SGRY Should I Buy
-
$
0.000
0.000(0.000%)
At close0.000(0.000%)Aft-market
ET
Surgery Partners Inc (SGRY) is not a strong buy for a beginner investor with a long-term strategy at this time. The company is facing significant financial and operational challenges, as reflected in its recent earnings miss, declining margins, and negative analyst sentiment. Additionally, technical indicators and options data do not suggest a strong upward momentum in the near term. While hedge funds are buying, insider selling and lack of recent positive news further weigh against a buy recommendation.
The technical indicators for SGRY are bearish. The MACD is negative and contracting, the RSI is neutral at 27.345, and the moving averages indicate a bearish trend (SMA_200 > SMA_20 > SMA_5). The stock is trading below key support levels, with a pivot at 12.22 and current pre-market price at 12. Resistance levels are at 12.713 and 13.018, while support levels are at 11.728 and 11.423.
Hedge funds are significantly increasing their buying activity, with a 682.35% increase in the last quarter. M&A activity could provide upside potential in the future, as noted by analysts.
Insiders are selling heavily, with a 258.25% increase in selling activity over the last month. The company reported disappointing Q4 results, with EBITDA missing consensus expectations due to cost pressures and a deteriorating payer mix. Analyst sentiment is overwhelmingly negative, with multiple firms lowering price targets and expressing concerns about operational challenges.
In Q4 2025, the company reported a revenue increase of 2.38% YoY to $885 million. However, net income dropped significantly by -86.18% YoY to -$15 million, and EPS fell by -86.05% YoY to -0.12. Gross margin also declined by -25.50% YoY to 17.21%. These results indicate significant profitability and operational challenges.
Analysts have lowered their price targets significantly, with targets ranging from $14 to $24. Despite maintaining Buy or Outperform ratings, analysts cite concerns about cost pressures, payer mix deterioration, and disappointing guidance. The sentiment is cautious, with expectations of improvement only in the long term.
