1. Tenet Healthcare Corporation (NYSE:THC)
Number of Hedge Fund Holders: 59
Tenet Healthcare Corporation (NYSE:THC) is a healthcare services company that operates hospitals, surgical centers, and other healthcare facilities. The company offers a broad range of healthcare services, including diagnostic imaging, laboratory services, and rehabilitation services. It is one of the best healthcare stocks to invest in.
On April 20, Cantor Fitzgerald analyst Sarah James gave Tenet Healthcare Corporation (NYSE:THC) an Overweight rating and set a price target of $73. The analyst believes that Tenet Healthcare Corporation (NYSE:THC) is well-positioned to experience significant margin expansion over the long term due to its recent acquisitions and the establishment of new facilities. The company is also reportedly gaining a larger share of the ambulatory surgery center market, which is currently growing at a fast pace. Additionally, the company is improving its margin through commercial pricing strategies, the analyst told investors in a research note.
According to Insider Monkey’s fourth quarter database, 59 hedge funds were bullish on Tenet Healthcare Corporation (NYSE:THC), compared to 60 funds in the prior quarter. Larry Robbins’ Glenview Capital is the biggest stakeholder of the company, with 8.9 million shares worth $434 million.
Greenlight Capital made the following comment about Tenet Healthcare Corporation (NYSE:THC) in its Q4 2022 investor letter:
“Though we believe we are in the middle stages of a bear market, we did establish a new medium-sized long position in Tenet Healthcare Corporation (NYSE:THC) during the fourth quarter.
THC is an operator of hospitals and ambulatory surgery centers (ASC). In recent years, the company has grown and transitioned its business mix towards its higher-margin ASCs. This shift has enabled the company to generate significant, and what we believe to be sustainable, cash flows.
During 2022, the company lowered its guidance due to COVID and inflationary headwinds, resulting in its shares declining by more than 50% year-to-date through late October. We believe this pullback offered an attractive opportunity to participate in the company’s transformation, as we expect its ASC growth to remain strong and its now smaller hospital portfolio to improve from both a cost and volume perspective. We acquired our shares from late December through the beginning of January for an average price of $48.61, or 8.7x 2023 consensus earnings. THC recently announced and began its plan to repurchase about 20% of the outstanding shares by the end of 2024.”
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