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

Tenet Healthcare Co. (NYSE:THC) shares gapped up prior to trading on Tuesday following a stronger than expected earnings report. 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, topping the consensus estimate of $3.11 by $1.25. Tenet Healthcare had a return on equity of 21.88% and a net margin of 15.48%. The business had revenue of $5.22 billion for the quarter, compared to analyst estimates of $5.15 billion. During the same period last year, the company earned $3.22 EPS. The firm’s revenue was down 2.5% on a year-over-year basis.

Wall Street Analysts Forecast Growth

Several research firms have weighed in on THC. Truist Financial cut their target price on shares of Tenet Healthcare from $190.00 to $175.00 and set a “buy” rating on the stock in a report on Monday, January 6th. Cantor Fitzgerald restated an “overweight” rating and issued a $177.00 price target on shares of Tenet Healthcare in a report on Thursday, February 13th. Guggenheim started coverage on Tenet Healthcare in a report on Wednesday, April 9th. They issued a “buy” rating and a $165.00 price target on the stock. Morgan Stanley assumed coverage on Tenet Healthcare in a research note on Wednesday, March 26th. They issued an “overweight” rating and a $165.00 target price on the stock. Finally, KeyCorp cut their price objective on shares of Tenet Healthcare from $200.00 to $185.00 and set an “overweight” rating on the stock in a research report on Tuesday, January 7th. Five investment analysts have rated the stock with a hold rating and fifteen have assigned a buy rating to the company’s stock. According to data from MarketBeat, the company presently has a consensus rating of “Moderate Buy” and a consensus target price of $165.44.

Insider Activity at Tenet Healthcare

In other Tenet Healthcare news, Director J Robert Kerrey sold 9,525 shares of the 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 sale, the director now directly owns 27,378 shares in the company, valued at $3,434,022.54. This represents a 25.81 % decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is available at the SEC website. 0.81% of the stock is currently owned by corporate insiders.

Institutional Inflows and Outflows

A number of hedge funds have recently added to or reduced their stakes in THC. Loring Wolcott & Coolidge Fiduciary Advisors LLP MA bought a new position in shares of Tenet Healthcare in the 1st quarter valued at $26,000. Wayfinding Financial LLC acquired a new position in Tenet Healthcare during the first quarter worth about $28,000. Colonial Trust Co SC lifted its holdings in shares of Tenet Healthcare by 85.7% in the fourth 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 stake in shares of Tenet Healthcare by 39.8% in the 4th quarter. GeoWealth Management LLC now owns 295 shares of the company’s stock valued at $37,000 after purchasing an additional 84 shares in the last quarter. Finally, WR Wealth Planners LLC lifted its stake in 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 during the last quarter. 95.44% of the stock is owned by institutional investors.

Tenet Healthcare Price Performance

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

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.