Healthways Inc. (HWAY) Lifted to Buy at Zacks Investment Research
Healthways Inc. (NASDAQ:HWAY) was upgraded by Zacks Investment Research from a “hold” rating to a “buy” rating in a research note issued to investors on Wednesday. The brokerage currently has a $29.00 target price on the stock. Zacks Investment Research’s target price would suggest a potential upside of 13.37% from the company’s current price.
According to Zacks, “We believe that Healthways has a substantial pipeline of potential contracts with new and existing customers in both domestic and international markets, which should drive growth. The recently completed organizational restructure is expected to generate cost savings from full-year 2017, which will boost profitability. Meanwhile, estimates have been going up after posting stable second-quarterly results. We note that the company has positive record of earnings surprises in recent quarters. Thus we feel the Healthways stock offers investors a pocket of opportunity to benefit from Zacks wisdom.”
A number of other analysts also recently issued reports on the company. Barclays PLC raised Healthways from an “underweight” rating to an “equal weight” rating and raised their price objective for the stock from $12.00 to $27.00 in a research report on Monday, August 22nd. Jefferies Group set a $26.00 price objective on Healthways and gave the stock a “hold” rating in a research report on Thursday, August 18th. FBR & Co raised their price objective on Healthways from $16.00 to $21.00 and gave the stock an “outperform” rating in a research report on Wednesday, August 10th. Piper Jaffray Cos. raised their price objective on Healthways from $15.00 to $25.50 and gave the stock an “overweight” rating in a research report on Wednesday, August 10th. Finally, Oppenheimer Holdings Inc. raised Healthways to an “outperform” rating and set a $27.00 price objective for the company in a research report on Sunday, August 14th. Two investment analysts have rated the stock with a hold rating and five have given a buy rating to the company. The stock has a consensus rating of “Buy” and an average price target of $24.21.
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Shares of Healthways (NASDAQ:HWAY) traded down 2.85% during midday trading on Wednesday, reaching $24.85. 203,799 shares of the company traded hands. The stock has a 50 day moving average price of $23.38 and a 200 day moving average price of $14.64. Healthways has a 1-year low of $9.18 and a 1-year high of $27.30. The firm’s market capitalization is $912.94 million.
Healthways (NASDAQ:HWAY) last issued its earnings results on Tuesday, August 9th. The company reported $0.54 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $0.01 by $0.53. Healthways had a positive return on equity of 8.83% and a negative net margin of 31.32%. The business earned $125 million during the quarter, compared to the consensus estimate of $186.88 million. During the same period last year, the company earned $0.11 EPS. The company’s revenue for the quarter was up 10.2% on a year-over-year basis. Analysts expect that Healthways will post $2.11 earnings per share for the current fiscal year.
In related news, Director Mary Jane England sold 3,816 shares of the firm’s stock in a transaction dated Friday, August 26th. The stock was sold at an average price of $24.78, for a total transaction of $94,560.48. Following the completion of the transaction, the director now directly owns 39,068 shares in the company, valued at approximately $968,105.04. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this hyperlink. Corporate insiders own 14.01% of the company’s stock.
A number of institutional investors have recently made changes to their positions in HWAY. Acrospire Investment Management LLC boosted its position in shares of Healthways by 80.9% in the second quarter. Acrospire Investment Management LLC now owns 9,612 shares of the company’s stock valued at $111,000 after buying an additional 4,300 shares during the last quarter. Quantitative Systematic Strategies LLC bought a new position in shares of Healthways during the second quarter valued at about $118,000. Profund Advisors LLC boosted its position in shares of Healthways by 4.5% in the second quarter. Profund Advisors LLC now owns 10,668 shares of the company’s stock valued at $123,000 after buying an additional 456 shares during the last quarter. Loring Wolcott & Coolidge Fiduciary Advisors LLP MA boosted its position in shares of Healthways by 7.6% in the second quarter. Loring Wolcott & Coolidge Fiduciary Advisors LLP MA now owns 11,685 shares of the company’s stock valued at $135,000 after buying an additional 825 shares during the last quarter. Finally, Magnetar Financial LLC bought a new position in shares of Healthways during the first quarter valued at about $140,000. Institutional investors own 92.52% of the company’s stock.
Healthways, Inc (Healthways) provides network delivered solutions and population health management services that are designed to help people manage their wellbeing, thereby managing their health and productivity, and their health-related costs. The Company operates in the domestic and international segments, which are collectively known as the well-being improvement services segment.
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