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

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

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.”

THC has been the subject of a number of other reports. Robert W. Baird reaffirmed a buy rating and set a $35.00 price target on shares of Tenet Healthcare in a research report on Wednesday, November 7th. UBS Group began coverage on shares of Tenet Healthcare in a research report on Thursday, November 15th. They issued a neutral rating and a $26.00 price target on the stock. ValuEngine raised shares of Tenet Healthcare from a sell rating to a hold rating in a report on Tuesday, November 27th. Deutsche Bank initiated coverage on shares of Tenet Healthcare in a research note on Thursday, January 3rd. They issued a hold rating and a $20.00 target price for the company. Finally, Raymond James reiterated a buy rating and set a $37.00 price target on shares of Tenet Healthcare in a research report on Monday, December 3rd. Three investment analysts have rated the stock with a sell rating, eleven have assigned a hold rating and four have given a buy rating to the company. The company currently has an average rating of Hold and a consensus price target of $31.44.

NYSE THC opened at $21.69 on Thursday. The company has a market cap of $2.15 billion, a price-to-earnings ratio of 26.78, a PEG ratio of 0.58 and a beta of 1.34. The company has a debt-to-equity ratio of 21.55, a current ratio of 1.06 and a quick ratio of 0.99. Tenet Healthcare has a 1-year low of $15.40 and a 1-year high of $39.74.

Tenet Healthcare (NYSE:THC) last announced its earnings results on Monday, November 5th. The company reported $0.29 EPS for the quarter, topping 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 firm had revenue of $4.49 billion during the quarter, compared to analysts’ expectations of $4.37 billion. During the same quarter in the previous year, the business earned ($0.17) EPS. The company’s quarterly revenue was down 2.1% on a year-over-year basis. As a group, research analysts forecast that Tenet Healthcare will post 1.61 EPS for the current fiscal year.

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

About Tenet Healthcare

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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