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Insiders Active in Managed Care Giant After Big NYC Contract

by | Aug 1, 2021

Anthem (ANTM) with a sizable insider buy this week from director Ryan Schneider of 1300 shares at $384.36, a nearly $500,000 investment. Schneider also bought stock in February at $296.03, another $500K worth. ANTM has traded well in 2021, up around 20%, and coiled in a weekly flag under $400 and recent highs. A breakout has room to $425 in the short-term but longer-term trend targets $460. The $94B healthcare company trades 13.45X earnings, 0.73X sales, and 18X cash. ANTM is coming off of a strong quarter with over 230,000 new enrollment adds and a positive outlook from management as COVID impacts are abating and healthcare utilization improving. ANTM also expects to grow EPS around 12% in 2022, improving on the 2019 growth rate pre-COVID. ANTM recently signed a big new group MA contract in NYC with EmblemHealth that could add between 200,000 and 250,000 additional enrollments and somewhere between $2,5B and $3B in revenue annually. Analysts have an average target for shares of $417.50 with a Street High $465. Barclays raising their target to $450 citing higher earnings growth post the company’s Q2 results. They also note that Medicaid enrollment once again increased sequentially, which was better than expected versus the backdrop of an improving labor market. Short interest is 1%. Hedge fund ownership rose 2.8% in Q1, Brave Warrior adding nearly 400k shares and now with 1.16M, their top position.

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