WellCare Health Plans (WCG) Receives Buy Rating from Cantor Fitzgerald
WellCare Health Plans (NYSE:WCG)‘s stock had its “buy” rating restated by Cantor Fitzgerald in a research note issued to investors on Tuesday. They currently have a $235.00 price target on the stock. Cantor Fitzgerald’s price target would indicate a potential upside of 20.49% from the stock’s previous close.
The analysts wrote, “4Q17 results were solid. Revenue of $4.3 billion was in line with FactSet consensus and our estimate. Favorable prior-year development was $19.6 million. The results included $45.6 million, or $0.64 per share, premium deficiency reserve associated with the company’s new Illinois Medicaid contract. The Illinois PDR was partially offset by continued organic growth and the company’s acquisitions of Universal American, Care 1st Arizona and assets of Phoenix Health Plan. MLR of 88.5% increased 100bps y/y, reflecting the HIF suspension, the effect of Illinois PDR and the acquisition of Universal American. Adjusted EPS of $0.32 were well above consensus of $0.19 and our $0.14 estimate. Due to its focus on profitability, WCG’s net margin improved to 2.25% from 1.9% in 2016. Total membership stood at approximately 4.37 million members. Medicaid membership increased to over 2.7 million people, representing growth of 7% y/y. Medicare organic membership growth was 9% y/y. Management expects mid-single-digit growth in Medicare in 2018.””
A number of other equities analysts have also weighed in on WCG. Cowen began coverage on shares of WellCare Health Plans in a research report on Monday, October 9th. They issued an “outperform” rating and a $200.00 price objective for the company. Piper Jaffray Companies reissued a “buy” rating and issued a $214.00 price objective on shares of WellCare Health Plans in a research report on Wednesday, November 1st. Jefferies Group boosted their price objective on shares of WellCare Health Plans from $190.00 to $210.00 and gave the company a “hold” rating in a research report on Wednesday, November 1st. Wells Fargo & Co reissued a “market perform” rating and issued a $188.00 price objective (up previously from $175.00) on shares of WellCare Health Plans in a research report on Wednesday, November 1st. Finally, Bank of America boosted their price objective on shares of WellCare Health Plans from $210.00 to $215.00 and gave the company a “neutral” rating in a research report on Friday, November 17th. Nine equities research analysts have rated the stock with a hold rating and nine have issued a buy rating to the stock. The stock currently has a consensus rating of “Buy” and an average target price of $213.93.
WellCare Health Plans (NYSE:WCG) last posted its quarterly earnings data on Tuesday, February 6th. The company reported $0.32 earnings per share for the quarter, beating analysts’ consensus estimates of $0.21 by $0.11. The business had revenue of $4.35 billion during the quarter, compared to analyst estimates of $4.32 billion. WellCare Health Plans had a net margin of 2.21% and a return on equity of 19.42%. The company’s revenue was up 23.5% on a year-over-year basis. During the same quarter in the previous year, the business posted $1.03 earnings per share. analysts forecast that WellCare Health Plans will post 8.41 EPS for the current year.
A number of hedge funds have recently modified their holdings of the stock. Swiss National Bank increased its position in WellCare Health Plans by 2.3% during the fourth quarter. Swiss National Bank now owns 75,800 shares of the company’s stock worth $15,244,000 after purchasing an additional 1,700 shares during the last quarter. California Public Employees Retirement System increased its position in WellCare Health Plans by 1.3% during the fourth quarter. California Public Employees Retirement System now owns 142,055 shares of the company’s stock worth $28,569,000 after purchasing an additional 1,891 shares during the last quarter. Teacher Retirement System of Texas increased its position in WellCare Health Plans by 316.7% during the fourth quarter. Teacher Retirement System of Texas now owns 15,285 shares of the company’s stock worth $3,074,000 after purchasing an additional 11,617 shares during the last quarter. Price Capital Management Inc. acquired a new position in WellCare Health Plans during the fourth quarter worth approximately $1,527,000. Finally, Public Employees Retirement Association of Colorado increased its position in WellCare Health Plans by 3.0% during the fourth quarter. Public Employees Retirement Association of Colorado now owns 9,735 shares of the company’s stock worth $1,958,000 after purchasing an additional 284 shares during the last quarter. 99.28% of the stock is owned by hedge funds and other institutional investors.
About WellCare Health Plans
WellCare Health Plans, Inc is a managed care company. The Company focuses on government-sponsored managed care services, primarily through Medicaid, Medicare Advantage (MA) and Medicare Prescription Drug Plans (PDPs), to families, children, seniors and individuals with medical needs. The Company operates through three segments: Medicaid Health Plans, Medicare Health Plans and Medicare PDPs.
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