Surgery Partners (NASDAQ:SGRY) Reaches New 12-Month High on Strong Earnings

Surgery Partners, Inc. (NASDAQ:SGRY) hit a new 52-week high during trading on Monday following a better than expected earnings announcement. The stock traded as high as $25.70 and last traded at $25.9670, with a volume of 441,815 shares changing hands. The stock had previously closed at $23.20.

The company reported $0.16 EPS for the quarter, beating the consensus estimate of $0.11 by $0.05. The business had revenue of $815.30 million during the quarter, compared to the consensus estimate of $820.96 million. Surgery Partners had a negative net margin of 2.59% and a positive return on equity of 0.96%. The company’s revenue was down .8% on a year-over-year basis. During the same period in the previous year, the business earned $0.13 earnings per share.

Trending Headlines about Surgery Partners

Here are the key news stories impacting Surgery Partners this week:

• Positive Sentiment: The merger price was raised to $25 per share after a rival bid emerged. Reports say a Bon Secours affiliate’s offer could be worth up to $6 billion, and RBC suggested a revised competing offer is possible. The prospect of a higher bid has supported investor interest; however, the referenced $25 terms are below the $26.73 share price in the provided market data, leaving deal uncertainty. RBC on possible revised rival offer
• Positive Sentiment: Third-quarter adjusted EPS was $0.16, above estimates of $0.07–$0.11 and up from $0.13 a year earlier. Q3 earnings report
• Neutral Sentiment: RBC raised its price target from $23.50 to $25 but kept a “sector perform” rating. The higher target is still below the supplied share price, while RBC’s comments about a possible revised rival offer leave room for further deal developments.
• Negative Sentiment: Quarterly revenue of $815.3 million missed estimates and declined slightly year over year. The company also reported a $21.1 million net loss attributable to common shareholders, with weaker gross and operating profit—offset in part by improved operating cash flow.
• Negative Sentiment: Law firms announced investigations into the proposed transaction, raising questions about whether shareholders are receiving fair value. Such scrutiny could add uncertainty or delay; it does not establish wrongdoing. Shareholder buyout investigation notice

Analysts Set New Price Targets

Several brokerages recently commented on SGRY. Cantor Fitzgerald lowered Surgery Partners from an “overweight” rating to a “hold” rating in a research report on Monday, October 26th. JPMorgan Chase & Co. raised their price target on shares of Surgery Partners from $14.00 to $15.00 and gave the company a “neutral” rating in a research report on Monday, September 14th. Stonex Financial downgraded Surgery Partners from a “strong-buy” rating to a “hold” rating in a research note on Tuesday, October 27th. Benchmark reiterated a “buy” rating on shares of Surgery Partners in a research note on Tuesday, August 11th. Finally, Raymond James Financial set a $23.50 price target on shares of Surgery Partners in a research report on Monday, October 26th. Three equities research analysts have rated the stock with a Buy rating, eight have assigned a Hold rating and one has assigned a Sell rating to the company. According to MarketBeat.com, the company has a consensus rating of “Hold” and a consensus price target of $19.30.

Insider Buying and Selling at Surgery Partners

In other Surgery Partners news, Director Teresa DeLuca bought 10,000 shares of Surgery Partners stock in a transaction dated Tuesday, August 18th. The shares were purchased at an average cost of $14.35 per share, with a total value of $143,500.00. Following the completion of the purchase, the director owned 66,843 shares of the company’s stock, valued at approximately $959,197.05. This represents a 17.59% increase 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. Corporate insiders own 2.00% of the company’s stock.

Institutional Trading of Surgery Partners

Hedge funds have recently modified their holdings of the business. PNC Financial Services Group Inc. raised its stake in shares of Surgery Partners by 239.6% in the first quarter. PNC Financial Services Group Inc. now owns 2,907 shares of the company’s stock worth $35,000 after purchasing an additional 2,051 shares during the last quarter. Public Employees Retirement System of Ohio bought a new stake in shares of Surgery Partners in the second quarter worth about $38,000. Fifth Third Bancorp raised its stake in Surgery Partners by 5,324.0% during the first quarter. Fifth Third Bancorp now owns 4,068 shares of the company’s stock valued at $48,000 after purchasing an additional 3,993 shares in the last quarter. Vise Technologies Inc. bought a new stake in shares of Surgery Partners in the 3rd quarter valued at approximately $191,000. Finally, Empowered Funds LLC purchased a new stake in Surgery Partners in the 2nd quarter worth about $216,000.

Surgery Partners Trading Up 1.1%

The company has a debt-to-equity ratio of 1.18, a current ratio of 1.95 and a quick ratio of 1.78. The stock’s fifty day moving average price is $16.55 and its 200 day moving average price is $14.94. The stock has a market capitalization of $3.50 billion, a P/E ratio of -39.31 and a beta of 1.85.

About Surgery Partners

Surgery Partners, Inc. is a U.S. healthcare services company that owns and operates ambulatory surgery centers and surgical hospitals. Its facilities provide outpatient and inpatient surgical care across a range of specialties. The company’s services include surgical procedures and related care delivered in partnership with physicians and healthcare professionals. Its network serves patients in multiple states across the United States. Founded in 2004, Surgery Partners has expanded its network through acquisitions and partnerships with physicians and health systems.