Tenet Healthcare (NYSE:THC) Downgraded by Zacks Investment Research to Sell

Zacks Investment Research downgraded shares of Tenet Healthcare (NYSE:THC) from a hold rating to a sell rating in a research report released on Saturday, January 20th.

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.”

THC has been the subject of a number of other reports. ValuEngine cut Tenet Healthcare from a hold rating to a sell rating in a research note on Sunday, December 31st. Citigroup upgraded Tenet Healthcare from a neutral rating to a buy rating in a research note on Tuesday, December 12th. Royal Bank of Canada reiterated a hold rating and issued a $19.00 price objective on shares of Tenet Healthcare in a research report on Monday, September 25th. Credit Suisse Group started coverage on Tenet Healthcare in a research report on Thursday, November 2nd. They issued a neutral rating and a $15.00 price objective for the company. Finally, William Blair reiterated a market perform rating on shares of Tenet Healthcare in a research report on Tuesday, November 21st. Five analysts have rated the stock with a sell rating, seven have issued a hold rating and five have assigned a buy rating to the company’s stock. The stock presently has an average rating of Hold and a consensus price target of $18.36.

Tenet Healthcare (NYSE THC) opened at $18.75 on Friday. Tenet Healthcare has a 52-week low of $12.25 and a 52-week high of $22.72. The company has a market capitalization of $1,890.00, a PE ratio of -3.41, a PEG ratio of 3.40 and a beta of 1.24. The company has a debt-to-equity ratio of 21.21, a quick ratio of 1.21 and a current ratio of 1.28.

In other Tenet Healthcare news, Director George Fredrick Smitherman bought 125,000 shares of Tenet Healthcare stock in a transaction that occurred on Thursday, January 25th. The shares were purchased at an average cost of $38.50 per share, for a total transaction of $4,812,500.00. Insiders have sold 54,600 shares of company stock worth $94,146 over the last quarter. 3.10% of the stock is currently owned by company insiders.

Several institutional investors have recently added to or reduced their stakes in THC. King Street Capital Management L.P. purchased a new position in shares of Tenet Healthcare in the 3rd quarter worth about $31,217,000. Davidson Kempner Capital Management LP purchased a new stake in shares of Tenet Healthcare during the 2nd quarter valued at about $20,133,000. FMR LLC raised its holdings in shares of Tenet Healthcare by 36.9% during the 2nd quarter. FMR LLC now owns 3,724,713 shares of the company’s stock valued at $72,036,000 after buying an additional 1,004,700 shares during the period. Dimensional Fund Advisors LP raised its holdings in shares of Tenet Healthcare by 38.6% during the 2nd quarter. Dimensional Fund Advisors LP now owns 2,141,658 shares of the company’s stock valued at $41,420,000 after buying an additional 596,526 shares during the period. Finally, State Street Corp raised its holdings in shares of Tenet Healthcare by 25.4% during the 2nd quarter. State Street Corp now owns 2,926,533 shares of the company’s stock valued at $56,603,000 after buying an additional 593,520 shares during the period.

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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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