Zacks Investment Research downgraded shares of Tenet Healthcare (NYSE:THC) from a hold rating to a sell rating in a research report report published 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.”

THC has been the subject of a number of other research reports. Robert W. Baird reiterated a buy rating and issued a $23.00 price objective on shares of Tenet Healthcare in a research note on Thursday, September 28th. JPMorgan Chase & Co. cut Tenet Healthcare from a neutral rating to an underweight rating and set a $15.00 price objective for the company. in a research note on Thursday, December 14th. Morgan Stanley cut Tenet Healthcare from an equal weight rating to an underweight rating and set a $14.00 price objective for the company. in a research note on Wednesday, December 20th. Mizuho reiterated a hold rating on shares of Tenet Healthcare in a research note on Friday, November 10th. Finally, Goldman Sachs Group initiated coverage on Tenet Healthcare in a research note on Wednesday, January 3rd. They issued a neutral rating and a $15.00 price objective for the company. Five equities research analysts have rated the stock with a sell rating, six have issued a hold rating and six have assigned a buy rating to the company’s stock. The company has an average rating of Hold and an average target price of $18.50.

Tenet Healthcare (NYSE THC) traded up $0.96 during mid-day trading on Friday, reaching $17.24. The company had a trading volume of 3,899,194 shares, compared to its average volume of 2,670,000. The stock has a market capitalization of $1,740.00, a PE ratio of -3.13, a price-to-earnings-growth ratio of 3.39 and a beta of 1.17. Tenet Healthcare has a 12-month low of $12.25 and a 12-month high of $22.72. The company has a debt-to-equity ratio of 21.21, a quick ratio of 1.21 and a current ratio of 1.28.

Tenet Healthcare (NYSE:THC) last posted its earnings results on Friday, October 27th. The company reported ($0.17) earnings per share for the quarter, topping the 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%. research analysts predict that Tenet Healthcare will post 0.69 EPS for the current fiscal year.

In other news, Director George Fredrick Smitherman sold 1,300 shares of the business’s stock in a transaction that occurred on Monday, January 15th. The stock was 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.

Large investors have recently added to or reduced their stakes in the company. Riverhead Capital Management LLC increased its holdings in shares of Tenet Healthcare by 67.3% in the second quarter. Riverhead Capital Management LLC now owns 7,861 shares of the company’s stock valued at $152,000 after purchasing an additional 3,161 shares during the period. Flinton Capital Management LLC increased its holdings in shares of Tenet Healthcare by 65.7% in the second quarter. Flinton Capital Management LLC now owns 7,888 shares of the company’s stock valued at $153,000 after purchasing an additional 3,128 shares during the period. Pentwater Capital Management LP acquired a new position in shares of Tenet Healthcare in the third quarter valued at approximately $164,000. Russell Investments Group Ltd. increased its holdings in shares of Tenet Healthcare by 182.6% in the third quarter. Russell Investments Group Ltd. now owns 10,525 shares of the company’s stock valued at $173,000 after purchasing an additional 6,800 shares during the period. Finally, Cubist Systematic Strategies LLC acquired a new position in Tenet Healthcare during the third quarter worth $183,000.

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About Tenet Healthcare

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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