Einhorn Reveals Long Position In Tenet Healthcare $THC Stock

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The famous investor David Einhorn revealed that he has taken a long position in Tenet Healthcare $THC stock. The reveal was made to CNBC on March 1, 2023. A Resurrection Cross seems imminent in $THC stock in the coming week or so.

Tenet Healthcare stock chart on March 1 2023 in uptrend channel pattern
Tenet Healthcare stock chart on March 1, 2023, in uptrend channel pattern

The stock has been trading in an uptrend channel since November of 2022, after bottoming with the entire market in October 2022.

In the fourth quarter, Einhorn opened a new long position in Tenet Healthcare. While the hospital operator struggled last year and missed earnings as it grappled with issues like labor shortage, he told CNBC that it trades a a single-digits multiple and offers a “relatively stable and recession resistant” business.

“You have a company that is now beginning to really return capital to shareholders,” Einhorn said, alluding to its recent buyback. “And so, when you see that kind of opportunity, we took a medium sized position.” Source: https://www.cnbc.com/2023/03/01/greenlight-capitals-einhorn-share-his-favorite-long-positions-in-2023.html

Tenet Healthcare price target raised at Mizuho

Following the Q4 results, Mizuho analyst Ann Hynes maintained a Buy rating on the shares of Tenet Healthcare and increased the price target to $78 from $60 on February 17, 2023. The better than anticipated payer mix in acute care, a quicker recovery in the surgery center business, and contract labor trends all point to potential upside to estimates, according to the analyst. According to the analyst’s research note to investors, improving trends in the surgery center market are essential to enabling multiple expansion for Tenet.

Tenet Reports Fourth Quarter and FY 2022 Results

On February 9, 2023, Tenet Healthcare reported Q4 adjusted EPS of $1.96 versus $2.70 a year ago. The company reported Q4 revenue of $4.99B versus $4.86B a year ago.

“We closed the year with a strong fourth quarter and demonstrated operating discipline in a dynamic environment while providing patient-centered high quality care,” said CEO Saum Sutaria. “Our momentum going into 2023 positions us for continued growth as we remain focused on expanding our industry-leading ambulatory business and investing in technology, innovation, and talent.”

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