Tenet Healthcare Corporation (THC) Testing Investors’ Patience Right Now

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    The Vanguard Group, Inc. recently announced the acquisition of new stake in Tenet Healthcare Corporation (NYSE:THC). The institutional investor has increased its shareholding in the Healthcare company by 1.42% to 12.39 million shares with purchase of 0.17 million shares. This fresh investment now brings its stake to 11.84% valued currently at $224.47 million. In addition, Harris Associates LP raised its holdings by 0.21 million to 6.39 million shares. And Camber Capital Management LP has lifted its position by 40.00% or 1.0 million shares – to 3.5 million shares.

    With over 1.0 million Tenet Healthcare Corporation (THC) shares trading Friday and a closing price of $24.82 on the day, the dollar volume was approximately $24.89 million. The shares have shown a positive weekly performance of 15.39% and its price on 07/24/20 lost nearly -0.20%. Currently, there are 104.35M common shares owned by the public and among those 102.84M shares have been available to trade.

    An analysis of what Wall Street brokers have to say about the expected price targets for this stock gives us this picture: 19 analysts who have offered their price forecasts for THC have a consensus price objective of $25.65. The analysts have set the share’s price value over the next 12 months at a high of $40.00 and a low of $19.00 should the stock experience a downside. Incidentally, analysts’ outlook for the Tenet Healthcare Corporation stock is 2.60 for the next 12 months. The average price target is 4.76% above its last price level and an upside to the estimated low will see the stock lose -30.63% over that period. But an upside of 37.95% will see the stock hit the forecast high price target while mean target price for the stock is $25.00.

    Insiders at the company have transacted a total of 95 times over the past 12 months, according to data filed with the U.S. Securities and Exchange Commission (SEC). 62 of these insider trades were purchases, accounting for 1,864,938 shares. Insider sales of the common stock occurred on 33 occasions, with total insider shares sold totaling 366,093 shares.

    The top 3 mutual fund holders in Tenet Healthcare Corporation are Vanguard Total Stock Market Index, iShares Core S&P Mid Cap ETF, and Vanguard Small Cap Index Fund. Vanguard Total Stock Market Index owns 2.97 million shares of the company’s stock, all valued at over $53.77 million. The company sold 26539.0 shares recently to bring their total holdings to about 2.84% of the shares outstanding. Vanguard Small Cap Index Fund sold 76991.0 shares to bring its total holdings to over 2.62 million shares at a value of $47.39 million. Vanguard Small Cap Index Fund now owns shares totaling to 2.50% of the shares outstanding.

    Shares of Tenet Healthcare Corporation (NYSE: THC) opened at $24.86, down -$0.01 from a prior closing price of $24.87. However, the script later closed the day at $24.82, down -0.20%. The company’s stock has a 5-day price change of 15.39% and 24.29% over the past three months. THC shares are trading -34.74% year to date (YTD), with the 12-month market performance up to 12.77% higher. It has a 12-month low price of $10.00 and touched a high of $39.37 over the same period. Currently, 1.0 million shares have been traded, compared to an average intraday trading volume of 2.27 million shares. The stock is trading above its simple moving averages at the SMA20, SMA50, and SMA200, as the current price level is off by 23.42%, 18.96%, and -3.77% respectively.

    Institutional ownership of Tenet Healthcare Corporation (NYSE: THC) shares accounts for 98.66% of the company’s 104.35M shares outstanding. Mutual fund holders own 37.91%, while other institutional holders and individual stakeholders account for 63.52% and 22.19% respectively.

    It has a market capitalization of $2.61B and a beta (3y monthly) value of 2.43. The earnings-per-share (ttm) stands at -$1.20. Price movements for the stock have been influenced by the stock’s volatility, which stands at 5.75% over the week and 6.70% over the month.

    Analysts forecast that Tenet Healthcare Corporation (THC) will achieve an EPS of -$0.71 for the current quarter, -$0.4 for the next quarter and $2.48 for 2021. The lowest estimate earnings-per-share for the quarter is -$2.17 while analysts give the company a high EPS estimate of $0.67. Comparatively, EPS for the current quarter was $0.56 a year ago. Earnings per share for the fiscal year are expected to decrease by -326.10%, and 125.16% over the next financial year. EPS should grow at an annualized rate of 11.76% over the next five years, compared to -54.90% over the past 5-year period.

    If you are looking to buy this stock, then you may note that the average analyst recommendation by 19 brokerage firm advisors rate Tenet Healthcare Corporation (THC) as a “Moderate Buy” at a consensus score of 2.60. Specifically, 6 Wall Street analysts polled rate the stock as a buy, while 12 of the 19 advise that investors “hold,” and 0 rated it as a “Sell.”

    Looking at the support for the THC, a number of firms have released research notes about the stock. RBC Capital Mkts stated their Outperform rating for the stock in a research note on March 11, 2020, with the firm’s price target at $32-$39. JP Morgan coverage for the Tenet Healthcare Corporation (THC) stock in a research note released on February 26, 2020 offered a Neutral rating with a price target of. UBS was of a view on December 09, 2019 that the stock is Buy, while Credit Suisse gave the stock Outperform rating on November 06, 2019, issuing a price target of $25- $36. Goldman on their part issued Neutral rating on August 14, 2019.

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