Tenet Healthcare Has Ripped Thanks To 2 Institutional Moves

The last two trading days saw a 32-percent spike in Tenet Healthcare Corp THC as news suggested a potential turnaround in strategy and performance.

The first report indicated that Glenview Capital Management pulled two representatives off Tenet’s board, which prompted a 14-percent pop Friday. The institutional investor, which nonetheless committed to its 18-percent stake as Tenet’s largest shareholder, cited “irreconcilable differences” as the reason.

Glenview’s renunciation of the two seats terminated a previous agreement between them and Tenet had called for “other ways to be a constructive owner of Tenet,” effectively freeing Tenet to pressure a sale, leadership change or other strategic alternative.

On Monday, Camber Capital Management got in on the action and revealed a new 5.7-percent stake, prompting another 20-percent run.

Investors should be aware that Friday and Monday’s activity merely returned the stock to early-August levels. Prior to the spikes, Tenet had sunk to an eight-year low on earnings misses.

Shares closed at $16.56 Monday, 31 percent above Friday’s open and 14.6 percent up on the day.