Surgery Partners (NASDAQ:SGRY) Sets New 52-Week Low on Disappointing Earnings

Surgery Partners, Inc. (NASDAQ:SGRY) shares hit a new 52-week low on Tuesday following a weaker than expected earnings announcement. The stock traded as low as $12.25 and last traded at $12.4250, with a volume of 1596453 shares trading hands. The stock had previously closed at $15.88.

The company reported $0.12 EPS for the quarter, missing the consensus estimate of $0.31 by ($0.19). The firm had revenue of $885.00 million during the quarter, compared to analyst estimates of $866.54 million. Surgery Partners had a negative net margin of 2.35% and a positive return on equity of 1.28%. The firm’s revenue for the quarter was up 2.4% on a year-over-year basis. During the same quarter in the prior year, the firm posted $0.44 EPS.

Surgery Partners declared that its board has approved a share buyback plan on Thursday, February 26th that permits the company to repurchase $200.00 million in outstanding shares. This repurchase authorization permits the company to purchase up to 9.7% of its stock through open market purchases. Stock repurchase plans are typically an indication that the company’s leadership believes its shares are undervalued.

Surgery Partners News Roundup

Here are the key news stories impacting Surgery Partners this week:

• Positive Sentiment: Board authorized a $200 million share repurchase (up to ~9.7% of shares), signaling management believes the stock is undervalued and should support EPS/float reduction over time. RTT News
• Positive Sentiment: Acquisition: Surgery Partners is buying Preferred Vascular Group (PVG), an ASC operator focused on dialysis-access procedures (8 ASCs in GA and OH). This expands SGRY’s ASC footprint in a specialized, recurring-procedure niche and could drive incremental revenue and cross-selling opportunities. PR Newswire
• Neutral Sentiment: Q4 2025 materials published — earnings call transcript and presentation are available; they detail a mixed quarter (revenue up y/y, EPS miss) and management commentary that investors should review for margin trends and case-volume guidance. Use the transcripts to assess forward cadence. Earnings Call Transcript
• Negative Sentiment: Analyst pressure: Barclays cut its price target from $18 to $14 and moved to an “equal weight” rating, reducing a key buy-side endorsement and potentially dampening near-term demand. Benzinga
• Negative Sentiment: Shareholder litigation inquiry: Johnson Fistel announced an investigation into potential claims against Surgery Partners’ executives, which can create legal risk, distraction, and potential future costs. GlobeNewswire
• Negative Sentiment: Updated FY2026 guidance appeared soft versus consensus (revenue guidance noted roughly $3.4–3.5B vs. consensus ~$3.5B; EPS guidance was unclear in the release), which may raise questions about margin outlook and growth assumptions. Investors should await clarified guidance or management commentary.

Analyst Ratings Changes

A number of research firms recently commented on SGRY. Barclays decreased their price target on Surgery Partners from $18.00 to $14.00 and set an “equal weight” rating on the stock in a research report on Tuesday. Mizuho decreased their target price on Surgery Partners from $22.00 to $19.00 and set an “outperform” rating on the stock in a report on Thursday, December 18th. JPMorgan Chase & Co. lowered their target price on Surgery Partners from $27.00 to $20.00 and set a “neutral” rating for the company in a research note on Monday, November 24th. Benchmark reiterated a “buy” rating on shares of Surgery Partners in a research report on Tuesday. Finally, UBS Group lowered their price objective on shares of Surgery Partners from $34.00 to $29.00 and set a “buy” rating for the company in a research report on Thursday, November 13th. Eight research analysts have rated the stock with a Buy rating, two have given a Hold rating and one has assigned a Sell rating to the company’s stock. Based on data from MarketBeat.com, the company currently has an average rating of “Moderate Buy” and a consensus price target of $25.90.

Institutional Inflows and Outflows

A number of large investors have recently added to or reduced their stakes in the business. Alpine Global Management LLC acquired a new stake in shares of Surgery Partners during the 4th quarter worth approximately $175,000. Empowered Funds LLC boosted its stake in Surgery Partners by 1,340.9% in the fourth quarter. Empowered Funds LLC now owns 161,419 shares of the company’s stock valued at $2,494,000 after acquiring an additional 150,216 shares during the last quarter. One68 Global Capital LLC acquired a new stake in Surgery Partners during the 4th quarter worth $371,000. Man Group plc acquired a new position in shares of Surgery Partners in the 4th quarter valued at $5,080,000. Finally, Inspire Investing LLC lifted its stake in shares of Surgery Partners by 45.4% in the 4th quarter. Inspire Investing LLC now owns 30,073 shares of the company’s stock valued at $465,000 after purchasing an additional 9,384 shares during the period.

Surgery Partners Price Performance

The firm has a market capitalization of $1.82 billion, a P/E ratio of -22.71 and a beta of 1.95. The company has a 50-day moving average price of $15.28 and a 200-day moving average price of $18.24. The company has a debt-to-equity ratio of 1.15, a quick ratio of 1.72 and a current ratio of 1.87.

Surgery Partners Company Profile

Surgery Partners, Inc operates as a healthcare services provider specializing in the management and ownership of ambulatory surgery centers, surgical hospitals and multispecialty rehabilitation hospitals across the United States. Through its network of facilities, the company coordinates and delivers a broad range of outpatient surgical procedures in specialties such as orthopedics, ophthalmology, otolaryngology, gastroenterology, pain management and general surgery. Its integrated platform offers ancillary services including on-site imaging, laboratory testing, infusion therapy and physical, occupational and speech rehabilitation.

Since its establishment in 2010 and subsequent public listing in 2015, Surgery Partners has focused on strategic partnerships with physicians and health systems to expand access to cost-effective outpatient care.