SGRY

Analyst Ratings: Ben Hendrix from RBC Capital maintains a Buy rating on Surgery Partners (SGRY) with a price target of $35.00, while the analyst consensus is a Strong Buy with an average price target of $32.67, indicating a potential upside.

Insider Activity: Recent insider sentiment is negative as there has been an increase in insiders selling shares, including a notable sale by CHRO Danielle Burkhalter, despite the company's strong financial performance and strategic positioning.

Aardvark Therapeutics, Inc. Update: Analysts have given Aardvark Therapeutics a Strong Buy rating, with price targets of $29.00 from Morgan Stanley and $22.00 from Bank of America, indicating significant upside potential from its current share price.

Surgery Partners Performance: Surgery Partners also received a Strong Buy consensus, with RBC Capital maintaining a Buy rating and a price target of $35.00, reflecting a 36.5% upside from its recent closing price.

Analyst Ratings: Ben Hendrix from RBC Capital maintains a Buy rating on Surgery Partners (SGRY) with a price target of $35.00, while TD Cowen also issued a Buy rating, contrasting with KeyBanc's Hold rating.

Financial Performance and Insider Activity: Surgery Partners reported a revenue increase to $864.4 million but faced a GAAP net loss of $108.5 million; insider sentiment is negative, with increased selling activity among insiders, including the CEO.

Financial Performance: Surgery Partners, Inc. reported a 17.5% revenue increase in Q4 2024 and a 13.5% increase for the full year, despite a net loss of $108.5 million in Q4 and $168.1 million for the year; Adjusted EBITDA rose by 15.1% to $163.8 million for Q4 and 16.0% to $508.2 million for the full year.

2025 Outlook: The company anticipates 2025 revenues between $3.30 billion and $3.45 billion, with Adjusted EBITDA projected to range from $555 million to $565 million, supported by a strong liquidity position of over $770 million.

2025 Financial Projections: Full year 2025 revenue is anticipated to be between $3.30 billion and $3.45 billion, with Adjusted EBITDA expected to range from $555 million to $565 million.

Surgery Partners Updates: Surgery Partners reported a Q4 adjusted EPS of 44 cents, exceeding the consensus of 38 cents, and confirmed a buyout proposal from Bain Capital at $25.75 per share, while BofA has moved to No Rating on the company.

Earnings Reports Overview: Several companies, including TG Therapeutics, California Resources Corporation, and Burford Capital, are set to report their earnings for the quarter ending December 31, 2024, with varying forecasts indicating potential growth or declines compared to the previous year.

Industry Comparisons: The Price to Earnings ratios for these companies suggest that many are expected to outperform their industry competitors in terms of earnings growth, despite some companies like Surgery Partners and N-able experiencing anticipated decreases in earnings per share.

U.S. Stock Futures: U.S. stock futures rose this morning, with Dow futures up approximately 100 points, despite several companies reporting disappointing quarterly financial results leading to significant pre-market declines in their stock prices.

Flywire Corporation and Other Stocks: Flywire Corporation's shares fell 29.2% after reporting losses and sales that missed analyst expectations, while other companies like Liberty Global Ltd., Accel Entertainment, and Grocery Outlet also experienced substantial drops in pre-market trading due to poor earnings reports.

U.S. Stock Futures Decline: U.S. stock futures are lower, with Nasdaq futures dropping about 100 points, as several companies, including Harmonic Inc., reported disappointing earnings and revenue guidance, leading to significant pre-market declines in their stock prices.

Notable Stock Movements: Harmonic Inc. shares fell 25.6% after issuing weak forecasts, while Fluence Energy, Surgery Partners, Amkor Technology, and others also experienced substantial drops in pre-market trading due to poor financial results or lowered guidance.

Lattice Semiconductor Performance: Lattice Semiconductor's shares rose 14.7% in pre-market trading after reporting fourth-quarter earnings of 15 cents per share, which missed estimates, but revenue of $117.41 million exceeded expectations.

Market Movements: Several stocks saw significant pre-market movements, with Ocean Biomedical gaining 86%, while Fluence Energy fell 35% following disappointing financial results.

Key Acquisitions and Investments: Molson Coors is acquiring an 8.5% stake in Fevertree Drinks, while Emerson Electric is buying Aspen Technology for $7.2 billion. Additionally, American Axle & Manufacturing announced a merger with Dowlais Group valued at $1.44 billion.

Market Movements and Offers: Surgery Partners saw a 19% increase after receiving a non-binding offer from Bain Capital, and Sage Therapeutics rejected a takeover bid from Biogen, leading to a 5.6% rise in its shares.

Analyst Ratings: Whit Mayo of Leerink Partners maintains a Buy rating on Surgery Partners (SGRY) with a price target of $36.00, citing Bain Capital's non-binding cash proposal to acquire shares at $25.75 as a sign of the company's potential value and growth prospects.

Company Overview: Surgery Partners is a healthcare services holding company that provides surgical and ancillary care solutions through various segments, including Surgical Facility Services, Ancillary Services, and Optical Services, and has shown solid performance despite market challenges.

Eli Lilly Options Trading: Eli Lilly (LLY) experienced significant options trading with 19,946 contracts, particularly for the $830 strike call option expiring January 31, 2025, indicating strong investor interest.

Surgery Partners Options Activity: Surgery Partners Inc (SGRY) also saw notable options activity with 5,108 contracts traded, especially for the $30 strike call option expiring September 19, 2025, reflecting a substantial portion of its average daily trading volume.

U.S. Stock Market Performance: U.S. stocks showed mixed results with the Dow Jones index declining by 0.1%, while Royal Caribbean Cruises saw a significant increase of 6.2% after reporting strong fourth-quarter earnings, including an adjusted EPS that surpassed estimates.

Notable Stock Gains: Several companies experienced substantial stock gains, including Brighthouse Financial (20.3%), BlackSky Technology (18.8%), and Surgery Partners (17.2%), driven by various positive developments such as sales growth, contract awards, and analyst upgrades.

Put Contract Strategy: Investors can sell a put contract at a $20.00 strike price, collecting a premium that lowers their effective purchase price to $18.05, with a 63% chance of the contract expiring worthless, yielding a potential 9.75% return on cash commitment.

Call Contract Opportunity: By purchasing shares at $20.18 and selling a covered call at a $22.50 strike price, investors could achieve a total return of 24.88% if the stock is called away, with a 44% chance of the call expiring worthless, resulting in a 13.38% additional return.

Appointment of Dr. Laura L. Forese: Surgery Partners, Inc. has appointed Dr. Laura L. Forese as an independent director on its Board of Directors, effective January 10, 2025, increasing the board size to eleven members. Dr. Forese brings over 40 years of healthcare administration experience, including her role as executive vice president and COO at New York-Presbyterian.

Dr. Forese's Vision for Surgery Partners: Dr. Forese expressed enthusiasm about joining Surgery Partners, highlighting the company's potential to enhance surgical care quality and efficiency while providing cost savings for patients and payors, aligning with her interests in healthcare improvement.

Surgery Partners Inc Performance: Surgery Partners Inc (SGRY) shares have entered oversold territory with an RSI of 27.3, indicating potential exhaustion of recent selling pressure as the stock trades around $21.10 per share.

52-Week Range Insight: The 52-week low for SGRY is $21.10 and the high is $36.915, suggesting that current trading levels may present a buying opportunity for investors.

Market Performance: Communications services shares are down approximately 1.4%, with Inseego and Maplebear leading the decline at 40.3% and 12.5%, respectively.

Author's Perspective: The opinions expressed in the article reflect the author's views and may not represent those of Nasdaq, Inc.

Earnings Report: Surgery Partners reported a Q3 Non-GAAP EPS of $0.19, missing expectations by $0.07, while revenue increased by 14.3% year-over-year to $770.4 million, aligning with forecasts. Adjusted EBITDA grew by 21.9% to $128.6 million, with a margin expansion of 100 basis points.

Market Activity: The company is experiencing positive market sentiment, with UBS initiating a buy rating due to growth potential and reports of interest from UnitedHealth and TPG contributing to a rise in stock value.

Earnings Reports Overview: Several companies, including Astrazeneca PLC and Roivant Sciences Ltd., are set to report their earnings for the quarter ending September 30, 2024, with varying forecasts and previous year comparisons indicating increases or decreases in earnings per share.

Market Insights: The "days to cover" metric is highlighted for certain stocks, indicating significant short interest, while some companies like Legend Biotech Corporation show substantial percentage increases in earnings compared to the same quarter last year.

Earnings Performance: Alignment Healthcare reported a quarterly loss of $0.14 per share, matching expectations and showing improvement from a loss of $0.19 per share a year ago, while revenues increased to $692.43 million, exceeding estimates by 4.50%.

Future Outlook: The stock's performance is currently rated as a Zacks Rank #3 (Hold), indicating it is expected to perform in line with the market, with mixed earnings estimate revisions for upcoming quarters and a challenging industry outlook.