Kendrick Charles Morgan JR, Executive Vice President and President of Commercial at Elevance Health, Inc. (NYSE:ELV), has sold 7,417 shares of the company’s common stock. The shares were sold at an average price of $432.14, amounting to a total transaction value of approximately $3.2 million. Following this sale, Morgan retains ownership of 8,423 shares in the company. The transaction was executed on October 18, 2024, and the sale price reflects a weighted average from trades conducted at prices ranging from $432.08 to $432.32.
In other recent news, Elevance Health Inc. has encountered some financial challenges, as indicated by its Q3 2024 earnings report. The company reported an adjusted diluted EPS of $8.37, lower than expected due to increased medical costs in its Medicaid business. Consequently, Elevance adjusted its full-year outlook for adjusted EPS to approximately $33. Despite these challenges, the company reported a 5% increase in total operating revenue to $44.7 billion, and a significant growth in commercial membership by nearly 600,000 year-over-year.
In response to these developments, RBC Capital Markets and Truist Securities have adjusted their price targets for Elevance. RBC Capital reduced its target to $478, while maintaining an Outperform rating. Truist Securities, on the other hand, lowered its price target from $620 to $520, but also maintained a Buy rating on the company's stock.
Elevance has projected strong revenue growth in 2025 and beyond, anticipating growth in individual Medicare Advantage membership for 2025, and expecting continued growth in the commercial business. The company also announced the acquisition of CareBridge for home-based care, aiming to improve member and provider experiences while enhancing operational efficiency. Despite these recent developments, Elevance Health anticipates improvements in 2025, signaling their commitment to long-term growth strategies, even amid current challenges in the Medicaid sector.
InvestingPro Insights
To provide additional context to the recent insider sale by Kendrick Charles Morgan JR, it's worth examining some key financial metrics and insights from InvestingPro for Elevance Health, Inc. (NYSE:ELV).
As of the latest data, Elevance Health boasts a market capitalization of $99.48 billion, positioning it as a prominent player in the Healthcare Providers & Services industry. The company's P/E ratio stands at 15.65, which is relatively modest for the sector, suggesting potential value for investors.
InvestingPro Tips highlight that Elevance Health has been aggressively buying back shares, which could be seen as a positive signal of management's confidence in the company's future prospects. Additionally, the company has raised its dividend for 14 consecutive years, demonstrating a commitment to returning value to shareholders. This consistent dividend growth, coupled with a current dividend yield of 1.47%, may appeal to income-focused investors.
However, it's important to note that the stock has taken a significant hit recently, with a 1-week price total return of -11.46% and a 1-month return of -17.63%. This recent downturn has brought the stock to 75.94% of its 52-week high, potentially presenting a buying opportunity for those who believe in the company's long-term prospects.
Financially, Elevance Health appears robust, with revenue of $174.01 billion over the last twelve months and a revenue growth of 3.2% during the same period. The company's profitability is also noteworthy, with a gross profit of $48.61 billion and an operating income of $10.61 billion.
For investors seeking a more comprehensive analysis, InvestingPro offers 13 additional tips for Elevance Health, providing a deeper understanding of the company's financial health and market position.
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