Surgery Partners (NASDAQ:SGRY) Sets New 12-Month High After Better-Than-Expected Earnings

Shares of Surgery Partners, Inc. (NASDAQ:SGRY) hit a new 52-week high during trading on Monday following a stronger than expected earnings report. 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, topping analysts’ consensus estimates of $0.11 by $0.05. Surgery Partners had a negative net margin of 2.59% and a positive return on equity of 0.96%. The business had revenue of $815.30 million for the quarter, compared to analysts’ expectations of $820.96 million. During the same period in the previous year, the company posted $0.13 earnings per share. The business’s revenue for the quarter was down .8% compared to the same quarter last year.

Key Surgery Partners News

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

Wall Street Analyst Weigh In

A number of analysts have recently issued reports on SGRY shares. Cantor Fitzgerald lowered Surgery Partners from an “overweight” rating to a “hold” rating in a research report on Monday, October 26th. JPMorgan Chase & Co. increased their price target on Surgery Partners from $14.00 to $15.00 and gave the company a “neutral” rating in a report on Monday, September 14th. UBS Group lowered Surgery Partners from a “buy” rating to a “hold” rating and raised their price objective for the company from $21.00 to $23.50 in a research note on Wednesday, October 28th. Stonex Financial downgraded Surgery Partners from a “strong-buy” rating to a “hold” rating in a report on Tuesday, October 27th. Finally, Mizuho lowered Surgery Partners from an “outperform” rating to a “neutral” rating and upped their target price for the company from $19.00 to $25.00 in a research report on Wednesday. Two research analysts have rated the stock with a Buy rating, nine have issued a Hold rating and one has assigned a Sell rating to the company’s stock. Based on data from MarketBeat.com, the stock currently has an average rating of “Hold” and a consensus target price of $20.10.

Insider Buying and Selling

In other news, Director Teresa DeLuca acquired 10,000 shares of the stock in a transaction that occurred on Tuesday, August 18th. The stock was purchased at an average cost of $14.35 per share, with a total value of $143,500.00. Following the completion of the acquisition, the director directly owned 66,843 shares in the company, valued at $959,197.05. This represents a 17.59% increase in their ownership of the stock. The acquisition was disclosed in a legal filing with the SEC, which can be accessed through the SEC website. Company insiders own 2.00% of the company’s stock.

Institutional Inflows and Outflows

A number of large investors have recently bought and sold shares of the company. Public Employees Retirement System of Ohio bought a new stake in shares of Surgery Partners in the 2nd quarter valued at approximately $38,000. PNC Financial Services Group Inc. increased its stake in Surgery Partners by 239.6% during the first quarter. PNC Financial Services Group Inc. now owns 2,907 shares of the company’s stock valued at $35,000 after purchasing an additional 2,051 shares during the last quarter. Fifth Third Bancorp increased 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 during the last quarter. Empowered Funds LLC bought a new position in shares of Surgery Partners in the 2nd quarter worth about $216,000. Finally, Vise Technologies Inc. bought a new position in shares of Surgery Partners in the 3rd quarter worth about $191,000.

Surgery Partners Price Performance

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

Surgery Partners Company Profile

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.