U.S. health benefits company Elevance Health, Inc. (ELV) shares have declined 29.6% quarter to date, underperforming its industry and the S&P 500 Index. Closing at $366.48 on Thursday, near its 52-week low of $362.21, the company’s current share price seems an excellent opportunity to build a position in a renowned company. After all, you would much rather buy closer to the low than the high, right?Elevance Health, headquartered in Indianapolis, IN, has a market capitalization of $84.9 billion. Its peers, U ...

SAN DIEGO, Dec. 11, 2024 (GLOBE NEWSWIRE) -- Shareholder rights law firm Robbins LLP is investigating Elevance Health Inc. (NASDAQ: ELV) to determine whether certain Elevance officers and directors violated securities laws and breached fiduciary duties to shareholders. Elevance is a healthcare company that supports consumers, families, and communities across the entire care journey. What Now: If you own shares of Elevance Health Inc. and have lost money in your investment, contact us for more information ab ...

Elevance Health (NYSE: ELV ) is one of the largest healthcare insurers in the US. During FY23, they had 45 million members and had served over 115 million people. They have enjoyed revenue growth of 9.1% over the past 10 years and 13.7% EPSWe use Cash Flow Returns On Investment based DCF valuation tools provided by our affiliate company, ROCGA Research.With over 20 years of experience in investment analysis, we are actively seeking out undervalued and quality companies.ROCGA Research is an online platform t ...

SAN DIEGO, Nov. 18, 2024 (GLOBE NEWSWIRE) -- Shareholder rights law firm Johnson Fistel, LLP is investigating whether Elevance Health, Inc. (NYSE: ELV) or any of its executive officers violated securities laws by misrepresenting or failing to timely disclose material information to investors. The investigation focuses on investors' losses and whether they may be recovered under federal securities laws. What if I purchased Elevance securities? If you purchased securities and suffered losses on your investmen ...

Elevance Health, Inc. Conference Call Summary Company Overview - **Company**: Elevance Health, Inc. (NYSE: ELV) - **Event**: UBS Global Healthcare Conference - **Date**: November 12, 2024 - **Key Speaker**: Mark Kaye, Executive VP & CFO Key Points Financial Outlook - **2025 EPS Growth**: Expected mid-single-digit growth in adjusted diluted earnings per share [2] - **Revenue Growth**: Anticipated strong acceleration into high single-digit percentage range, driven by commercial business momentum and geographic expansion into three new states [3] - **Medicare Advantage Membership**: Slightly ahead of overall market growth due to stronger retention [3] - **Investment in Technology**: Continued investment in business transformation through new technologies, including generative AI, expected to drive operational efficiencies [4] Medicaid Business Challenges - **Operating Environment**: Challenging conditions expected to persist, with Medicaid margins anticipated to remain below the long-term target range of 2% to 4% due to rate and acuity disconnects [5] - **Rate Increases**: 2024 average annual rate increases are at the highest level in a decade, but reimbursement still lags medical costs [11] - **Cost Trends**: Elevated cost trends in Medicaid membership due to higher acuity, with trends running 3x to 5x higher than normal [14][15] Medicare Advantage Strategy - **Benefit Design**: The company remains comfortable with its Medicare Advantage positioning for 2025, balancing membership and margin growth [27] - **Enrollment Growth**: Expectation for individual Medicare Advantage membership growth slightly above market rates, driven by improved retention [29] - **Margin Expectations**: Anticipated slight margin improvement in 2025, but still below target margin range of 3% to 5% [37] Commercial Business Performance - **Segment Growth**: The Commercial business has performed well, with strong retention and growth in Individual ACA membership [40] - **Cost Trends**: Higher than historical averages, but pricing remains firm and in line with expectations [41] - **Repricing Cycle**: Completion of a two-year repricing cycle expected to return to normal membership growth patterns [44] Carelon Initiatives - **Acquisitions**: Successful integration of Kroger Specialty Pharmacy and other acquisitions aimed at enhancing service offerings [50][51] - **Joint Venture**: Formation of Mosaic Health to enhance primary care delivery and value-based care [54] - **Cross-Selling Strategy**: Strong progress in expanding services to fee-based employers, targeting a shift in contribution ratios [58] Capital Deployment Strategy - **M&A Focus**: Strategic M&A remains a key component of growth, with a target of 50% of free cash flow allocated to M&A or organic reinvestment [68] - **Shareholder Returns**: Approximately 30% of free cash flow expected to be returned to shareholders through share repurchases and dividends [70] Additional Insights - **Market Disruption**: Notable market disruption due to nearly 2 million seniors receiving termination notices, impacting member shopping behavior [31] - **Geographic Variability**: Differences in geographic footprint and member mix can lead to varying cost trends and performance [19][20] - **Long-Term Strategy**: Focus on bending the cost curve down while improving health outcomes and affordability for members [72] This summary encapsulates the key insights and financial outlook discussed during the Elevance Health conference call, highlighting the company's strategic initiatives and market challenges.

Core Viewpoint - Elevance Health, Inc. has faced significant challenges leading to a 20% decline in its stock over the past three months, underperforming compared to the industry and broader market indices [1] Membership and Revenue Impact - The company has experienced a 3% year-over-year decline in overall membership as of September 30, 2024, primarily due to member attrition in the Medicaid business [1] - This decline in membership is expected to negatively impact premium growth, which is a major component of Elevance Health's revenue [1] Expense and Margin Pressure - Total expenses for the first nine months of 2024 increased by 1.9% year over year, with benefit expenses rising by 1.2% and the cost of products sold escalating by 10.3% [2] - The projected benefit expense ratio for 2024 is around 88.5%, indicating a deterioration of 150 basis points from 2023 [2] Debt and Financial Flexibility - As of September 30, 2024, Elevance Health's long-term debt stood at $24.7 billion, a 6.2% increase from December 31, 2023, leading to a 9.6% rise in interest expenses year over year [3] - The company's declining cash generation is concerning, with net cash from operations dropping 53.8% in the first nine months of 2024 compared to the prior year [4] Earnings Projections - Elevance Health has revised its 2024 adjusted net income projection down to a minimum of $33.00 from a previous minimum of $37.20, reflecting a 0.4% decline from 2023 [5] - Earnings estimates for 2024 and 2025 have been significantly revised downward by 10.3% and 14.4%, respectively, raising investor concerns [6] Strategic Initiatives - The company is expected to benefit from strategic initiatives, including expansion plans in individual state or federally-facilitated marketplaces in 2025 [7] - The Carelon unit is anticipated to improve due to enhanced risk-based capabilities and increased product revenues [7] Valuation - Elevance Health is currently trading at a forward 12-month price-to-earnings ratio of 12.03X, which is lower than the industry average of 14.66X, indicating it may be undervalued [8] Conclusion - Despite the stock appearing undervalued, ongoing challenges such as issues in the Medicaid business, rising costs, high leverage, and declining cash flows persist, suggesting current investors may consider booking profits [10]

SAN DIEGO, Nov. 07, 2024 (GLOBE NEWSWIRE) -- Shareholder rights law firm Johnson Fistel, LLP is investigating whether Elevance Health, Inc. (NYSE: ELV) or any of its executive officers or others violated securities laws by misrepresenting or failing to timely disclose material, adverse information to investors. The investigation focuses on investors’ losses and whether they may be recovered under federal securities laws. What if I purchased Elevance securities? If you purchased securities and suffered losse ...

GERMANY - 2024/02/15: In this photo illustration, Elevance Health, Inc. logo seen displayed on a ... [+] tablet. (Photo Illustration by Igor Golovnov/SOPA Images/LightRocket via Getty Images)SOPA Images/LightRocket via Getty ImagesElevance Health (NYSE: ELV) recently reported its Q3 results, with revenues exceeding but earnings missing the consensus estimates. The company reported revenue of $44.7 billion and adjusted earnings of $8.37 per share, compared to the street estimates of $43.5 billion and $9.66, ...

Core Viewpoint - The article discusses the investment positions held by the author in specific companies, indicating a long position in shares of ELV and CI, which may suggest a positive outlook on these stocks [1]. Group 1 - The author expresses a personal opinion on the investment journey and shares insights on stock ownership, options, or derivatives related to ELV and CI [1]. - The article emphasizes that the content is for informational purposes only and does not constitute investment or tax advice, highlighting the author's status as a private investor [2]. - It is noted that past performance is not indicative of future results, and the views expressed may not reflect those of the platform as a whole [3].

Core Viewpoint - Elevance Health Inc. reported weaker-than-expected earnings for Q3, with revenues increasing but profits declining significantly [1][2]. Financial Performance - The company posted revenues of $44.7 billion, a 5.3% increase year-over-year, surpassing the consensus estimate of $43.33 billion [2]. - Profit fell 21% to $1.02 billion, translating to $4.36 per share, while adjusted earnings per share (EPS) were $8.37, down from $8.99 a year ago, missing the consensus of $9.66 [2]. Future Guidance - Elevance Health expects GAAP net income per diluted share to be approximately $26.50, down from prior guidance of at least $34.05 [2]. - The company forecasts adjusted EPS of $33.00, reduced from previous guidance of at least $37.20 and consensus of $37.26 [2]. Stock Performance - Following the earnings announcement, Elevance Health shares fell 3.4% to trade at $429.30 [2]. Analyst Ratings and Price Targets - Analysts have adjusted their price targets for Elevance Health: - Cantor Fitzgerald lowered the target from $600 to $485 [2]. - RBC Capital reduced the target from $585 to $478 [2]. - Truist Securities decreased the target from $620 to $520 [2]. - UBS lowered the target from $605 to $555 [2]. - The consensus price target for Elevance Health is $573.05 based on ratings from 24 analysts, with a high of $649 and a low of $478 [3].