Elevance Health (NYSE:ELV) Shares Gap Down Following Weak Earnings

Shares of Elevance Health, Inc. (NYSE:ELV) gapped down prior to trading on Thursday following a dissappointing earnings announcement. The stock had previously closed at $344.55, but opened at $334.00. Elevance Health shares last traded at $307.00, with a volume of 2,170,746 shares changing hands.

The company reported $8.84 earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of $9.30 by ($0.46). The business had revenue of $49.42 billion for the quarter, compared to the consensus estimate of $48.26 billion. Elevance Health had a net margin of 3.23% and a return on equity of 18.61%. The company’s revenue was up 14.3% on a year-over-year basis. During the same period in the previous year, the firm earned $10.12 EPS.

Elevance Health Announces Dividend

The company also recently announced a quarterly dividend, which was paid on Wednesday, June 25th. Investors of record on Tuesday, June 10th were issued a $1.71 dividend. This represents a $6.84 annualized dividend and a yield of 2.27%. The ex-dividend date of this dividend was Tuesday, June 10th. Elevance Health’s dividend payout ratio is currently 26.69%.

Analyst Upgrades and Downgrades

Several research analysts recently weighed in on the stock. Guggenheim reaffirmed a “buy” rating and issued a $518.00 target price on shares of Elevance Health in a report on Wednesday, April 23rd. Wells Fargo & Company dropped their target price on shares of Elevance Health from $478.00 to $400.00 and set an “overweight” rating for the company in a report on Tuesday. Barclays dropped their target price on shares of Elevance Health from $480.00 to $434.00 and set an “overweight” rating for the company in a report on Wednesday, July 9th. Cantor Fitzgerald reiterated an “overweight” rating and issued a $485.00 price target on shares of Elevance Health in a research note on Wednesday, April 23rd. Finally, Sanford C. Bernstein reissued an “outperform” rating on shares of Elevance Health in a report on Friday, March 28th. Four investment analysts have rated the stock with a hold rating and thirteen have issued a buy rating to the company. Based on data from MarketBeat, the company currently has an average rating of “Moderate Buy” and an average target price of $481.87.

Insider Buying and Selling

In other Elevance Health news, CFO Mark Kaye sold 4,588 shares of the company’s stock in a transaction dated Thursday, April 24th. The shares were sold at an average price of $424.82, for a total value of $1,949,074.16. Following the transaction, the chief financial officer directly owned 18,977 shares in the company, valued at $8,061,809.14. This represents a 19.47% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this hyperlink. Insiders own 0.29% of the company’s stock.

Hedge Funds Weigh In On Elevance Health

A number of hedge funds have recently added to or reduced their stakes in ELV. CIBC Private Wealth Group LLC boosted its stake in shares of Elevance Health by 82.9% during the fourth quarter. CIBC Private Wealth Group LLC now owns 720,367 shares of the company’s stock valued at $276,073,000 after purchasing an additional 326,543 shares in the last quarter. CWA Asset Management Group LLC bought a new position in shares of Elevance Health during the first quarter valued at approximately $299,000. GAMMA Investing LLC boosted its stake in shares of Elevance Health by 88.1% during the first quarter. GAMMA Investing LLC now owns 3,390 shares of the company’s stock valued at $1,475,000 after purchasing an additional 1,588 shares in the last quarter. Ritholtz Wealth Management boosted its stake in shares of Elevance Health by 185.7% during the first quarter. Ritholtz Wealth Management now owns 3,083 shares of the company’s stock valued at $1,341,000 after purchasing an additional 2,004 shares in the last quarter. Finally, Wealth Enhancement Advisory Services LLC boosted its stake in shares of Elevance Health by 36.8% during the first quarter. Wealth Enhancement Advisory Services LLC now owns 27,566 shares of the company’s stock valued at $11,991,000 after purchasing an additional 7,410 shares in the last quarter. 89.24% of the stock is currently owned by institutional investors.

Elevance Health Trading Down 12.5%

The company has a quick ratio of 1.43, a current ratio of 1.43 and a debt-to-equity ratio of 0.66. The stock’s 50 day moving average price is $374.07 and its 200-day moving average price is $396.26. The stock has a market capitalization of $68.08 billion, a P/E ratio of 11.76, a P/E/G ratio of 0.88 and a beta of 0.60.

Elevance Health Company Profile

Elevance Health, Inc, together with its subsidiaries, operates as a health benefits company in the United States. The company operates through four segments: Health Benefits, CarelonRx, Carelon Services, and Corporate & Other. It offers a variety of health plans and services to program members; health products; an array of fee-based administrative managed care services; and specialty and other insurance products and services, such as stop loss, dental, vision, life, disability, and supplemental health insurance benefits.