Tenet Healthcare (THC) Rating Lowered to Sell at Zacks Investment Research

Zacks Investment Research cut shares of Tenet Healthcare (NYSE:THC) from a hold rating to a sell rating in a report issued on Thursday morning.

According to Zacks, “Tenet Healthcare has high level of uncollectible accounts leading to an increase in bad debt level. Its revenues have been declining over the last few quarters, mainly due to reduced admissions, inpatient and outpatient surgeries, emergency department visits and total outpatient visits. A downward revision in guidance for 2018 is another concern. However, its shares have outperformed its industry’s growth in a year’s time. Strategic divestitures helped streamlining its core operations while accretive acquisitions are significantly strengthening its top line. Moreover, the company’s recently adopted enterprise-wide cost-reduction program is likely to favor earnings going forward.”

A number of other research analysts have also weighed in on THC. ValuEngine raised shares of Tenet Healthcare from a sell rating to a hold rating in a research note on Wednesday, January 9th. Barclays reiterated a hold rating and issued a $20.00 price objective on shares of Tenet Healthcare in a report on Sunday, January 6th. Deutsche Bank started coverage on shares of Tenet Healthcare in a report on Thursday, January 3rd. They issued a hold rating and a $20.00 price objective on the stock. Robert W. Baird downgraded shares of Tenet Healthcare from an outperform rating to a neutral rating in a report on Monday, December 17th. Finally, Raymond James reiterated a buy rating and issued a $37.00 price objective on shares of Tenet Healthcare in a report on Monday, December 3rd. Three equities research analysts have rated the stock with a sell rating, eleven have given a hold rating and four have issued a buy rating to the stock. Tenet Healthcare presently has a consensus rating of Hold and an average target price of $31.44.

Shares of NYSE THC opened at $21.69 on Thursday. The firm has a market capitalization of $2.15 billion, a PE ratio of 26.78, a P/E/G ratio of 0.58 and a beta of 1.34. The company has a debt-to-equity ratio of 21.55, a quick ratio of 0.99 and a current ratio of 1.06. Tenet Healthcare has a 12-month low of $15.40 and a 12-month high of $39.74.

Tenet Healthcare (NYSE:THC) last posted its quarterly earnings results on Monday, November 5th. The company reported $0.29 earnings per share for the quarter, beating the Zacks’ consensus estimate of $0.11 by $0.18. Tenet Healthcare had a positive return on equity of 47.38% and a negative net margin of 0.61%. The company had revenue of $4.49 billion for the quarter, compared to analysts’ expectations of $4.37 billion. During the same period last year, the firm earned ($0.17) earnings per share. Tenet Healthcare’s quarterly revenue was down 2.1% on a year-over-year basis. As a group, analysts anticipate that Tenet Healthcare will post 1.61 earnings per share for the current year.

Hedge funds and other institutional investors have recently modified their holdings of the stock. Russell Investments Group Ltd. bought a new position in Tenet Healthcare in the 2nd quarter valued at approximately $929,000. Fox Run Management L.L.C. bought a new position in Tenet Healthcare in the 3rd quarter valued at approximately $483,000. Acadian Asset Management LLC raised its holdings in Tenet Healthcare by 695.3% in the 3rd quarter. Acadian Asset Management LLC now owns 332,691 shares of the company’s stock valued at $9,468,000 after buying an additional 290,861 shares during the last quarter. Schroder Investment Management Group raised its holdings in Tenet Healthcare by 48.6% in the 3rd quarter. Schroder Investment Management Group now owns 62,894 shares of the company’s stock valued at $1,790,000 after buying an additional 20,581 shares during the last quarter. Finally, Partner Fund Management L.P. increased its position in Tenet Healthcare by 22.2% during the 2nd quarter. Partner Fund Management L.P. now owns 4,336,946 shares of the company’s stock valued at $145,591,000 after purchasing an additional 786,785 shares during the period.

Tenet Healthcare Company Profile

Tenet Healthcare Corporation operates as a diversified healthcare services company. It operates in three segments: Hospital Operations and Other, Ambulatory Care, and Conifer. The company's general hospitals offer acute care services, operating and recovery rooms, radiology and respiratory therapy services, clinical laboratories, and pharmacies.

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