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Larry Robbins Ups Holdings in Health Care Company

December 24, 2013 | About:
Monica Wolfe

Monica Wolfe

133 followers

Yesterday GuruFocus Real Time Picks reported two guru buys coming from Larry Robbins into the company Tenet Healthcare (THC). The guru made these two buys on two different days over the past week.

On Dec. 18 Robbins upped his stake in Tenet by 10.25%. The guru added 1 million shares to his holdings at an average price of $40.92 per share. Since his buy, the price per share is trading at about -3% lower at $39.81 per share.

Even more recently, on Dec. 20 Robbins added an additional 5.99% to his holdings. The guru purchased 644,582 shares at $40.31 per share. This cost the guru approximately $25,983,100, and since his buy the price per share is now down about -1%.

The guru now holds on to 11,403,921 shares of the company’s stock, representing 11.22% of the company’s shares outstanding.

Robbins’ historical holding history of Tenet Healthcare:

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After decreasing his holdings multiple times over the past year, the guru has already increased his position three times since the close of the third quarter. As of the most recent quarter Tenet Healthcare was Robbins’ seventh largest holding with a 3.5% portfolio weighting.

Tenet Healthcare is a health care services company that operates acute care hospitals, ambulatory surgery centers, diagnostic imaging centers and related health care facilities. Its core business is focused on providing acute care treatment, including inpatient care, intensive care, cardiac care, radiology services and emergency medical treatment.

Tenet Healthcare’s historical revenue and net income:

1387902068583.png

The analysis on Tenet Healthcare reports that over the past three years the company has issued $1 billion of debt, its asset growth is currently faster than its revenue growth, but on the other hand, the company’s operating margin has shown consistent signs of expansion.

The top guru shareholders of THC:

  1. Larry Robbins: 11,403,921 shares, representing 11.22% of the company’s shares outstanding.
  2. John Griffin: 3,085,000 shares, representing 3.04% of the company’s shares outstanding.
  3. Vanguard Health Care: 1,400,000 shares, representing 1.38% of the company’s shares outstanding.

The company most recently presented at the Bank of America Merrill Lynch Leveraged Finance Conference on Dec. 3. You can listen to a recording of that presentation here.

Prior to that the company released its third quarter results which highlighted:

  • Adjusted EBITDA of $288 million, representing a 7.1% increase.
  • Net operating revenues of $2.408 billion, representing an 8.4% increase.
  • The company’s California Provider Fee Program was extended through 2016 in an enhanced 36-month program.
  • Total net patient revenue per adjusted admission was $11,928, representing a 3% increase.

​Tenet Healthcare Corporation has a market cap of $3.95 billion. Its shares are currently trading at around $39.84 with a P/S ratio of 0.40 and a P/B ratio of 4.70. The company had an annual average earnings growth of 7.50% over the past five years.

You can check out Larry Robbins’s real time picks along with his third quarter portfolio here.

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