Violich Capital Management Increases Stake in Tenet Healthcare

Violich Capital Management Inc. has increased its stake in Tenet Healthcare Corporation by 7.0% during the second quarter of 2024, according to the firm’s latest 13F filing with the Securities and Exchange Commission. This institutional investor now holds a total of 1,905 shares of Tenet Healthcare stock after acquiring an additional 125 shares. The value of Violich Capital Management’s holdings in the company stands at approximately $335,000.

Several other large investors have also adjusted their positions in Tenet Healthcare recently. US Bancorp DE raised its holdings by 0.8% in the first quarter, bringing its total to 8,620 shares valued at $1,159,000. Farther Finance Advisors LLC increased its stake by 2.8% in the second quarter, now owning 2,615 shares worth $460,000. Additionally, Lindbrook Capital LLC boosted its holdings by 5.3% during the first quarter, resulting in ownership of 1,427 shares valued at $192,000.

Signaturefd LLC also enhanced its position, increasing its ownership by 11.2% during the second quarter, bringing its total to 732 shares valued at $129,000. Vista Investment Partners LLC made a smaller increase of 0.3%, now holding 25,257 shares worth $4,445,000. Currently, institutional investors and hedge funds own 95.44% of Tenet Healthcare’s stock.

Insider Transactions at Tenet Healthcare

Recent insider activity at Tenet Healthcare reveals significant stock sales by key executives. On August 19, 2024, Director Christopher S. Lynch sold 3,952 shares at an average price of $176.39, resulting in total proceeds of $697,093.28. Following this transaction, Lynch holds 12,358 shares valued at approximately $2,179,827.62, marking a 24.23% decrease in his ownership.

Additionally, Executive Vice President Lisa Y. Foo sold 8,000 shares on August 20, 2024, at an average price of $179.53, generating total proceeds of $1,436,240.00. Foo now owns 20,878 shares valued at approximately $3,748,227.34, reflecting a 27.70% decline in ownership. Over the past three months, insiders have sold a total of 90,722 shares valued at $17,161,015, with corporate insiders owning only 0.81% of the stock.

Tenet Healthcare’s Financial Performance

Tenet Healthcare’s stock opened at $199.89 on the trading day following these developments. The company has a market capitalization of $17.66 billion and a price-to-earnings (P/E) ratio of 12.80. Its 50-day moving average stands at $189.23, while the 200-day moving average is $167.02.

The company reported its quarterly earnings on July 22, 2024, revealing earnings per share (EPS) of $4.02, exceeding analysts’ expectations of $2.84 by $1.18. Tenet Healthcare generated revenues of $5.27 billion for the quarter, surpassing the consensus estimate of $5.16 billion. The firm achieved a net margin of 7.17% and a return on equity of 24.69%, with quarterly revenue up 3.2% compared to the same period last year.

Looking ahead, Tenet Healthcare has set its fiscal year 2025 guidance at an EPS range of 15.550-16.210. Analysts project that the company will achieve an EPS of 12.24 for the current fiscal year.

Tenet Healthcare Corporation operates as a diversified healthcare services provider in the United States, focusing on Hospital Operations and Services as well as Ambulatory Care. Its facilities deliver a wide range of acute care services, including clinical laboratories, pharmacies, and various therapeutic services.