Zacks Investment Research cut shares of Tenet Healthcare (NYSE:THC) from a hold rating to a sell rating in a research note published on Saturday morning.
According to Zacks, “Tenet Healthcare’s shares have underperformed the industry in a year's time. The company has a high level of uncollectible accounts leading to mounting level of bad debt. Rising level of debt has led to a spike in interest expenses, weighing on margins. The company has also been suffering from lower revenues over past many quarters. Tenet Healthcare has also seen its Zacks Consensus Estimate for 2018 earnings being revised downward in the past 60 days. Following lackluster third-quarter 2017 results, the company lowered its guidance for 2017. The company has also lowered its 2018 earnings guidance following the recent tax cut. However, accretive acquisitions have significantly strengthened the top line. Strategic divestitures helped streamline its core operations. Moreover, the company’s recently taken enterprise-wide cost reduction program is likely to favor earnings going forward.”
Several other equities analysts also recently weighed in on the company. Goldman Sachs Group initiated coverage on Tenet Healthcare in a research report on Wednesday, January 3rd. They issued a neutral rating and a $15.00 target price for the company. ValuEngine downgraded Tenet Healthcare from a hold rating to a sell rating in a research report on Sunday, December 31st. Leerink Swann reaffirmed a buy rating and issued a $27.00 target price on shares of Tenet Healthcare in a research report on Wednesday, December 20th. Morgan Stanley downgraded Tenet Healthcare from an equal weight rating to an underweight rating and set a $14.00 target price for the company. in a research report on Wednesday, December 20th. Finally, Mizuho lifted their target price on Tenet Healthcare from $13.00 to $15.00 and gave the company a neutral rating in a research report on Tuesday, December 19th. Five investment analysts have rated the stock with a sell rating, six have assigned a hold rating and six have assigned a buy rating to the company’s stock. The company currently has a consensus rating of Hold and an average target price of $18.50.
Shares of Tenet Healthcare (NYSE:THC) traded up $0.96 during trading hours on Friday, hitting $17.24. The company had a trading volume of 3,899,194 shares, compared to its average volume of 2,670,000. The company has a quick ratio of 1.21, a current ratio of 1.28 and a debt-to-equity ratio of 21.21. The firm has a market cap of $1,740.00, a P/E ratio of -3.13, a price-to-earnings-growth ratio of 3.39 and a beta of 1.17. Tenet Healthcare has a 1 year low of $12.25 and a 1 year high of $22.72.
Tenet Healthcare (NYSE:THC) last issued its quarterly earnings data on Friday, October 27th. The company reported ($0.17) earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of ($0.38) by $0.21. Tenet Healthcare had a negative return on equity of 5.61% and a negative net margin of 2.85%. sell-side analysts expect that Tenet Healthcare will post 0.69 EPS for the current year.
In other news, Director George Fredrick Smitherman sold 1,300 shares of Tenet Healthcare stock in a transaction dated Monday, January 15th. The stock was sold at an average price of $38.50, for a total value of $50,050.00. Company insiders own 3.10% of the company’s stock.
Institutional investors and hedge funds have recently made changes to their positions in the company. Boston Private Wealth LLC boosted its stake in shares of Tenet Healthcare by 13.9% in the 3rd quarter. Boston Private Wealth LLC now owns 77,505 shares of the company’s stock valued at $1,273,000 after buying an additional 9,435 shares during the period. Point72 Asset Management L.P. purchased a new position in shares of Tenet Healthcare in the 3rd quarter valued at about $4,640,000. Proxima Capital Management LLC boosted its stake in shares of Tenet Healthcare by 8.3% in the 2nd quarter. Proxima Capital Management LLC now owns 103,939 shares of the company’s stock valued at $2,010,000 after buying an additional 8,000 shares during the period. King Street Capital Management L.P. purchased a new position in shares of Tenet Healthcare in the 3rd quarter valued at about $31,217,000. Finally, Scoggin Management LP purchased a new stake in Tenet Healthcare during the third quarter worth approximately $657,000.
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About Tenet Healthcare
Tenet Healthcare Corporation (Tenet) is a healthcare services company. The Company operates regionally focused, integrated healthcare delivery networks in large urban and suburban markets in the United States. The Company’s segments include Hospital Operations and Other, Ambulatory Care and Conifer. As of December 31, 2016, its subsidiaries operated 79 hospitals, including three academic medical centers, two children’s hospitals, two specialty hospitals and one critical access hospital.
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