Surgery Partners, Inc. (NASDAQ: SGRY) Maintains "Buy" Rating Amid Investigation

Core Viewpoint - Surgery Partners, Inc. (NASDAQ: SGRY) is facing an ongoing investigation regarding potential claims on behalf of its investors, despite maintaining a "Buy" rating from Jefferies. The company reported strong revenue figures but experienced a decline in profitability, leading to a drop in stock price [2][3][6]. Financial Performance - SGRY reported a full-year 2025 revenue of approximately $3.3 billion and an Adjusted EBITDA of $526.2 million, exceeding revenue expectations but falling short on profitability [3][6]. - Following the Q4 2025 results, SGRY's stock price declined by 14.1%, prompting investor concerns and the initiation of an investigation [3][6]. Market Position - The company has been expanding its surgical facilities, which has resulted in increased revenue per case. However, asset sales have led to a decrease in total case volume, impacting short-term results [4]. - Despite mixed profitability, SGRY trades at attractive EV/EBITDA and operating cash flow multiples compared to its peers, supporting Jefferies' soft "buy" upgrade [4][6]. Stock Performance - Currently, SGRY's stock is priced at $14.28, reflecting a 2.59% increase or $0.36, with a market capitalization of approximately $1.85 billion [5]. - Over the past year, SGRY's stock has seen a high of $24.64 and a low of $12.25, with a trading volume of around 1.74 million shares [5].