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

Tenet Healthcare Co. (NYSE:THC) gapped up before the market opened on Tuesday following a stronger than expected earnings report. The stock had previously closed at $139.49, but opened at $147.70. Tenet Healthcare shares last traded at $151.39, with a volume of 352,613 shares changing hands.

The company reported $2.93 earnings per share for the quarter, beating analysts’ consensus estimates of $2.33 by $0.60. Tenet Healthcare had a return on equity of 24.66% and a net margin of 13.17%. The company had revenue of $5.12 billion for the quarter, compared to analysts’ expectations of $5.05 billion. During the same period last year, the firm earned $1.44 earnings per share. Tenet Healthcare’s quarterly revenue was up 1.1% on a year-over-year basis.

Tenet Healthcare announced that its Board of Directors has authorized a stock repurchase program on Wednesday, July 24th that authorizes the company to buyback $1.50 billion in shares. This buyback authorization authorizes the company to buy up to 10.3% of its stock through open market purchases. Stock buyback programs are generally a sign that the company’s management believes its shares are undervalued.

Analyst Upgrades and Downgrades

A number of research firms recently commented on THC. Cantor Fitzgerald increased their target price on shares of Tenet Healthcare from $168.00 to $177.00 and gave the company an “overweight” rating in a research report on Wednesday. KeyCorp assumed coverage on Tenet Healthcare in a report on Friday, October 11th. They issued an “overweight” rating and a $200.00 target price for the company. Truist Financial reaffirmed a “buy” rating and set a $190.00 price target (up previously from $180.00) on shares of Tenet Healthcare in a research report on Wednesday. The Goldman Sachs Group increased their price objective on Tenet Healthcare from $173.00 to $196.00 and gave the company a “buy” rating in a report on Wednesday. Finally, Royal Bank of Canada lifted their target price on shares of Tenet Healthcare from $174.00 to $183.00 and gave the company an “outperform” rating in a report on Wednesday. One analyst has rated the stock with a hold rating, fourteen have given a buy rating and four have issued a strong buy rating to the company’s stock. Based on data from MarketBeat.com, the company presently has a consensus rating of “Buy” and a consensus target price of $163.65.

Insider Buying and Selling

In other Tenet Healthcare news, CEO Saumya Sutaria sold 86,227 shares of the business’s stock in a transaction on Wednesday, August 14th. The shares were sold at an average price of $154.41, for a total transaction of $13,314,311.07. Following the sale, the chief executive officer now directly owns 13,773 shares in the company, valued at approximately $2,126,688.93. The trade was a 0.00 % decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through the SEC website. In related news, CEO Saumya Sutaria sold 86,227 shares of the business’s stock in a transaction dated Wednesday, August 14th. The shares were sold at an average price of $154.41, for a total transaction of $13,314,311.07. Following the sale, the chief executive officer now owns 13,773 shares of the company’s stock, valued at approximately $2,126,688.93. The trade was a 0.00 % decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at this link. Also, insider R. Scott Ramsey sold 11,599 shares of Tenet Healthcare stock in a transaction that occurred on Thursday, September 5th. The shares were sold at an average price of $162.06, for a total transaction of $1,879,733.94. Following the sale, the insider now owns 6,324 shares of the company’s stock, valued at approximately $1,024,867.44. The trade was a 0.00 % decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders have sold 128,203 shares of company stock valued at $19,754,997 over the last quarter. Company insiders own 0.93% of the company’s stock.

Institutional Inflows and Outflows

Hedge funds and other institutional investors have recently made changes to their positions in the company. BNP Paribas Financial Markets increased its holdings in Tenet Healthcare by 113.5% during the 1st quarter. BNP Paribas Financial Markets now owns 54,878 shares of the company’s stock valued at $5,768,000 after acquiring an additional 29,172 shares in the last quarter. Headlands Technologies LLC purchased a new stake in Tenet Healthcare in the 1st quarter valued at approximately $410,000. Legacy Capital Group California Inc. acquired a new stake in Tenet Healthcare during the 3rd quarter valued at $1,055,000. Diversified Trust Co acquired a new position in shares of Tenet Healthcare in the second quarter worth $558,000. Finally, Janney Montgomery Scott LLC acquired a new stake in shares of Tenet Healthcare during the first quarter valued at $537,000. Institutional investors and hedge funds own 95.44% of the company’s stock.

Tenet Healthcare Trading Down 2.9 %

The stock has a market cap of $15.14 billion, a PE ratio of 5.80, a PEG ratio of 0.71 and a beta of 2.14. The company has a debt-to-equity ratio of 2.53, a quick ratio of 1.38 and a current ratio of 1.45. The business has a 50-day moving average of $159.66 and a 200 day moving average of $141.59.

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.