Insider Trading March 10, 2026

Surgery Partners CHRO Sells Shares to Cover Tax Bill After Large Restricted Stock Grant

Danielle Burkhalter sold roughly $105,000 in stock while receiving a separate restricted award; company faces mixed analyst reactions amid operational headwinds

By Avery Klein SGRY
Surgery Partners CHRO Sells Shares to Cover Tax Bill After Large Restricted Stock Grant
SGRY

Danielle Burkhalter, Chief Human Resources Officer of Surgery Partners, Inc. (NASDAQ: SGRY), sold 7,736 shares on March 6, 2026, for $13.60 per share, generating $105,209. The sale was disclosed as a tax-related disposition tied to the vesting of restricted stock. One day earlier, Burkhalter received 43,180 restricted shares valued at $609,975 that vest over time. The stock has declined about 44% over the past year and trades near its 52-week low, while analysts have adjusted price targets amid weaker-than-expected results and revised guidance.

Key Points

  • Burkhalter sold 7,736 shares on March 6, 2026, at $13.60 per share to cover tax obligations tied to restricted stock vesting.
  • On March 5, 2026, Burkhalter was granted 43,180 restricted shares at $14.11 per share valued at $609,975; those shares vest over time.
  • Surgery Partners reported adjusted EBITDA-NCI 6% below consensus and several analysts lowered price targets while keeping positive ratings; the company also completed the Preferred Vascular Group acquisition.

Danielle Burkhalter, who serves as Chief Human Resources Officer at Surgery Partners, Inc. (NASDAQ: SGRY), reported a sale of 7,736 shares of common stock on March 6, 2026, at $13.60 per share, for a total of $105,209, according to a Form 4 filed with the Securities and Exchange Commission.

The filing notes the disposition was carried out to satisfy tax obligations arising from the vesting of restricted stock. The sale occurred while Surgery Partners shares were trading at $13.30, roughly 44% below their level a year earlier and trading not far above a 52-week low of $12.25.

Separately, the filing shows Burkhalter received a restricted stock award on March 5, 2026, comprising 43,180 shares of common stock at a reported price of $14.11 per share, with an aggregate value of $609,975. Those restricted shares vest on various future dates, the filing states.

After accounting for the March sale and the restricted awards, Burkhalter is listed as directly owning 80,333 shares of Surgery Partners common stock.

Market commentary included in public materials cites an InvestingPro analysis that the stock appears undervalued relative to its Fair Value and that analysts forecast the company will return to profitability this year. The InvestingPro note was referenced in filings and related disclosures.


Operational and financial context for Surgery Partners was also summarized in recent corporate and analyst communications. The company completed the acquisition of Preferred Vascular Group, a provider focused on dialysis access procedures, in a deal advised exclusively by Ziegler. Management said the acquisition expands Surgery Partners' presence in the ambulatory surgical center arena, especially in Georgia and Ohio.

On the results side, Surgery Partners reported adjusted EBITDA-NCI that came in 6% below consensus estimates. The shortfall was attributed in company commentary and analyst notes to a negative insurance mix shift and to specific underperformance at three of the company's surgical hospitals.

Following those results, several brokerages updated their models and price targets. TD Cowen and RBC Capital cut their targets to $20 while maintaining Buy and Outperform ratings, respectively. Jefferies lowered its target to $16.25 and kept a Buy rating, noting an earnings reset and a leveraged balance sheet. Benchmark reduced its target to $24, citing weak fourth-quarter results and fiscal 2026 guidance that fell short of expectations.

Those analyst moves and the underlying operating commentary were presented alongside the insider transactions in regulatory filings. Together they paint a picture of active corporate development and evolving near-term financial expectations for Surgery Partners.


Summary of the insider activity and recent company developments:

  • CHRO Danielle Burkhalter sold 7,736 shares on March 6, 2026, for $13.60 per share, raising $105,209 to cover taxes related to restricted stock vesting.
  • On March 5, 2026, Burkhalter received 43,180 restricted stock award shares at $14.11 per share valued at $609,975; those shares vest on various future dates.
  • Following the transactions, Burkhalter directly owns 80,333 shares.
  • Surgery Partners reported adjusted EBITDA-NCI that missed consensus by 6%, tied to insurance mix and issues at three surgical hospitals.
  • The company acquired Preferred Vascular Group, expanding its ambulatory surgical center footprint in Georgia and Ohio, with Ziegler serving as exclusive financial advisor.
  • Multiple analysts trimmed price targets to $16.25, $20, and $24 while holding Buy or Outperform recommendations.

Key points

  • Insider transaction was tax-driven - Burkhalter's sale was disclosed as a move to satisfy tax obligations arising from vesting restricted stock, a common reason for contemporaneous selling after awards vest.
  • Material restricted award - The CHRO received a substantial restricted stock award the day before the sale, creating a notable shift in her reported direct holdings once vesting schedules conclude.
  • Analyst reactions and operational headlines - Despite acquisition activity and management commentary, analysts adjusted price targets downward after weaker-than-expected adjusted EBITDA-NCI and conservative guidance.

Risks and uncertainties

  • Earnings and guidance risk - Adjusted EBITDA-NCI missing consensus and fiscal 2026 guidance below expectations indicate uncertainty around near-term profit performance, affecting investors and the healthcare services sector.
  • Operational execution risk - Reported issues at three surgical hospitals and a negative insurance mix shift create uncertainty for operating margins and cash flow in the ambulatory and hospital operations segments.
  • Market valuation and sentiment risk - The stock's 44% decline over the past year and trading near its 52-week low may reflect investor concern and heighten volatility for equity holders in the healthcare services sector.

Risks

  • Adjusted EBITDA-NCI missing consensus and fiscal 2026 guidance below expectations - impacts investor expectations and healthcare services valuations.
  • Operational issues at three surgical hospitals and a negative insurance mix shift - creates execution risk for margins in surgical and hospital operations.
  • Significant share-price decline over the past year and trading near the 52-week low - increases potential volatility and downside risk for shareholders.

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