Surgery Partners Inc (NASDAQ:) stock has reached a 52-week low, touching down at $22.19. This latest price point underscores a challenging period for the healthcare services company, which has seen its stock price decline by 30.37% over the past year. Investors are closely monitoring the company’s performance, as it navigates through the dynamic healthcare landscape, which has been marked by regulatory changes and competitive pressures. The 52-week low serves as a critical indicator for the market, reflecting investor sentiment and the company’s current valuation in the face of its operational headwinds.
In other recent news, Surgery Partners has reported notable financial outcomes. The healthcare services company’s third-quarter results showed a 14% year-over-year increase in net revenue, reaching $770 million, and a 22% increase in adjusted EBITDA to $128.6 million. Despite challenges such as Hurricane Helene, the company maintained operational continuity, witnessed growth in surgical case volume, and saw a rise in same-facility net revenues.
Analysts have responded to these developments: TD Cowen revised its price target for Surgery Partners to $32, down from $36, while retaining a Buy rating. Jefferies also adjusted its target, reducing it to $40 from $47, but maintained a Buy rating. Barclays (LON:), facing financial challenges throughout the year, reduced its price target from $32 to $31, keeping an Equalweight rating.
The company’s successful recruitment of over 230 new physicians and a 53% increase in total joint replacements were instrumental in these positive results. Surgery Partners anticipates full-year net revenue and adjusted EBITDA to exceed $3.075 billion and $508 million, respectively, surpassing its long-term growth target of 2% to 3% with a 4% same-store case growth year-to-date. These recent developments underscore Surgery Partners’ resilience and adaptability in the face of challenges.
InvestingPro Insights
Surgery Partners Inc’s (SGRY) recent 52-week low of $22.19 aligns with several key insights from InvestingPro. The stock’s recent performance is reflected in InvestingPro data, which shows a 26.98% decline in the past week and a 30.5% drop over the last month. This sharp downturn has pushed the stock into potentially oversold territory, according to an InvestingPro Tip based on the Relative Strength Index (RSI).
Despite the current challenges, InvestingPro Tips suggest that net income is expected to grow this year, and…
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