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

Tenet Healthcare (NYSE:THC) was downgraded by Zacks Investment Research from a “hold” rating to a “sell” rating in a research report issued to clients and investors 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.”

Other analysts have also issued reports about the stock. Citigroup upgraded shares of Tenet Healthcare from a “neutral” rating to a “buy” rating in a research report on Tuesday, December 12th. Robert W. Baird restated a “buy” rating and set a $23.00 price target on shares of Tenet Healthcare in a research report on Thursday, September 28th. Jefferies Group set a $20.00 price target on shares of Tenet Healthcare and gave the company a “buy” rating in a research report on Monday, October 30th. Leerink Swann restated a “buy” rating and set a $27.00 price target on shares of Tenet Healthcare in a research report on Wednesday, December 20th. Finally, Morgan Stanley cut their price target on shares of Tenet Healthcare from $15.00 to $14.00 and set an “equal weight” rating for the company in a research report on Thursday, November 9th. Five investment analysts have rated the stock with a sell rating, six have assigned a hold rating and six have issued a buy rating to the company. The stock has a consensus rating of “Hold” and a consensus price target of $18.50.

Tenet Healthcare (NYSE THC) traded up $0.96 on Friday, reaching $17.24. The company had a trading volume of 3,896,772 shares, compared to its average volume of 2,620,000. The company has a market capitalization of $1,740.00, a PE ratio of -3.13, a PEG ratio of 3.20 and a beta of 1.17. The company has a current ratio of 1.28, a quick ratio of 1.21 and a debt-to-equity ratio of 21.21. Tenet Healthcare has a 1-year low of $12.25 and a 1-year high of $22.72.

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

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

Several institutional investors have recently bought and sold shares of THC. Riverhead Capital Management LLC boosted its holdings in shares of Tenet Healthcare by 67.3% during the second quarter. Riverhead Capital Management LLC now owns 7,861 shares of the company’s stock worth $152,000 after purchasing an additional 3,161 shares during the period. Flinton Capital Management LLC boosted its holdings in shares of Tenet Healthcare by 65.7% during the second quarter. Flinton Capital Management LLC now owns 7,888 shares of the company’s stock worth $153,000 after purchasing an additional 3,128 shares during the period. Pentwater Capital Management LP purchased a new stake in shares of Tenet Healthcare during the third quarter worth about $164,000. Russell Investments Group Ltd. boosted its holdings in shares of Tenet Healthcare by 182.6% during the third quarter. Russell Investments Group Ltd. now owns 10,525 shares of the company’s stock worth $173,000 after purchasing an additional 6,800 shares during the period. Finally, Cubist Systematic Strategies LLC purchased a new stake in shares of Tenet Healthcare during the third quarter worth about $183,000.

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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.

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