Tenet Healthcare (THC) Cut to Hold at Zacks Investment Research

Zacks Investment Research lowered shares of Tenet Healthcare (NYSE:THC) from a buy rating to a hold rating in a research note issued to investors on Wednesday morning.

According to Zacks, “Shares of Tenet Healthcare gained in a year’s time, outperforming its industry's growth. Moreover, it has witnessed its 2018 earnings estimates move upward over the past 30 days. Strategic divestitures helped streamlining its core operations while accretive acquisitions are significantly strengthening its top line. Moreover, the company’s recently adopted enterprise-wide cost-reduction program is likely to favor earnings going forward. However, the company has a high level of uncollectible accounts inducing a mounting level of bad debt. Rising leverage ratio has induced a spike in interest expenses, weighing on the company’s margins. Its revenues have been declining over the last few quarters mainly due to reduced admissions, inpatient and outpatient surgeries, emergency department visits and total outpatient visits.”

Several other analysts have also weighed in on THC. ValuEngine lowered Tenet Healthcare from a strong-buy rating to a buy rating in a report on Wednesday, June 27th. Jefferies Financial Group lowered Tenet Healthcare from a buy rating to a hold rating and boosted their price objective for the company from $28.00 to $38.00 in a report on Friday, June 29th. Citigroup boosted their price objective on Tenet Healthcare from $37.00 to $44.00 and gave the company a buy rating in a report on Monday, July 23rd. SunTrust Banks reissued a hold rating and issued a $35.00 price objective on shares of Tenet Healthcare in a report on Wednesday, August 8th. Finally, Piper Jaffray Companies reissued a hold rating and issued a $34.00 price objective on shares of Tenet Healthcare in a report on Wednesday, August 8th. Three equities research analysts have rated the stock with a sell rating, ten have assigned a hold rating and four have assigned a buy rating to the company’s stock. Tenet Healthcare currently has an average rating of Hold and an average target price of $30.80.

Shares of Tenet Healthcare stock opened at $25.39 on Wednesday. The company has a debt-to-equity ratio of 24.66, a current ratio of 1.08 and a quick ratio of 1.01. The stock has a market capitalization of $2.91 billion, a P/E ratio of 31.89, a PEG ratio of 1.27 and a beta of 0.92. Tenet Healthcare has a fifty-two week low of $12.25 and a fifty-two week high of $39.74.

Tenet Healthcare (NYSE:THC) last announced its quarterly earnings data on Monday, August 6th. The company reported $0.49 earnings per share for the quarter, beating the Thomson Reuters’ consensus estimate of $0.25 by $0.24. The firm had revenue of $4.51 billion during the quarter, compared to analyst estimates of $4.57 billion. Tenet Healthcare had a positive return on equity of 38.91% and a negative net margin of 2.51%. Tenet Healthcare’s quarterly revenue was down 6.2% on a year-over-year basis. During the same period in the previous year, the company earned ($0.17) earnings per share. Equities research analysts anticipate that Tenet Healthcare will post 1.73 earnings per share for the current fiscal year.

Hedge funds have recently modified their holdings of the business. Advisors Preferred LLC acquired a new position in Tenet Healthcare in the second quarter valued at approximately $163,000. NumerixS Investment Technologies Inc acquired a new position in Tenet Healthcare in the second quarter valued at approximately $166,000. Assetmark Inc. boosted its stake in Tenet Healthcare by 45.8% in the second quarter. Assetmark Inc. now owns 5,093 shares of the company’s stock valued at $171,000 after acquiring an additional 1,601 shares during the period. Cubist Systematic Strategies LLC boosted its stake in Tenet Healthcare by 286.0% in the first quarter. Cubist Systematic Strategies LLC now owns 7,700 shares of the company’s stock valued at $187,000 after acquiring an additional 5,705 shares during the period. Finally, Vident Investment Advisory LLC acquired a new position in Tenet Healthcare in the second quarter valued at approximately $207,000.

About Tenet Healthcare

Tenet Healthcare Corporation operates as a diversified healthcare services company. It operates in three segments: Hospital Operations and Other, Ambulatory Care, and Conifer. The company's general hospitals offer acute care services, operating and recovery rooms, radiology and respiratory therapy services, clinical laboratories, and pharmacies.

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