Tenet Healthcare (THC) Downgraded to “Sell” at Zacks Investment Research

Tenet Healthcare (NYSE:THC) was downgraded by Zacks Investment Research from a “hold” rating to a “sell” rating in a research note issued on Saturday.

According to Zacks, “Tenet Healthcare’s shares have underperformed the industry in a year's time. The company has a high level of uncollectible accounts leading to mounting level of bad debt. Rising level of debt has led to a spike in interest expenses, weighing on margins. The company has also been suffering from lower revenues over past many quarters.  Tenet Healthcare has also seen its Zacks Consensus Estimate for 2018 earnings being revised downward in the past 60 days. Following lackluster third-quarter 2017 results, the company lowered its guidance for 2017. The company has also lowered its 2018 earnings guidance following the recent tax cut. However, accretive acquisitions have significantly strengthened the top line. Strategic divestitures helped streamline its core operations. Moreover, the company’s recently taken enterprise-wide cost reduction program is likely to favor earnings going forward.”

A number of other analysts also recently issued reports on THC. Royal Bank of Canada reiterated a “hold” rating and issued a $19.00 price target on shares of Tenet Healthcare in a report on Monday, September 25th. Robert W. Baird reiterated a “buy” rating and issued a $23.00 price target on shares of Tenet Healthcare in a report on Thursday, September 28th. SunTrust Banks set a $15.00 price target on shares of Tenet Healthcare and gave the company a “hold” rating in a report on Sunday, October 15th. Jefferies Group set a $20.00 price target on shares of Tenet Healthcare and gave the company a “buy” rating in a report on Monday, October 30th. Finally, Credit Suisse Group initiated coverage on shares of Tenet Healthcare in a report on Thursday, November 2nd. They issued a “neutral” rating and a $15.00 price target on the stock. Five analysts have rated the stock with a sell rating, six have given a hold rating and six have assigned a buy rating to the company. Tenet Healthcare presently has an average rating of “Hold” and an average price target of $18.50.

Shares of Tenet Healthcare (THC) traded up $0.96 during midday trading on Friday, reaching $17.24. 3,896,772 shares of the company’s stock were exchanged, compared to its average volume of 2,620,000. The company has a debt-to-equity ratio of 21.21, a quick ratio of 1.21 and a current ratio of 1.28. The company has a market cap of $1,740.00, a P/E ratio of -3.13, a P/E/G ratio of 3.20 and a beta of 1.17. Tenet Healthcare has a one year low of $12.25 and a one year high of $22.72.

Tenet Healthcare (NYSE:THC) last announced its quarterly earnings results on Friday, October 27th. The company reported ($0.17) earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of ($0.38) by $0.21. Tenet Healthcare had a negative net margin of 2.85% and a negative return on equity of 5.61%. equities analysts anticipate that Tenet Healthcare will post 0.69 earnings per share for the current fiscal year.

In other news, Director George Fredrick Smitherman sold 1,300 shares of the business’s stock in a transaction dated Monday, January 15th. The shares were sold at an average price of $38.50, for a total value of $50,050.00. Insiders own 3.10% of the company’s stock.

Institutional investors have recently bought and sold shares of the company. Boston Private Wealth LLC increased its holdings in shares of Tenet Healthcare by 13.9% in the 3rd quarter. Boston Private Wealth LLC now owns 77,505 shares of the company’s stock worth $1,273,000 after buying an additional 9,435 shares during the last quarter. Point72 Asset Management L.P. purchased a new position in shares of Tenet Healthcare during the 3rd quarter worth about $4,640,000. Proxima Capital Management LLC boosted its stake in shares of Tenet Healthcare by 8.3% during the 2nd quarter. Proxima Capital Management LLC now owns 103,939 shares of the company’s stock worth $2,010,000 after purchasing an additional 8,000 shares during the period. King Street Capital Management L.P. purchased a new position in shares of Tenet Healthcare during the 3rd quarter worth about $31,217,000. Finally, Scoggin Management LP purchased a new position in shares of Tenet Healthcare during the 3rd quarter worth about $657,000.

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Tenet Healthcare Company Profile

Tenet Healthcare Corporation (Tenet) is a healthcare services company. The Company operates regionally focused, integrated healthcare delivery networks in large urban and suburban markets in the United States. The Company’s segments include Hospital Operations and Other, Ambulatory Care and Conifer. As of December 31, 2016, its subsidiaries operated 79 hospitals, including three academic medical centers, two children’s hospitals, two specialty hospitals and one critical access hospital.

Analyst Recommendations for Tenet Healthcare (NYSE:THC)

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