Tenet Healthcare (NYSE:THC) Shares Gap Down – Time to Sell?

Tenet Healthcare Co. (NYSE:THC)’s stock price gapped down prior to trading on Friday . The stock had previously closed at $151.09, but opened at $138.88. Tenet Healthcare shares last traded at $141.54, with a volume of 405,968 shares traded.

Wall Street Analyst Weigh In

A number of research analysts have commented on THC shares. Truist Financial increased their price objective on shares of Tenet Healthcare from $170.00 to $180.00 and gave the company a “buy” rating in a research note on Monday, October 14th. UBS Group lifted their price target on Tenet Healthcare from $180.00 to $197.00 and gave the stock a “buy” rating in a research note on Wednesday, August 14th. Wells Fargo & Company upped their price objective on Tenet Healthcare from $175.00 to $195.00 and gave the company an “overweight” rating in a research note on Tuesday, October 22nd. KeyCorp assumed coverage on Tenet Healthcare in a report on Friday, October 11th. They issued an “overweight” rating and a $200.00 price target for the company. Finally, Barclays raised their price objective on Tenet Healthcare from $156.00 to $171.00 and gave the stock an “overweight” rating in a research note on Monday, July 29th. One analyst has rated the stock with a hold rating, fourteen have issued a buy rating and four have issued a strong buy rating to the company. According to data from MarketBeat, the company presently has a consensus rating of “Buy” and a consensus price target of $157.24.

Tenet Healthcare Price Performance

The business’s 50 day simple moving average is $159.85 and its 200-day simple moving average is $140.50. The stock has a market capitalization of $13.65 billion, a price-to-earnings ratio of 5.42, a price-to-earnings-growth ratio of 0.80 and a beta of 2.14. The company has a debt-to-equity ratio of 2.53, a quick ratio of 1.38 and a current ratio of 1.45.

Tenet Healthcare (NYSE:THC) last issued its quarterly earnings data on Wednesday, July 24th. The company reported $2.31 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $1.89 by $0.42. Tenet Healthcare had a return on equity of 24.66% and a net margin of 13.17%. The business had revenue of $5.10 billion during the quarter, compared to analyst estimates of $4.98 billion. Research analysts anticipate that Tenet Healthcare Co. will post 10.72 earnings per share for the current year.

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

Insider Activity

In other Tenet Healthcare news, Director Meghan Fitzgerald sold 20,000 shares of the business’s stock in a transaction dated Tuesday, August 6th. The shares were sold at an average price of $146.34, for a total transaction of $2,926,800.00. Following the sale, the director now directly owns 15,269 shares in the company, valued at approximately $2,234,465.46. The trade was a 0.00 % decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this link. In other Tenet Healthcare news, insider R. Scott Ramsey sold 11,599 shares of the business’s stock in a transaction dated Thursday, September 5th. The shares were sold at an average price of $162.06, for a total value of $1,879,733.94. Following the sale, the insider now directly owns 6,324 shares in the company, valued at approximately $1,024,867.44. The trade was a 0.00 % decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, Director Meghan Fitzgerald sold 20,000 shares of the firm’s stock in a transaction dated Tuesday, August 6th. The shares were sold at an average price of $146.34, for a total transaction of $2,926,800.00. Following the transaction, the director now owns 15,269 shares of the company’s stock, valued at approximately $2,234,465.46. This trade represents a 0.00 % decrease in their position. The disclosure for this sale can be found here. Over the last ninety days, insiders have sold 128,203 shares of company stock valued at $19,754,997. Company insiders own 0.93% of the company’s stock.

Institutional Trading of Tenet Healthcare

Several institutional investors and hedge funds have recently added to or reduced their stakes in THC. 180 Wealth Advisors LLC purchased a new stake in shares of Tenet Healthcare during the first quarter valued at $241,000. Allspring Global Investments Holdings LLC increased its position in shares of Tenet Healthcare by 8.9% in the first quarter. Allspring Global Investments Holdings LLC now owns 47,236 shares of the company’s stock worth $4,965,000 after acquiring an additional 3,869 shares in the last quarter. State of Michigan Retirement System raised its holdings in shares of Tenet Healthcare by 2.0% during the first quarter. State of Michigan Retirement System now owns 24,893 shares of the company’s stock valued at $2,617,000 after acquiring an additional 500 shares during the period. Silverlake Wealth Management LLC acquired a new position in Tenet Healthcare in the 1st quarter worth approximately $223,000. Finally, First Trust Direct Indexing L.P. purchased a new position in Tenet Healthcare during the 1st quarter worth approximately $254,000. 95.44% of the stock is owned by institutional investors and hedge funds.

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.