Zacks Investment Research upgraded shares of Tenet Healthcare Corp. (NYSE:THC) from a hold rating to a buy rating in a report released on Tuesday. They currently have $24.00 price objective on the stock.
According to Zacks, “Tenet Healthcare’s consistent growth in operating revenues backed by its prudent inorganic growth story remains the major strength. In addition, frequent product launches and sound capital structure also help in driving profitability. The company also enjoys a strong competitive advantage in benefiting from extended insurance coverage. Going ahead, the Vanguard acquisition, divestitures and an impressive inorganic profile are expected to be accretive to earnings as well. However, for serving a large number of uninsured and underinsured patients with a high burden of co-payments and deductibles, the company has a high level of uncollectible accounts and suffering from rising bad debts. It also has been experiencing high levels of operating expenses over past few years. Deployment of a substantial part of its cash flow in paying the interests on its debts also keeps the bottom line under pressure.”
A number of other research analysts have also weighed in on THC. Ladenburg Thalmann raised Tenet Healthcare Corp. from a not rated rating to an underperform rating in a report on Monday, June 13th. Credit Suisse Group AG reaffirmed a hold rating on shares of Tenet Healthcare Corp. in a report on Tuesday, June 28th. Leerink Swann reaffirmed a market perform rating and set a $28.00 target price (down previously from $30.00) on shares of Tenet Healthcare Corp. in a report on Sunday, September 4th. Morgan Stanley reaffirmed a hold rating and set a $38.00 target price on shares of Tenet Healthcare Corp. in a report on Tuesday, August 2nd. Finally, Citigroup Inc. reduced their target price on Tenet Healthcare Corp. from $36.00 to $31.00 and set a neutral rating for the company in a report on Thursday, August 4th. One analyst has rated the stock with a sell rating, ten have issued a hold rating and ten have assigned a buy rating to the company. The company currently has a consensus rating of Hold and an average target price of $32.64.
Shares of Tenet Healthcare Corp. (NYSE:THC) opened at 21.34 on Tuesday. The company’s market cap is $2.12 billion. The stock has a 50 day moving average of $23.28 and a 200-day moving average of $27.75. Tenet Healthcare Corp. has a 12 month low of $20.93 and a 12 month high of $38.54.
Tenet Healthcare Corp. (NYSE:THC) last posted its earnings results on Monday, August 1st. The company reported $0.38 earnings per share for the quarter, missing the Zacks’ consensus estimate of $0.52 by $0.14. The company had revenue of $4.87 billion for the quarter, compared to analysts’ expectations of $4.82 billion. Tenet Healthcare Corp. had a negative net margin of 1.15% and a positive return on equity of 14.47%. The firm’s quarterly revenue was up 8.4% compared to the same quarter last year. During the same period in the previous year, the firm earned $0.75 EPS. On average, analysts forecast that Tenet Healthcare Corp. will post $1.54 EPS for the current year.
Institutional investors have recently made changes to their positions in the stock. Harris Associates L P increased its position in shares of Tenet Healthcare Corp. by 0.7% in the second quarter. Harris Associates L P now owns 8,333,793 shares of the company’s stock worth $230,346,000 after buying an additional 60,200 shares in the last quarter. State Street Corp increased its position in Tenet Healthcare Corp. by 0.5% in the first quarter. State Street Corp now owns 3,613,092 shares of the company’s stock worth $104,526,000 after buying an additional 16,880 shares during the period. BlackRock Fund Advisors increased its position in Tenet Healthcare Corp. by 94.3% in the second quarter. BlackRock Fund Advisors now owns 3,611,528 shares of the company’s stock worth $99,823,000 after buying an additional 1,753,061 shares during the period. BlackRock Institutional Trust Company N.A. increased its position in Tenet Healthcare Corp. by 12.7% in the first quarter. BlackRock Institutional Trust Company N.A. now owns 3,248,632 shares of the company’s stock worth $93,983,000 after buying an additional 366,029 shares during the period. Finally, BlackRock Group LTD increased its position in Tenet Healthcare Corp. by 17.5% in the first quarter. BlackRock Group LTD now owns 1,348,230 shares of the company’s stock worth $39,004,000 after buying an additional 201,254 shares during the period.
About Tenet Healthcare Corp.
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 operates through three segments: Hospital Operations and other, Ambulatory Care and Conifer.
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