SGRY Should I Buy
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Surgery Partners Inc (SGRY) is not a strong buy at the moment for a beginner investor with a long-term focus. The company's financial performance has been weak, with declining net income, EPS, and gross margin. Analysts have lowered price targets, citing disappointing results and challenges in the business. While hedge funds are buying, insider selling and technical indicators suggest caution. The options data indicates a lack of strong bullish sentiment. Given the investor's scenario, it is better to hold off on this stock for now.
The MACD is positive at 0.294, indicating some bullish momentum, but RSI at 87.54 signals the stock is overbought. Moving averages are converging, suggesting indecision in the market. Key resistance levels are at R1: 14.742 and R2: 15.301, while support levels are at S1: 12.931 and S2: 12.372.
Hedge funds are significantly increasing their positions, with a 682.35% increase in buying over the last quarter.
Insiders are selling heavily, with a 258.25% increase in selling over the last month. Analysts have consistently lowered price targets due to disappointing financial results and operational challenges. Technical indicators show the stock is overbought, and options data does not indicate strong bullish sentiment.
In Q4 2025, revenue grew modestly by 2.38% YoY to $885 million. However, net income dropped sharply by -86.18% YoY to -$15 million, EPS fell by -86.05% YoY to -0.12, and gross margin declined by -25.50% YoY to 17.21.
Analysts have lowered price targets significantly, with the most recent target from Jefferies at $15. Concerns include Q1 volume impacts from weather events, anesthesia-related cost pressures, a deteriorating payer mix, and disappointing Q4 results. Most analysts maintain a Buy or Outperform rating but with reduced expectations.
