Tenet Healthcare Surges 2.2% on Earnings Outperformance and Analyst Optimism Amid 400th-Ranked $260M Volume and Prudential's 89.6% Stake Cut

On August 20, 2025, Tenet Healthcare Corporation (THC) closed with a 2.20% gain, outperforming broader market trends. The stock traded at $0.26 billion in volume, ranking 400th in daily trading activity. Recent developments highlight mixed institutional investor sentiment and analyst optimism. Institutional ownership saw a significant reduction as Prudential PLC slashed its stake by 89.6%, retaining only 1,591 shares valued at $214,000. This move contrasts with recent upgrades from analysts, including JPMorgan Chase and Raymond James, who raised price targets to $200 per share, reflecting confidence in the company’s earnings potential. Tenet’s quarterly earnings report exceeded expectations, with $4.02 per share compared to a $2.84 consensus, alongside a 3.2% year-over-year revenue increase to $5.27 billion.

The Zacks Rank model elevated Tenet to a #1 (Strong Buy) rating on July 25, 2025, driven by upward revisions in earnings estimates and a 31.2% average earnings surprise. Analysts anticipate 30.8% EPS growth for the current fiscal year, outpacing industry averages. However, insider sales have introduced short-term uncertainty. Director James Bierman and EVP Paola Arbour reduced their holdings by 25.03% and 27.79%, respectively, in May and June 2025, totaling $7.07 million in proceeds. Despite this, institutional investors like Loring Wolcott & Coolidge Fiduciary Advisors and Wayfinding Financial LLC added new positions, signaling cautious optimism about long-term value.

A backtest of a strategy purchasing the top 500 stocks by daily trading volume and holding them for one day from 2022 to 2025 yielded a 31.52% total return over 365 days. The average 1-day return was 0.98%, with peak performance of 7.02% in June 2023 and a low of -4.20% in September 2022. This suggests the strategy captured short-term momentum but remained exposed to market volatility, aligning with Tenet’s recent 14.1% rise over four weeks amid positive earnings revisions and institutional buying pressure.