Tenet Healthcare (NYSE:THC) Trading Down 7.1% After Insider Selling

Tenet Healthcare Co. (NYSE:THC) shares fell 7.1% during mid-day trading on Friday following insider selling activity. The stock traded as low as $150.19 and last traded at $150.56. 1,035,292 shares changed hands during trading, a decline of 14% from the average session volume of 1,203,066 shares. The stock had previously closed at $161.98.

Specifically, insider R. Scott Ramsey sold 11,599 shares of the company’s stock in a transaction dated Thursday, September 5th. The stock was sold at an average price of $162.06, for a total transaction of $1,879,733.94. Following the completion of the sale, the insider now owns 6,324 shares in the company, valued at approximately $1,024,867.44. The transaction was disclosed in a filing with the SEC, which is accessible through this hyperlink.

Wall Street Analysts Forecast Growth

THC has been the subject of several recent analyst reports. Cantor Fitzgerald reiterated an “overweight” rating and set a $168.00 price target on shares of Tenet Healthcare in a research note on Monday, August 19th. The Goldman Sachs Group increased their target price on Tenet Healthcare from $156.00 to $173.00 and gave the company a “buy” rating in a research note on Tuesday, July 30th. UBS Group increased their target price on Tenet Healthcare from $180.00 to $197.00 and gave the company a “buy” rating in a research note on Wednesday, August 14th. Robert W. Baird initiated coverage on Tenet Healthcare in a research note on Thursday, May 30th. They set an “outperform” rating and a $153.00 target price for the company. Finally, Raymond James increased their target price on Tenet Healthcare from $130.00 to $175.00 and gave the company a “strong-buy” rating in a research note on Thursday, July 25th. One investment analyst has rated the stock with a hold rating, fourteen have given a buy rating and three have issued a strong buy rating to the stock. Based on data from MarketBeat.com, the company presently has an average rating of “Buy” and a consensus price target of $152.69.

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 has a fifty day moving average price of $147.68 and a 200-day moving average price of $125.75. The firm has a market capitalization of $14.98 billion, a price-to-earnings ratio of 5.95, a PEG ratio of 0.85 and a beta of 2.14.

Tenet Healthcare (NYSE:THC) last released its quarterly earnings results on Wednesday, July 24th. The company reported $2.31 EPS for the quarter, topping analysts’ consensus estimates of $1.89 by $0.42. The business had revenue of $5.10 billion for the quarter, compared to analyst estimates of $4.98 billion. Tenet Healthcare had a return on equity of 24.66% and a net margin of 13.17%. As a group, analysts anticipate that Tenet Healthcare Co. will post 10.7 earnings per share for the current fiscal year.

Tenet Healthcare declared that its Board of Directors has approved a share buyback plan on Wednesday, July 24th that permits the company to repurchase $1.50 billion in outstanding shares. This repurchase authorization permits the company to purchase up to 10.3% of its stock through open market purchases. Stock repurchase plans are generally a sign that the company’s board believes its shares are undervalued.

Institutional Inflows and Outflows

Hedge funds have recently bought and sold shares of the company. Vanguard Group Inc. boosted its position in Tenet Healthcare by 1.6% in the 4th quarter. Vanguard Group Inc. now owns 11,110,396 shares of the company’s stock valued at $839,613,000 after buying an additional 172,913 shares during the last quarter. BNP Paribas Financial Markets boosted its position in shares of Tenet Healthcare by 113.5% in the 1st quarter. BNP Paribas Financial Markets now owns 54,878 shares of the company’s stock worth $5,768,000 after purchasing an additional 29,172 shares during the last quarter. Headlands Technologies LLC bought a new position in shares of Tenet Healthcare in the 1st quarter worth $410,000. Hsbc Holdings PLC boosted its position in shares of Tenet Healthcare by 113.0% in the 4th quarter. Hsbc Holdings PLC now owns 453,624 shares of the company’s stock worth $34,266,000 after purchasing an additional 240,611 shares during the last quarter. Finally, First Light Asset Management LLC bought a new position in shares of Tenet Healthcare in the 4th quarter worth $14,706,000. 95.44% of the stock is currently owned by institutional investors.

About Tenet Healthcare

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.