Pentwater Capital Management 13F: Adds $45M to SGRY Stake

Pentwater Capital Management expanded its investment in Surgery Partners, Inc. (NASDAQ: SGRY), according to a Form 13F filing submitted to the Securities and Exchange Commission on May 15, 2026. The investment firm purchased 2,655,000 additional shares of the surgical facility operator, representing a 26.55% increase in its holding. This transaction brought the fund's total stake to 12,655,000 shares, carrying a market value of $212,603,990.35 at the close of the reporting period.

Pentwater Builds on Its Healthcare Focus

The purchase shows a clear scaling up of Pentwater's commitment to Surgery Partners. Before this transaction, the firm held exactly 10,000,000 shares of the Brentwood, Tennessee-based healthcare provider. Pentwater executed these acquisitions with a reported cost basis of 20.73 per share. This move stands out when compared to the fund's other activities during the same period. For instance, on the same filing date of May 15, 2026, Pentwater took much smaller positions in other sectors, including a new stake in CoreCivic, Inc. of 50,000 shares valued at $1.54 million, and a new position in Medline Inc. of 50,000 shares worth $1.8 million. The massive scale of the Surgery Partners transaction indicates a much higher level of conviction in this medical facility operator.

Surgery Partners Stock Performance and Valuation

On Sunday, Surgery Partners shares were priced at 16.8, showing some recovery from its previous close of 13.25. The stock has experienced wide swings over the past year, trading between a low of 11.41 and a high of 23.44. Currently, the company's 50-day moving average is 14.8032, while its 200-day moving average is 14.62875. With a market capitalization of $1.79 billion, the company has a forward P/E ratio of 48.785713, reflecting high growth expectations from investors. Its beta of 1.92 suggests that the stock is significantly more volatile than the broader market. Financially, the company maintains a current ratio of 1.946 and a quick ratio of 1.44, though its debt-to-equity ratio remains elevated at 117.259.

Recent Earnings and Financial Margins

Surgery Partners reported total revenue of $3,366,299,904.0, representing a modest revenue growth rate of 0.027. However, profitability remains a challenge. The company posted an earnings per share (EPS) of -0.69, which means it does not have a meaningful trailing P/E ratio because it is not currently profitable. Its net margin came in at -0.02632, while its return on equity was recorded at 0.023239998. Investors looking for a turn toward consistent profitability will be watching closely when the company delivers its next quarterly earnings report, scheduled for November 9, 2026.

Analysts Set New Price Targets

Wall Street analysts remain generally optimistic about the surgical facility operator. On September 30, 2026, RBC Capital reiterated its Outperform rating on the stock, maintaining its price target of 19.0. Just a couple of weeks earlier, on September 18, 2026, TD Cowen reiterated its Buy rating with a 19.0 price target. JP Morgan maintained a Neutral rating on September 14, 2026, though it did bump its price target up to 15.0 from an earlier 14.0. In August, several other adjustments occurred: TD Cowen raised its target to 19.0 from 17.0 on August 11, 2026, while RBC Capital adjusted its target down to 19.0 from 20.0 on the same day. Cantor Fitzgerald also reiterated its Overweight rating with an 18.0 target on August 11, 2026. Across 11 analyst opinions, the stock has a consensus buy rating, with a mean price target of 18.81818.

Operating Surgical Networks

Surgery Partners, Inc. runs a network of surgical facilities and related services across the United States. The company focuses on ambulatory surgery centers and specialized surgical hospitals. These sites provide non-emergency procedures in areas like orthopedics, pain management, ophthalmology, and general surgery. Pentwater's decision to increase its position heavily suggests it sees long-term value in the steady demand for outpatient surgical care.

Monitoring the Healthcare Play

Market observers will want to watch how Surgery Partners performs in its upcoming earnings release on November 9, 2026. That report should show whether the company is making progress on its margins and managing its debt. It is important to keep in mind that Form 13F filings are backward-looking and only show what a fund owned on May 15, 2026. Pentwater may have adjusted its position in the months since.