Surgery Partners (NASDAQ:SGRY) Sees Large Volume Increase – Here’s What Happened

Surgery Partners, Inc. (NASDAQ:SGRY) saw strong trading volume on Tuesday. 2,536,213 shares traded hands during mid-day trading, an increase of 26% from the average daily volume of 2,019,249 shares. The stock last traded at $23.2150 and had previously closed at $23.25.

Surgery Partners News Summary

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

• Positive Sentiment: HealthSpan Partners agreed to acquire Surgery Partners in an all-cash transaction offering $23.50 per share, valuing the company at approximately $5.7 billion in enterprise value. The deal represents a substantial premium to SGRY’s pre-announcement trading level and provides shareholders with a defined exit value. Surgery Partners to be taken private by Bon Secours affiliate in $5.7 billion deal
• Positive Sentiment: The proposed takeover removes much of the uncertainty surrounding Surgery Partners’ standalone valuation and gives investors a potential cash realization. Reports indicate HealthSpan will acquire a majority stake, including an approximately 61.24% interest, in the transaction. HealthSpan Partners agreement to acquire a stake in Surgery Partners

Wall Street Analyst Weigh In

Several research analysts recently weighed in on SGRY shares. TD Cowen restated a “buy” rating and set a $19.00 price target on shares of Surgery Partners in a report on Friday, September 18th. JPMorgan Chase & Co. boosted their target price on Surgery Partners from $14.00 to $15.00 and gave the stock a “neutral” rating in a research note on Monday, September 14th. Benchmark reiterated a “buy” rating on shares of Surgery Partners in a report on Tuesday, August 11th. Weiss Ratings upgraded Surgery Partners from a “sell (e+)” rating to a “sell (d-)” rating in a report on Friday, October 16th. Finally, Royal Bank Of Canada cut Surgery Partners from a “moderate buy” rating to a “hold” rating and set a $23.50 price objective on the stock. in a research report on Monday. Five analysts have rated the stock with a Buy rating, five have assigned a Hold rating and one has assigned a Sell rating to the company’s stock. According to MarketBeat, the company has an average rating of “Hold” and an average price target of $19.91.

Surgery Partners Stock Performance

The company has a debt-to-equity ratio of 1.18, a quick ratio of 1.78 and a current ratio of 1.95. The company has a market cap of $3.04 billion, a PE ratio of -33.12, a price-to-earnings-growth ratio of 4.87 and a beta of 1.90. The company’s 50 day moving average price is $14.39 and its 200-day moving average price is $14.50.

Surgery Partners (NASDAQ:SGRY) last posted its quarterly earnings data on Monday, August 10th. The company reported $0.10 EPS for the quarter, beating the consensus estimate of $0.06 by $0.04. Surgery Partners had a positive return on equity of 0.88% and a negative net margin of 2.63%. The business had revenue of $848.90 million for the quarter, compared to the consensus estimate of $830.03 million. During the same quarter in the prior year, the business earned $0.17 earnings per share. Surgery Partners’s revenue for the quarter was up 2.7% on a year-over-year basis. Equities research analysts anticipate that Surgery Partners, Inc. will post 0.25 earnings per share for the current fiscal year.

Insider Activity at Surgery Partners

In related news, Director Teresa DeLuca bought 10,000 shares of Surgery Partners stock in a transaction on Tuesday, August 18th. The stock was acquired at an average price of $14.35 per share, with a total value of $143,500.00. Following the acquisition, the director directly owned 66,843 shares of the company’s stock, valued at $959,197.05. This represents a 17.59% increase in their ownership of the stock. The acquisition was disclosed in a document filed with the Securities & Exchange Commission, which is available through this hyperlink. 2.00% of the stock is owned by insiders.

Institutional Trading of Surgery Partners

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

Surgery Partners Company Profile

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.