Short Interest in eHealth, Inc. (NASDAQ:EHTH) Increases By 16.9%

Key Points

• Short interest rose 16.9% to 1,898,345 shares as of April 15, representing 6.4% of float and a days-to-cover ratio of about 3.4 days.
• CFO bought stock — John Joseph Dolan purchased 25,000 shares at $1.53 (a 13.6% increase in his holdings); insiders own 5.20% of the company while hedge funds/institutions hold about 79.54%.
• Analyst sentiment is muted with an average rating of "Reduce" and a consensus target of $3.33; the company recently missed EPS expectations (reported $2.06 vs. $2.38) and the stock trades around $1.97 with a ~$61.2M market cap.

eHealth, Inc. (NASDAQ:EHTH - Get Free Report) was the target of a significant increase in short interest during the month of April. As of April 15th, there was short interest totaling 1,898,345 shares, an increase of 16.9% from the March 31st total of 1,624,164 shares. Currently, 6.4% of the shares of the company are sold short. Based on an average daily volume of 557,480 shares, the days-to-cover ratio is presently 3.4 days.

Insiders Place Their Bets

In other eHealth news, CFO John Joseph Dolan bought 25,000 shares of the business's stock in a transaction on Friday, March 6th. The stock was purchased at an average price of $1.53 per share, for a total transaction of $38,250.00. Following the completion of the transaction, the chief financial officer directly owned 208,755 shares of the company's stock, valued at $319,395.15. This trade represents a 13.61% increase in their ownership of the stock. The acquisition was disclosed in a filing with the SEC, which is accessible through this hyperlink. 5.20% of the stock is owned by corporate insiders.

Hedge Funds Weigh In On eHealth

Hedge funds and other institutional investors have recently modified their holdings of the company. J. Goldman & Co LP purchased a new position in shares of eHealth during the 4th quarter valued at about $3,134,000. Nantahala Capital Management LLC boosted its stake in eHealth by 34.3% in the third quarter. Nantahala Capital Management LLC now owns 1,761,441 shares of the financial services provider's stock worth $7,592,000 after buying an additional 450,000 shares in the last quarter. Mackenzie Financial Corp bought a new position in eHealth during the third quarter valued at approximately $1,711,000. Geode Capital Management LLC grew its position in eHealth by 101.3% during the second quarter. Geode Capital Management LLC now owns 711,762 shares of the financial services provider's stock valued at $3,097,000 after acquiring an additional 358,192 shares during the last quarter. Finally, Millennium Management LLC raised its stake in shares of eHealth by 74.3% during the first quarter. Millennium Management LLC now owns 705,704 shares of the financial services provider's stock worth $4,714,000 after acquiring an additional 300,792 shares in the last quarter. 79.54% of the stock is currently owned by hedge funds and other institutional investors.

Wall Street Analysts Forecast Growth

EHTH has been the subject of several analyst reports. Zacks Research raised shares of eHealth from a "strong sell" rating to a "hold" rating in a report on Tuesday. Royal Bank Of Canada lowered their target price on shares of eHealth from $9.00 to $3.00 and set a "sector perform" rating on the stock in a report on Wednesday, March 11th. Finally, Craig Hallum downgraded eHealth from a "buy" rating to a "hold" rating and set a $2.00 target price on the stock. in a research report on Thursday, February 26th. Four equities research analysts have rated the stock with a Hold rating and one has assigned a Sell rating to the stock. According to MarketBeat.com, eHealth presently has an average rating of "Reduce" and a consensus price target of $3.33.

eHealth Stock Performance

eHealth stock opened at $1.97 on Thursday. The firm's fifty day moving average price is $1.54 and its 200-day moving average price is $3.07. The company has a debt-to-equity ratio of 0.19, a quick ratio of 1.03 and a current ratio of 1.03. The stock has a market cap of $61.21 million, a P/E ratio of -2.77 and a beta of 1.15. eHealth has a fifty-two week low of $1.20 and a fifty-two week high of $7.09.

eHealth (NASDAQ:EHTH - Get Free Report) last announced its earnings results on Wednesday, February 25th. The financial services provider reported $2.06 earnings per share (EPS) for the quarter, missing the consensus estimate of $2.38 by ($0.32). The company had revenue of $326.24 million during the quarter, compared to analysts' expectations of $318.25 million. eHealth had a return on equity of 5.46% and a net margin of 6.12%. On average, equities research analysts expect that eHealth will post 0.54 earnings per share for the current fiscal year.

eHealth Company Profile

eHealth, Inc operates one of the largest online private health insurance exchanges in the United States. The company's platform enables consumers to compare, select and enroll in individual, family and small-group health insurance plans offered by a broad network of licensed insurance carriers. In addition to Affordable Care Act–compliant offerings, eHealth provides dedicated services for Medicare Advantage, Medicare Supplement and Medicare Part D prescription drug plans, helping seniors navigate the complexities of Medicare coverage.

Through its digital marketplace, eHealth delivers real-time quotes, detailed plan comparisons and enrollment processing.

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