Tenet Healthcare Corporation [THC] is -24.35% lower this YTD. Is it still time to buy?

Tenet Healthcare Corporation [NYSE: THC] gained 9.52% or 2.5 points to close at $28.77 with a heavy trading volume of 1676430 shares. The company report on October 21, 2020 that Tenet Reports Third Quarter 2020 Results and Provides Update on Effects of COVID-19.

Net loss from continuing operations attributable to common shareholders in 3Q20 of $197 million (which included an after-tax loss of $237 million associated with early retirement of debt transactions) versus a net loss from continuing operations of $227 million in 3Q19 (which included an after-tax loss of $178 million associated with early retirement of debt transactions).

Debt refinancing during 3Q20 eliminated any significant debt maturities until June 2023 and reduces future annual cash interest expense by approximately $50 million.

It opened the trading session at $26.60, the shares rose to $29.13 and dropped to $26.51, the range by which the price of stock traded the whole day. The daily chart for THC points out that the company has recorded 47.31% gains over the past six months. However, it is still -187.7% lower than its most recent low trading price.

If we look at the average trading volume of 1.39M shares, THC reached to a volume of 1676430 in the most recent trading day, which is why market watchdogs consider the stock to be active.

Here is what top equities market gurus are saying about Tenet Healthcare Corporation [THC]:

Based on careful and fact-backed analyses by Wall Street experts, the current consensus on the target price for THC shares is $31.00 per share. Analysis on target price and performance of stocks is usually carefully studied by market experts, and the current Wall Street consensus on THC stock is a recommendation set at 2.60. This rating represents a strong Buy recommendation, on the scale from 1 to 5, where 5 would mean strong sell, 4 represents Sell, 3 is Hold, and 2 indicates Buy.

JP Morgan have made an estimate for Tenet Healthcare Corporation shares, keeping their opinion on the stock as Underweight, with their previous recommendation back on September 21, 2020. While these analysts kept the previous recommendation, RBC Capital Mkts raised their target price from $32 to $39. The new note on the price target was released on March 11, 2020, representing the official price target for Tenet Healthcare Corporation stock.

The Average True Range (ATR) for Tenet Healthcare Corporation is set at 1.84, with the Price to Sales ratio for THC stock in the period of the last 12 months amounting to 0.18. Price to Free Cash Flow for THC in the course of the last twelve months was 1.06 with Quick ratio for the last quarter at 1.30.

Trading performance analysis for THC stock

Tenet Healthcare Corporation [THC] gain into the green zone at the end of the last week, gaining into a positive trend and gaining by 14.12. With this latest performance, THC shares gained by 5.12% in over the last four-week period, additionally plugging by 47.31% over the last 6 months – not to mention a drop of -3.03% in the past year of trading.

Overbought and oversold stocks can be easily traced with the Relative Strength Index (RSI), where an RSI result of over 70 would be overbought, and any rate below 30 would indicate oversold conditions. An RSI rate of 50 would represent a neutral market momentum. The current RSI for THC stock in for the last two-week period is set at 54.60, with the RSI for the last a single of trading hit 58.39, and the three-weeks RSI is set at 54.58 for Tenet Healthcare Corporation [THC]. The present Moving Average for the last 50 days of trading for this stock 27.24, while it was recorded at 26.87 for the last single week of trading, and 24.08 for the last 200 days.

Tenet Healthcare Corporation [THC]: A deeper dive into fundamental analysis

Operating Margin for any stock indicates how profitable investing would be, and Tenet Healthcare Corporation [THC] shares currently have an operating margin of +9.09 and a Gross Margin at +9.09. Tenet Healthcare Corporation’s Net Margin is presently recorded at -1.32.

Return on Total Capital for THC is now 9.68, given the latest momentum, and Return on Invested Capital for the company is -1.64. Additionally, THC Total Debt to Total Capital is recorded at 102.41, with Total Debt to Total Assets ending up at 67.53.

Reflecting on the efficiency of the workforce at the company, Tenet Healthcare Corporation [THC] managed to generate an average of -$2,139 per employee. Receivables Turnover for the company is 5.99 with a Total Asset Turnover recorded at a value of 0.81.Tenet Healthcare Corporation’s liquidity data is similarly interesting compelling, with a Quick Ratio of 1.30 and a Current Ratio set at 1.30.

Tenet Healthcare Corporation [THC]: An earnings per share (EPS) analysis

With the latest financial reports released by the company, Tenet Healthcare Corporation posted 0.99/share EPS, while the average EPS was predicted by analysts to be reported at 0.98/share. When compared, the two values demonstrate that the company surpassed the estimates by a Surprise Factor of 1.00%. The progress of the company may be observed through the prism of EPS growth rate, while Wall Street analysts are focusing on predicting the 5-year EPS growth rate for THC. When it comes to the mentioned value, analysts are expecting to see the 5-year EPS growth rate for Tenet Healthcare Corporation go to 9.10%.

An analysis of insider ownership at Tenet Healthcare Corporation [THC]

There are presently around $2,954 million, or 98.90% of THC stock, in the hands of institutional investors. The top three institutional holders of THC stocks are: GLENVIEW CAPITAL MANAGEMENT, LLC with ownership of 19,761,353, which is approximately 0.13% of the company’s market cap and around 0.90% of the total institutional ownership; BLACKROCK INC., holding 12,394,095 shares of the stock with an approximate value of $356.58 million in THC stocks shares; and VANGUARD GROUP INC, currently with $346.52 million in THC stock with ownership of nearly -5.056% of the company’s market capitalization.

Positions in Tenet Healthcare Corporation stocks held by institutional investors increased at the end of October and at the time of the October reporting period, where 119 institutional holders increased their position in Tenet Healthcare Corporation [NYSE:THC] by around 9,759,164 shares. Additionally, 131 investors decreased positions by around 12,777,634 shares, while 44 investors held positions by with 80,154,122 shares. The mentioned changes placed institutional holdings at 102,690,920 shares, according to the latest SEC report filing. THC stock had 36 new institutional investments in for a total of 3,961,827 shares, while 52 institutional investors sold positions of 6,440,632 shares during the same period.

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