at approximately $26,000. Wayfinding Financial LLC purchased a new position in shares of Tenet Healthcare during the 1st quarter valued at $28,000. Colonial Trust Co SC increased its holdings in Tenet Healthcare by 85.7% in the 4th quarter. Colonial Trust Co SC now owns 247 shares of the company’s stock worth $31,000 after acquiring an additional 114 shares during the last quarter. GeoWealth Management LLC boosted its position in Tenet Healthcare by 39.8% during the fourth quarter. GeoWealth Management LLC now owns 295 shares of the company’s stock worth $37,000 after purchasing an additional 84 shares during the period. Finally, WR Wealth Planners LLC raised its position in shares of Tenet Healthcare by 2,836.4% in the fourth quarter. WR Wealth Planners LLC now owns 323 shares of the company’s stock valued at $41,000 after purchasing an additional 312 shares during the period. 95.44% of the stock is currently owned by institutional investors.

Tenet Healthcare Price Performance

The business’s 50 day moving average is $126.28 and its two-hundred day moving average is $136.58. The company has a debt-to-equity ratio of 2.25, a quick ratio of 1.70 and a current ratio of 1.78. The firm has a market capitalization of $13.02 billion, a PE ratio of 4.28, a price-to-earnings-growth ratio of 1.02 and a beta of 1.77.

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.