Tenet Healthcare (NYSE:THC) Shares Gap Up After Strong Earnings

Tenet Healthcare Co. (NYSE:THC)’s stock price gapped up before the market opened 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 changing hands.

The company reported $4.36 earnings per share (EPS) for the quarter, beating the consensus estimate of $3.10 by $1.26. Tenet Healthcare had a return on equity of 21.88% and a net margin of 15.48%. During the same period in the previous year, the company earned $3.22 EPS. Tenet Healthcare’s quarterly revenue was down 2.5% compared to the same quarter last year.

Wall Street Analyst Weigh In

A number of equities research analysts have weighed in on the stock. Truist Financial decreased 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 note on Monday, January 6th. Morgan Stanley began coverage on Tenet Healthcare in a research note on Wednesday, March 26th. They set an “overweight” rating and a $165.00 price target on the stock. Cantor Fitzgerald reiterated an “overweight” rating and issued a $177.00 price objective on shares of Tenet Healthcare in a report on Thursday, February 13th. Baird R W lowered Tenet Healthcare from a “strong-buy” rating to a “hold” rating in a report on Tuesday, April 15th. Finally, Robert W. Baird restated a “neutral” rating and set a $137.00 target price (down from $153.00) on shares of Tenet Healthcare in a report on Tuesday, April 15th. Five research analysts have rated the stock with a hold rating and fifteen have assigned a buy rating to the stock. According to data from MarketBeat, the company presently has an average rating of “Moderate Buy” and an average price target of $165.44.

Insider Activity

In other Tenet Healthcare news, Director J Robert Kerrey sold 9,525 shares of the company’s stock in a transaction that occurred on Tuesday, March 11th. The stock was sold at an average price of $125.43, for a total value of $1,194,720.75. Following the completion of the sale, the director now owns 27,378 shares of the company’s stock, 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 Securities & Exchange Commission, which is available through the SEC website. Corporate insiders own 0.81% of the company’s stock.

Institutional Inflows and Outflows

Several hedge funds have recently made changes to their positions in the company. Franklin Resources Inc. grew its position in shares of Tenet Healthcare by 11.9% in the 3rd quarter. Franklin Resources Inc. now owns 457,704 shares of the company’s stock worth $71,077,000 after buying an additional 48,580 shares during the last quarter. Retirement Systems of Alabama increased its position in shares of Tenet Healthcare by 46.6% during the third quarter. Retirement Systems of Alabama now owns 176,757 shares of the company’s stock valued at $29,377,000 after buying an additional 56,193 shares during the period. B. Riley Wealth Advisors Inc. boosted its position in Tenet Healthcare by 101.3% during the 3rd quarter. B. Riley Wealth Advisors Inc. now owns 7,894 shares of the company’s stock valued at $1,281,000 after acquiring an additional 3,973 shares in the last quarter. Nordea Investment Management AB lifted its position in Tenet Healthcare by 13.5% during the fourth quarter. Nordea Investment Management AB now owns 83,793 shares of the company’s stock valued at $10,577,000 after buying an additional 9,946 shares during the period. Finally, CWA Asset Management Group LLC bought a new position in shares of Tenet Healthcare during the fourth quarter valued at $1,758,000. 95.44% of the stock is owned by hedge funds and other institutional investors.

Tenet Healthcare Stock Up 7.7 %

The firm has a market cap of $12.60 billion, a P/E ratio of 4.14, a PEG ratio of 1.02 and a beta of 1.77. The company’s 50 day simple moving average is $126.27 and its 200-day simple moving average is $136.57. The company has a current ratio of 1.78, a quick ratio of 1.70 and a debt-to-equity ratio of 2.25.

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.