Merrill Lynch Downgrades Tenet Healthcare to Hold

By Jason Carr

In a report released today, Kevin Fischbeck from Merrill Lynch downgraded Tenet Healthcare (NYSE: THC) to Hold, with a price target of $25. The company’s shares closed yesterday at $20.27.

According to, Fischbeck is a 4-star analyst with an average return of 9.1% and a 62.7% success rate. Fischbeck covers the Healthcare sector, focusing on stocks such as Health Insurance Innovations, WellCare Health Plans, and Surgery Partners Inc.

Tenet Healthcare has an analyst consensus of Moderate Buy, with a price target consensus of $28.

Based on Tenet Healthcare’s latest earnings report from March 31, the company posted quarterly revenue of $5.42B and quarterly net profit of -$59M. In comparison, last year the company earned revenue of $5.06B and had a net profit of -$29M.

Based on the recent corporate insider activity of 31 insiders, corporate insider sentiment is positive on the stock. This means that over the past quarter there has been an increase of insiders buying their shares of THC in relation to earlier this year. Most recently, in August 2015, Glenview Capital Management, Llc, a Major Shareholder at THC bought 500,000 shares for a total of $24,194,500.

Tenet Healthcare Corp. provides health care services. It operates through the following segments: Hospital Operations and Other, and Conifer. The company through its subsidiaries and affiliates owns and operates acute care hospitals, ambulatory surgery centers, diagnostic imaging centers and related health care facilities. Its business is focused on providing acute care treatment, including inpatient care, intensive care, cardiac care, radiology services and emergency medical treatment, as well as outpatient services. Tenet Healthcare also operates revenue cycle management and patient communications services businesses through its Conifer Health Solutions subsidiary. The company was founded in 1975 and is headquartered in Dallas, TX.