Irenic Capital Management Cuts Stake in Surgery Partners by Over 1 Million Shares
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Feb 23 2026
0mins
Should l Buy SGRY?
Source: Fool
- Stake Reduction: Irenic Capital Management sold 1,047,583 shares of Surgery Partners in Q4 2025, valued at approximately $19.25 million, indicating a loss of confidence as the remaining stake now represents only 0.09% of its $1.49 billion assets under management.
- Financial Performance: Despite the sell-off, Surgery Partners reported a 6.6% increase in Q3 revenue to $821.5 million, with Adjusted EBITDA rising 6.1% to $136.4 million, suggesting that operationally the company remains stable and resilient.
- Market Performance Analysis: As of February 17, 2026, Surgery Partners' stock price stood at $15.60, reflecting a 39.7% decline over the past year, significantly underperforming the S&P 500 by 51.61 percentage points, which raises concerns about its growth prospects.
- Debt Risk Consideration: The company's net debt to EBITDA ratio is approximately 4.2x, and in the context of a high interest rate environment, this leverage could amplify risks for investors, thereby affecting market confidence in its stock.
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Analyst Views on SGRY
Wall Street analysts forecast SGRY stock price to rise
11 Analyst Rating
8 Buy
3 Hold
0 Sell
Moderate Buy
Current: 15.880
Low
18.00
Averages
26.30
High
36.00
Current: 15.880
Low
18.00
Averages
26.30
High
36.00
About SGRY
Surgery Partners, Inc. is a healthcare services company. The Company, through its subsidiaries, owns and operates a national network of surgical facilities and ancillary services. The Company operates through the Surgical Facility Services segment, which includes the operation of ambulatory surgery centers (ASCs), surgical hospitals, anesthesia services, urgent care facilities and multi-specialty physician practices. Its surgical facilities primarily provide non-emergency surgical procedures across many specialties, including, among others, orthopedics and pain management, ophthalmology, gastroenterology (GI) and general surgery. The Company operates a portfolio of 162 surgical facilities comprised of 143 ASCs and 19 surgical hospitals. The Company is focused on surgical services businesses in the United States, with over 250 locations in 30 states, including short-stay surgical hospitals.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- Weak Revenue Growth: Surgery Partners reported full-year net revenue of $3.3 billion, a 6.2% year-over-year increase, but at the low end of expectations, with same-facility revenue growth of only 4.9% in Q4, indicating potential market demand weakness that could affect investor confidence.
- Declining Adjusted EBITDA: The adjusted EBITDA for 2025 was $526 million, up 3.5% year-over-year, but Q4 EBITDA was only $156.9 million, with a margin compressed to 15.9%, reflecting challenges in cost control and profitability.
- Slowdown in Surgical Cases: The company performed nearly 670,000 surgical cases in 2025, with same-facility case growth of just 1.3% in Q4; despite strong growth in orthopedic surgeries, the overall slowdown may impact market share and competitiveness.
- Cautious Future Outlook: Management projects 2026 net revenue between $3.35 billion and $3.45 billion, with adjusted EBITDA of at least $530 million, reflecting a cautious stance towards market challenges while emphasizing ongoing portfolio optimization to enhance long-term shareholder value.
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Analysis of Surgery Partners Options Trading
- Options Selling Risks: Selling puts on Surgery Partners does not provide the same upside potential as owning shares, as the seller only acquires shares if the contract is exercised, and if the stock does not fall to $7.50, the only benefit is a 48.7% annualized return from the premium.
- Cost Basis Analysis: If Surgery Partners' shares decline by 41.4% and the contract is exercised, the seller's cost basis would be $7.05 per share after commissions, indicating that actual returns are influenced by market prices, highlighting the complexity of options trading.
- Historical Volatility Reference: With a trailing twelve-month volatility of 52% calculated from the last 251 trading days, this metric provides crucial insight for investors assessing the risk-reward profile of selling puts at the $7.50 strike price.
- Market Sentiment Indicator: During mid-afternoon trading on Tuesday, the put volume among S&P 500 components reached 1.01 million contracts, matching call volume, indicating a higher demand for puts than the long-term median ratio of 0.65, reflecting investor concerns about downside risks in the market.
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- Market Decline: The S&P 500 index fell by 0.94%, reaching a 3.25-month low, reflecting investor concerns over escalating tensions in Iran, which may impact future investment decisions and market stability.
- Surge in Oil Prices: WTI crude oil prices rose over 4% to an 8.5-month high due to threats from Iran to close the Strait of Hormuz, intensifying fears of energy supply disruptions and potential inflationary pressures in the economy.
- Natural Gas Price Spike: European natural gas prices surged more than 22% to a three-year high after Qatar's Ras Laffan plant was targeted by an Iranian drone attack, posing significant risks to global liquefied natural gas supply and market stability.
- Economic Data Expectations: This week, the ADP employment change is expected to increase by 50,000, while the ISM services index is projected to slip slightly, with markets closely monitoring these indicators to assess economic health and potential implications for Federal Reserve monetary policy decisions.
See More
Global Stock Markets Plunge as Oil Prices Surge Amid Iran Conflict
- Stock Market Decline: The S&P 500 index fell by 2.18%, reaching a 3.25-month low, indicating market concerns over the Iran conflict that may lead to decreased investor confidence and increased volatility.
- Surge in Oil Prices: WTI crude oil prices rose over 8% to an 8.5-month high due to Iran's threats to close the Strait of Hormuz, potentially causing long-term disruptions in global energy markets and raising inflation expectations.
- Rising Bond Yields: The 10-year German bund yield climbed to a 2.5-week high of 2.814%, reflecting market worries about future inflation, which may prompt investors to shift towards bonds for safety.
- Economic Data Focus: This week, the market will focus on U.S. employment data and economic indicators, with the ADP employment change expected to rise by 40,000 and the ISM services index anticipated to slip slightly, indicating potential economic slowdown.
See More
Surgery Partners Q4 2025 Earnings Call Insights
- Weak Revenue Growth: Surgery Partners reported full-year net revenue of $3.3 billion, a 6.2% year-over-year increase, but at the low end of expectations, with same-facility revenue growth of only 4.9% in Q4, indicating potential market demand weakness that could affect investor confidence.
- Declining Adjusted EBITDA: The adjusted EBITDA for 2025 was $526 million, up 3.5% year-over-year, but Q4 EBITDA was only $156.9 million, with a margin compressed to 15.9%, reflecting challenges in cost control and profitability.
- Slowdown in Surgical Cases: The company performed nearly 670,000 surgical cases in 2025, with same-facility case growth of just 1.3% in Q4; despite strong growth in orthopedic surgeries, the overall slowdown may impact market share and competitiveness.
- Cautious Future Outlook: Management projects 2026 net revenue between $3.35 billion and $3.45 billion, with adjusted EBITDA of at least $530 million, reflecting a cautious stance towards market challenges while emphasizing ongoing portfolio optimization to enhance long-term shareholder value.
See More
Analysis of Stock Movements for Multiple Companies
- AeroVironment Contract Talks: AeroVironment's stock surged 9% as it continues negotiations with the U.S. Space Force for the SCAR program contract, which had previously been paused for term revisions, indicating the company's growth potential in space and directed energy platforms.
- Pinterest Investment Dynamics: Elliott Management's $1 billion investment in Pinterest aims to accelerate the company's stock buyback program, resulting in a more than 7% increase in Pinterest's stock, reflecting market optimism about its future growth prospects.
- Ziff Davis Transaction Impact: Ziff Davis shares rose 74%, hitting a 52-week high after agreeing to sell its connectivity division to Accenture for $1.2 billion, with the CEO describing the deal as a significant realization of shareholder value, signaling a successful strategic transformation for the company.
- AutoZone Earnings Disappointment: AutoZone's stock fell over 5% following disappointing fiscal second-quarter results, primarily attributed to winter storms and price pressures from tariffs, highlighting the company's vulnerability in adverse conditions.
See More
Global Stock Markets Plunge as Oil Prices Surge Amid Iran Conflict
- Market Decline: The S&P 500 index fell by 1.82%, the Dow Jones Industrial Average dropped by 2.07%, and the Nasdaq 100 decreased by 1.78%, marking a 2.5-month low for the S&P 500, indicating growing concerns about the global economic outlook.
- Surging Oil Prices: WTI crude oil prices surged over 7% to an 8.5-month high due to escalating conflict in Iran, raising fears of energy supply disruptions and increasing inflation expectations, which negatively impact stock market performance.
- Rising Bond Yields: The 10-year German bund yield reached a 2.5-week high of 2.814%, while the 10-year UK gilt yield climbed to a 3-week high of 4.536%, reflecting market concerns over future inflation, further pressuring stock prices.
- Earnings Outlook: Despite market volatility, 73% of S&P 500 companies exceeded earnings expectations, with Q4 earnings growth projected at 8.4%, indicating strong corporate fundamentals, yet market sentiment remains subdued.
See More
Analysis of Surgery Partners Options Trading
- Options Selling Risks: Selling puts on Surgery Partners does not provide the same upside potential as owning shares, as the seller only acquires shares if the contract is exercised, and if the stock does not fall to $7.50, the only benefit is a 48.7% annualized return from the premium.
- Cost Basis Analysis: If Surgery Partners' shares decline by 41.4% and the contract is exercised, the seller's cost basis would be $7.05 per share after commissions, indicating that actual returns are influenced by market prices, highlighting the complexity of options trading.
- Historical Volatility Reference: With a trailing twelve-month volatility of 52% calculated from the last 251 trading days, this metric provides crucial insight for investors assessing the risk-reward profile of selling puts at the $7.50 strike price.
- Market Sentiment Indicator: During mid-afternoon trading on Tuesday, the put volume among S&P 500 components reached 1.01 million contracts, matching call volume, indicating a higher demand for puts than the long-term median ratio of 0.65, reflecting investor concerns about downside risks in the market.
See More
