Elevance Health (NYSE:ELV) Shares Gap Up - Here's Why

Key Points

• Elevance Health shares surged from a previous close of $295.43 to open at $311.00, reflecting investor interest and market volatility, with the stock last trading at $306.30.
• Recent analysts' reports show a mixed outlook, with price target revisions ranging from $316.00 to $484.00, and a current consensus rating of "Moderate Buy".
• The company announced a quarterly dividend of $1.71 to shareholders, contributing to a dividend yield of 2.2% and a payout ratio of 29.11%.

Elevance Health, Inc. (NYSE:ELV - Get Free Report) shares gapped up prior to trading on Friday . The stock had previously closed at $295.43, but opened at $311.00. Elevance Health shares last traded at $306.30, with a volume of 678,449 shares changing hands.

Analyst Ratings Changes

ELV has been the subject of several recent research reports. Truist Financial reduced their price target on Elevance Health from $500.00 to $440.00 and set a "buy" rating for the company in a research note on Wednesday, July 16th. JPMorgan Chase & Co. reduced their price target on Elevance Health from $472.00 to $384.00 and set an "overweight" rating for the company in a research note on Tuesday, July 22nd. Barclays reduced their price target on Elevance Health from $434.00 to $358.00 and set an "overweight" rating for the company in a research note on Friday, July 18th. Leerink Partnrs downgraded Elevance Health from a "strong-buy" rating to a "hold" rating in a research note on Thursday, July 17th. Finally, Cantor Fitzgerald restated an "overweight" rating and issued a $485.00 price target on shares of Elevance Health in a research note on Wednesday, April 23rd. Twelve equities research analysts have rated the stock with a Buy rating and six have issued a Hold rating to the company. According to MarketBeat.com, the company currently has an average rating of "Moderate Buy" and a consensus target price of $413.81.

Elevance Health Price Performance

The company has a debt-to-equity ratio of 0.64, a quick ratio of 1.44 and a current ratio of 1.44. The stock has a market capitalization of $69.96 billion, a price-to-earnings ratio of 13.22, a PEG ratio of 1.13 and a beta of 0.58. The company has a fifty day simple moving average of $328.49 and a two-hundred day simple moving average of $380.45.

Elevance Health (NYSE:ELV - Get Free Report) last posted its quarterly earnings results on Thursday, July 17th. The company reported $8.84 EPS for the quarter, missing analysts' consensus estimates of $9.30 by ($0.46). Elevance Health had a return on equity of 17.59% and a net margin of 2.83%.The business had revenue of $49.42 billion for the quarter, compared to analyst estimates of $48.26 billion. During the same period last year, the firm posted $10.12 EPS. Elevance Health's quarterly revenue was up 14.3% on a year-over-year basis. As a group, equities research analysts expect that Elevance Health, Inc. will post 33.96 earnings per share for the current fiscal year.

Elevance Health Dividend Announcement

The firm also recently declared a quarterly dividend, which will be paid on Thursday, September 25th. Stockholders of record on Wednesday, September 10th will be issued a dividend of $1.71 per share. The ex-dividend date of this dividend is Wednesday, September 10th. This represents a $6.84 dividend on an annualized basis and a dividend yield of 2.2%. Elevance Health's payout ratio is 29.11%.

Insider Activity at Elevance Health

In other Elevance Health news, CEO Gail Boudreaux purchased 8,500 shares of the stock in a transaction dated Friday, July 18th. The stock was bought at an average price of $286.94 per share, with a total value of $2,438,990.00. Following the acquisition, the chief executive officer owned 151,020 shares of the company's stock, valued at approximately $43,333,678.80. This represents a 5.96% increase in their ownership of the stock. The purchase was disclosed in a legal filing with the SEC, which is available through this hyperlink. Company insiders own 0.29% of the company's stock.

Hedge Funds Weigh In On Elevance Health

A number of institutional investors have recently modified their holdings of ELV. Accredited Wealth Management LLC bought a new stake in Elevance Health during the 4th quarter worth $25,000. Private Wealth Management Group LLC grew its position in Elevance Health by 152.0% during the 1st quarter. Private Wealth Management Group LLC now owns 63 shares of the company's stock worth $27,000 after acquiring an additional 38 shares during the last quarter. WPG Advisers LLC bought a new stake in Elevance Health during the 1st quarter worth $29,000. Vermillion & White Wealth Management Group LLC grew its position in Elevance Health by 94.9% during the 2nd quarter. Vermillion & White Wealth Management Group LLC now owns 76 shares of the company's stock worth $30,000 after acquiring an additional 37 shares during the last quarter. Finally, Riverview Trust Co grew its position in Elevance Health by 1,340.0% during the 1st quarter. Riverview Trust Co now owns 72 shares of the company's stock worth $31,000 after acquiring an additional 67 shares during the last quarter. Institutional investors and hedge funds own 89.24% of the company's stock.

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.