Surgery Partners, Inc. (NASDAQ:SGRY) Stock Has Average Target Price of $19.00 According to Brokerages

Surgery Partners, Inc. (NASDAQ:SGRY) has received a consensus rating of “Hold” from the eleven analysts that are currently covering the firm, Marketbeat.com reports. One analyst has rated the stock with a sell recommendation, five have issued a hold recommendation and five have given a buy recommendation to the company. The average twelve-month price objective among brokers that have covered the stock in the last year is $19.91.

Several equities research analysts have commented on SGRY shares. TD Cowen reaffirmed a “buy” rating and issued a $19.00 price target on shares of Surgery Partners in a report on Friday, September 18th. Royal Bank Of Canada lowered Surgery Partners from an “outperform” rating to a “sector perform” rating and set a $23.50 price objective for the company. in a research note on Monday. Weiss Ratings raised Surgery Partners from a “sell (e+)” rating to a “sell (d-)” rating in a report on Friday, October 16th. Cantor Fitzgerald cut Surgery Partners from an “overweight” rating to a “neutral” rating in a report on Monday. Finally, Raymond James Financial set a $23.50 target price on Surgery Partners in a report on Monday.

Surgery Partners News Summary

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

• Positive Sentiment: HealthSpan will pay $23.50 per share, implying a substantial premium to Surgery Partners’ pre-announcement trading level. The transaction is expected to involve HealthSpan acquiring approximately 61.24% of the company and taking it private, giving investors a clear cash-out value and explaining the sharp increase in SGRY shares. Reuters: Surgery Partners to be taken private by Bon Secours affiliate in $5.7 billion deal
• Positive Sentiment: The deal provides an exit for public shareholders and follows earlier reports that Bon Secours was in advanced negotiations to acquire a majority stake in the Bain Capital-backed ambulatory-care operator. Trading was temporarily halted for pending news as investors awaited confirmation. The Wall Street Journal: Bon Secours Affiliate to Acquire Surgery Partners
• Neutral Sentiment: One market-data update reported short interest of zero shares and a zero-day short-interest ratio as of October 26. This suggests short covering is unlikely to be the primary reason for the move; the takeover announcement is the dominant catalyst.
• Negative Sentiment: Law firms Ademi and Halper Sadeh announced investigations into whether the $23.50 offer fairly values Surgery Partners, whether directors adequately protected shareholders, and whether deal protections or insider benefits limit competing bids. These reviews could create uncertainty or delay completion, although they may also pressure the company to seek improved terms. Ademi LLP shareholder alert

Surgery Partners Stock Up 47.6%

SGRY stock opened at $23.25 on Tuesday. The company has a market capitalization of $3.04 billion, a P/E ratio of -33.21, a price-to-earnings-growth ratio of 4.87 and a beta of 1.90. Surgery Partners has a 12 month low of $11.41 and a 12 month high of $23.44. The firm’s fifty day simple moving average is $14.39 and its 200-day simple moving average is $14.50. The company has a debt-to-equity ratio of 1.18, a current ratio of 1.95 and a quick ratio of 1.78.

Surgery Partners (NASDAQ:SGRY) last issued its earnings results on Monday, August 10th. The company reported $0.10 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.06 by $0.04. The firm had revenue of $848.90 million during the quarter, compared to analysts’ expectations of $830.03 million. Surgery Partners had a negative net margin of 2.63% and a positive return on equity of 0.88%. The firm’s revenue was up 2.7% compared to the same quarter last year. During the same quarter last year, the company posted $0.17 earnings per share. As a group, equities research analysts forecast that Surgery Partners will post 0.25 earnings per share for the current year.

Insider Transactions at Surgery Partners

In other news, Director Teresa DeLuca bought 10,000 shares of the business’s stock in a transaction dated Tuesday, August 18th. The stock was purchased at an average cost of $14.35 per share, with a total value of $143,500.00. Following the acquisition, the director directly owned 66,843 shares in the company, valued at $959,197.05. This trade represents a 17.59% increase in their ownership of the stock. The acquisition was disclosed in a legal filing with the SEC, which is accessible through this hyperlink. Insiders own 2.00% of the company’s stock.

Institutional Inflows and Outflows

A number of large investors have recently modified their holdings of the company. Inspire Investing LLC boosted its stake in shares of Surgery Partners by 10.1% during the 3rd quarter. Inspire Investing LLC now owns 44,768 shares of the company’s stock worth $621,000 after acquiring an additional 4,099 shares in the last quarter. TD Waterhouse Canada Inc. boosted its position in Surgery Partners by 18.3% during the third quarter. TD Waterhouse Canada Inc. now owns 196,887 shares of the company’s stock worth $2,601,000 after purchasing an additional 30,476 shares in the last quarter. Squarepoint Ops LLC acquired a new stake in Surgery Partners in the second quarter valued at approximately $308,000. Varde Management L.P. grew its holdings in Surgery Partners by 32.8% in the second quarter. Varde Management L.P. now owns 1,003,447 shares of the company’s stock valued at $16,858,000 after purchasing an additional 248,009 shares during the period. Finally, Penn Capital Management Company LLC acquired a new stake in Surgery Partners in the second quarter valued at approximately $2,941,000.

About Surgery Partners

Surgery Partners, Inc is a U.S.-based healthcare services company that operates and manages ambulatory surgery centers and surgical hospitals. The company works with physicians, health systems and other healthcare providers to deliver outpatient surgical care in facilities designed for same-day procedures.

Its facilities provide surgical services across specialties such as orthopedics, pain management, ophthalmology, gastroenterology, urology, gynecology and general surgery. Surgery Partners also supports its operations with clinical, administrative and revenue-cycle services intended to help physicians and facility partners manage patient care and practice operations.

Founded in 2004 and headquartered in Brentwood, Tennessee, Surgery Partners has expanded its platform through acquisitions, joint ventures and other partnerships.