Violich Capital Management Increases Stake in Tenet Healthcare

Violich Capital Management Inc. has increased its investment in Tenet Healthcare Corporation (NYSE: THC) by 7.0% during the second quarter of 2023. The institutional investor disclosed this information in its latest 13F filing with the Securities and Exchange Commission. Following the acquisition of 125 additional shares, Violich now holds a total of 1,905 shares valued at approximately $335,000.

Other prominent investors have also made adjustments to their holdings in Tenet Healthcare. In the first quarter, US Bancorp DE raised its stake by 0.8%, acquiring an additional 68 shares, bringing its total to 8,620 shares, valued at $1,159,000. Farther Finance Advisors LLC increased its holdings by 2.8% in the second quarter, now owning 2,615 shares worth $460,000 after acquiring 70 shares. Similarly, Lindbrook Capital LLC raised its stake by 5.3%, acquiring 72 shares to hold a total of 1,427 shares valued at $192,000.

Additionally, Signaturefd LLC boosted its investment by 11.2%, now owning 732 shares valued at $129,000, following the purchase of 74 shares. Vista Investment Partners LLC also increased its stake slightly by 0.3%, now holding 25,257 shares worth $4,445,000. Institutional investors and hedge funds currently own approximately 95.44% of Tenet Healthcare’s stock.

Insider Transactions Raise Questions

In related news, insider activity at Tenet Healthcare has drawn attention. Director Christopher S. Lynch sold 3,952 shares of the company’s stock on August 19, 2023, at an average price of $176.39, resulting in a total transaction value of approximately $697,093.28. Following this sale, Lynch’s ownership decreased by 24.23% to 12,358 shares, valued at around $2,179,827.62.

Executive Vice President Lisa Y. Foo also participated in recent transactions, selling 8,000 shares on August 20, 2023, for an average price of $179.53. This transaction totaled $1,436,240.00 and represented a 27.70% decrease in her ownership, leaving her with 20,878 shares, valued at approximately $3,748,227.34. Over the past three months, insiders have sold a total of 90,722 shares valued at $17,161,015, with corporate insiders owning just 0.81% of the stock.

Tenet Healthcare Financial Performance

Shares of Tenet Healthcare opened at $199.89 on a recent trading day, with a 50-day moving average of $189.23 and a 200-day moving average of $167.02. The company boasts a market capitalization of $17.66 billion, a P/E ratio of 12.80, and a P/E/G ratio of 0.86. It maintains a debt-to-equity ratio of 2.39 and a current ratio of 1.71.

Tenet Healthcare recently reported its quarterly earnings on July 22, 2023, surpassing analysts’ expectations. The company posted earnings per share (EPS) of $4.02, exceeding the consensus estimate of $2.84 by $1.18. Revenue for the quarter reached $5.27 billion, outperforming the estimated $5.16 billion. The company also recorded a net margin of 7.17% and a return on equity of 24.69%, with quarterly revenue increasing by 3.2% compared to the same period last year.

Looking ahead, Tenet Healthcare has projected its fiscal year 2025 guidance between 15.550 and 16.210 EPS. Analysts anticipate that the company will report an EPS of 12.24 for the current fiscal year, indicating continued optimism about its financial trajectory.

Tenet Healthcare Corporation operates as a diversified healthcare services provider in the United States, functioning through two main segments: Hospital Operations and Services, and Ambulatory Care. This includes a range of acute care services, clinical laboratories, and pharmacies, positioning Tenet Healthcare as a significant player in the healthcare sector.