Surgery Partners operates ambulatory surgery centers with 52% revenue concentration from private insurance payors and a quality score below minimum thresholds, making it a structurally risky holding despite positive short-term momentum and an attractive forward valuation.
Thesis pillars
- Private Insurance Concentration Payor Risk→Stable
- Quality Below Minimum Threshold→Stable
- High Short Interest Elevated Put Call→Stable
- +1 more pillar — see the Why tab for full reasoning
Surgery Partners, Inc. (SGRY) Stock Analysis
Inst Constrain edge
Healthcare · Medical Care Facilities
Sell if holding. Engine safety override at $15.24: Quality below floor (3.1 < 4.0) triggers a hard block regardless of the otherwise-positive setup — overall score 5.5/10. Specifically: High short interest: 23%; Below-average business quality; Negative price momentum.
Surgery Partners owns and operates 176 surgical facilities — 157 ambulatory surgery centers and 19 licensed surgical hospitals — across 30 U.S. states, generating approximately $3.2 billion in revenue in 2025. Facility fees from surgical procedures fund nearly all patient... Read more
Sell if holding. Engine safety override at $15.24: Quality below floor (3.1 < 4.0) triggers a hard block regardless of the otherwise-positive setup — overall score 5.5/10. Specifically: High short interest: 23%; Below-average business quality; Negative price momentum. Chart setup: No clear chart pattern; technical signals are mixed. Score 5.5/10, moderate confidence.
Passes 5/9 gates (clean insider activity, no SEC red flags, news events none recent, semi cycle peak clear, materials cycle peak clear). Fails on weak momentum and favorable risk/reward ratio and death cross (50MA < 200MA). Suitability: aggressive.
Recent developments
updated 2026-07-24Recent Developments — Surgery Partners, Inc.
Latest news
- NEWS Surgery Partners Monetizes Idaho Assets As It Chases Faster Growth — benzinga Jul 24, 2026 positive
- NEWS Surgery Partners Affirms FY2026 Sales Guidance of $3.350B-$3.450B vs $3.408B Est — benzinga Jul 24, 2026 neutral
- NEWS Surgery Partners To Sell Ownership Interests In Mountain View Hospital And Idaho Falls Community Hospital To Intermounta — benzinga Jul 24, 2026 neutral
- NEWS Surgery Partners Q1 2026 Earnings Call Transcript — benzinga May 5, 2026 neutral
- NEWS Surgery Partners Affirms FY2026 Sales Guidance of $3.350B-$3.450B vs $3.411B Est — benzinga May 5, 2026 positive
Generated 2026-07-25T17:22:06Z.
Upcoming dated catalysts
Thesis
Key Metrics
Quality Signals
Options Flow
Concentration Risks(10-K Item 1A)
- MEDIUMCustomergovernment payors43%10-K Item 1A: 'We derived approximately 43%, 41% and 42% of our revenue from government payors, including Medicare and Medicaid programs in 2025, 2024 and 2023, respectively.'
- HIGHCustomerprivate insurance payors52%10-K Item 1A: 'Payments from private insurance payors...represented approximately 52%...of our patient service revenue in 2025'
Model-generated analysis — not investment advice. Not a registered investment advisor. Past performance does not guarantee future results.
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Rating Breakdown
3 floor-breakers
Volatile — 5.3% daily ATR makes tight stops impractical. Position-size conservatively.static
Unprofitable operations — net margin -2.3%. Quality floor flags this regardless of sector context.static
Price action weak — below key moving averages, no momentum carry. Needs a base before trend-continuation setups apply.static
Price Targets
Position Sizing
Risk Alerts
Earnings
Verdict History
Frequently Asked Questions
Sell if holding. Engine safety override at $15.24: Quality below floor (3.1 < 4.0) triggers a hard block regardless of the otherwise-positive setup — overall score 5.5/10. Specifically: High short interest: 23%; Below-average business quality; Negative price momentum. Chart setup: No clear chart pattern; technical signals are mixed. Prior stop was $14.25. Score 5.5/10, moderate confidence.
Take-profit target: $16.02 (+5.2% upside). Prior stop was $14.25. Stop-loss: $14.25.
Concentration risk — Customer: private insurance payors (52.0%); Quality below floor (3.1 < 4.0); Value-trap signals (2/5): High leverage (D/E 3.6), Material insider selling (3 sells, 15.67% of cap).
Surgery Partners, Inc. trades at a P/E of N/A (forward 23.2). TrendMatrix value score: 7.3/10. Verdict: Sell.
18 analysts cover SGRY with a consensus score of 4.1/5. Average price target: $18.
What does Surgery Partners, Inc. do?Surgery Partners owns and operates 176 surgical facilities — 157 ambulatory surgery centers and 19 licensed surgical...
Surgery Partners owns and operates 176 surgical facilities — 157 ambulatory surgery centers and 19 licensed surgical hospitals — across 30 U.S. states, generating approximately $3.2 billion in revenue in 2025. Facility fees from surgical procedures fund nearly all patient service revenue, split 52.3% from private insurance and 42.8% from government payors (Medicare/Medicaid).