Tenet Healthcare (NYSE:THC) Shares Gap Up Following Better-Than-Expected Earnings

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 trading hands.

The company reported $2.93 earnings per share for the quarter, topping the consensus estimate of $2.33 by $0.60. Tenet Healthcare had a net margin of 13.17% and a return on equity of 24.66%. The company had revenue of $5.12 billion for the quarter, compared to analyst estimates of $5.05 billion. During the same period last year, the business posted $1.44 earnings per share. The business’s revenue for the quarter was up 1.1% compared to the same quarter last year.

Tenet Healthcare announced that its board has approved a share buyback program on Wednesday, July 24th that allows the company to buyback $1.50 billion in outstanding shares. This buyback authorization allows the company to reacquire up to 10.3% of its shares through open market purchases. Shares buyback programs are usually an indication that the company’s board of directors believes its stock is undervalued.

Wall Street Analysts Forecast Growth

THC has been the subject of several research analyst reports. Wells Fargo & Company boosted their price objective on Tenet Healthcare from $175.00 to $195.00 and gave the company an “overweight” rating in a research report on Tuesday, October 22nd. The Goldman Sachs Group increased their price objective on shares of Tenet Healthcare from $173.00 to $196.00 and gave the stock a “buy” rating in a research report on Wednesday. Barclays upped their target price on shares of Tenet Healthcare from $156.00 to $171.00 and gave the stock an “overweight” rating in a research note on Monday, July 29th. Citigroup boosted their price target on Tenet Healthcare from $139.00 to $171.00 and gave the company a “buy” rating in a report on Thursday, July 25th. Finally, UBS Group lifted their target price on Tenet Healthcare from $197.00 to $217.00 and gave the company a “buy” rating in a research report on Wednesday. One investment analyst has rated the stock with a hold rating, fourteen have issued a buy rating and four have assigned a strong buy rating to the stock. Based on data from MarketBeat, the stock currently has an average rating of “Buy” and a consensus price target of $163.65.

Insiders Place Their Bets

In other 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 transaction, the chief executive officer now directly owns 13,773 shares in the company, valued at $2,126,688.93. The trade was a 0.00 % decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. In other Tenet Healthcare news, Director Meghan Fitzgerald sold 20,000 shares of the company’s stock in a transaction on Tuesday, August 6th. The shares were sold at an average price of $146.34, for a total value of $2,926,800.00. Following the transaction, the director now directly owns 15,269 shares in the company, valued at $2,234,465.46. The trade was a 0.00 % decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at this hyperlink. Also, CEO Saumya Sutaria sold 86,227 shares of the firm’s stock in a transaction dated Wednesday, August 14th. The stock was 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. This represents a 0.00 % decrease in their position. The disclosure for this sale can be found here. Over the last three months, insiders have sold 128,203 shares of company stock valued at $19,754,997. 0.93% of the stock is currently owned by corporate insiders.

Institutional Inflows and Outflows

Large investors have recently bought and sold shares of the stock. Concurrent Investment Advisors LLC increased its stake in shares of Tenet Healthcare by 7.8% during the third quarter. Concurrent Investment Advisors LLC now owns 2,933 shares of the company’s stock worth $487,000 after purchasing an additional 213 shares during the period. Asset Management One Co. Ltd. increased its position in Tenet Healthcare by 80.7% during the 3rd quarter. Asset Management One Co. Ltd. now owns 1,478 shares of the company’s stock worth $246,000 after buying an additional 660 shares during the period. QRG Capital Management Inc. boosted its position in shares of Tenet Healthcare by 5.9% in the third quarter. QRG Capital Management Inc. now owns 8,318 shares of the company’s stock valued at $1,382,000 after acquiring an additional 462 shares during the period. Robeco Institutional Asset Management B.V. acquired a new position in shares of Tenet Healthcare in the third quarter valued at about $3,599,000. Finally, Janney Montgomery Scott LLC raised its stake in Tenet Healthcare by 135.0% in the 3rd quarter. Janney Montgomery Scott LLC now owns 19,478 shares of the company’s stock worth $3,237,000 after purchasing an additional 11,188 shares in the last quarter. 95.44% of the stock is owned by institutional investors.

Tenet Healthcare Stock Performance

The company has a current ratio of 1.45, a quick ratio of 1.38 and a debt-to-equity ratio of 2.53. The stock’s 50-day simple moving average is $159.66 and its 200-day simple moving average is $141.59. The stock has a market cap of $15.14 billion, a price-to-earnings ratio of 5.80, a price-to-earnings-growth ratio of 0.71 and a beta of 2.14.

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.