Unitedhealth Group Inc
recently disclosed that they own a 7.7% stake in Evolent Health Inc (NYSE:EVH) in a Schedule 13D disclosure that was filed with the Securities and Exchange Commission (SEC) on Monday, November 27th. The investor owns 5,901,065 shares of the stock worth approximately $71,402,887. The reporting parties listed on the disclosure included UnitedHealth Group Incorporated and The Advisory Board Company. The filing is available through the SEC website at this link.
Unitedhealth Group Inc
provided the following explanation of their ownership:
The information set forth in Item 3 of this Schedule 13D is
incorporated by reference into this Item 4.
From time to time, the Reporting Persons may acquire additional shares of Class A Common
Stock of the Issuer or determine to dispose of all or a portion of the shares of Class A Common Stock of the Issuer beneficially owned by them. The Reporting Persons intend to review their investment in the Issuer on a continuing basis and,
upon further developments, including the ongoing evaluation of the Issuer’s business, financial condition, operating results and prospects, the business and prospects of UNH and ABCO, other investment and business opportunities available to the
Reporting Persons, general stock market and economic conditions, and tax considerations, and other factors may change their investment in the Issuer.
Pursuant to the Stockholders Agreement by and among the Issuer, ABCO, TPG Global, LLC and its affiliates and the University of Pittsburgh
Medical Center, dated as of June 4,2015 (the “Stockholders Agreement”), for so long as ABCO and the other parties to the Stockholders Agreement own at least 40% of the shares of common stock of the Issuer (including both the
Class A Common Stock and Class B common stock of the Issuer) held by it following the completion of the Issuer’s IPO, such stockholder will be entitled to nominate two directors to serve on the Issuer’s board of directors. If
such stockholder owns less than 40%, but at least 5%, of the shares of common stock of the Issuer (including both Class A Common Stock and Class B common stock of the Issuer) held by it following the completion of the Issuer’s IPO,
such stockholder will be entitled to nominate one director to serve on the Issuer’s board of directors. ABCO and the other parties to the Stockholders Agreement have agreed to vote for each other’s board nominees. Pursuant to these
provisions, Michael D’Amato and Michael Kirshbaum served as ABCO’s designees on the Issuer’s board of directors prior to the Closing Date. In connection with the closing of the Merger, and effective as of the Closing Date, Michael
Kirshbaum resigned as a director on the Issuer’s board of directors. ABCO has not nominated a replacement director for Michael Kirshbaum, but retains the right to nominate a replacement director pursuant to the Stockholders Agreement.
Except as noted above, none of the Reporting Persons currently have any plans or proposals that relate to or would result in any of the
actions specified in clause (a) through (j) of Item 4 of Schedule 13D.
Other institutional investors and hedge funds also recently added to or reduced their stakes in the company. ETF Managers Group LLC bought a new position in shares of Evolent Health during the 2nd quarter valued at about $102,000. BNP Paribas Arbitrage SA boosted its holdings in shares of Evolent Health by 815.4% during the 2nd quarter. BNP Paribas Arbitrage SA now owns 4,751 shares of the technology company’s stock valued at $120,000 after purchasing an additional 4,232 shares during the last quarter. First Mercantile Trust Co. bought a new position in shares of Evolent Health during the 2nd quarter valued at about $198,000. Royal Bank of Canada boosted its holdings in shares of Evolent Health by 1,197.8% during the 2nd quarter. Royal Bank of Canada now owns 8,293 shares of the technology company’s stock valued at $210,000 after purchasing an additional 7,654 shares during the last quarter. Finally, SG Americas Securities LLC bought a new position in shares of Evolent Health during the 3rd quarter valued at about $156,000. 98.53% of the stock is owned by institutional investors and hedge funds.
Shares of Evolent Health Inc (NYSE:EVH) traded up $0.05 during trading hours on Monday, hitting $12.10. 864,305 shares of the company were exchanged, compared to its average volume of 1,224,164. The company has a quick ratio of 3.34, a current ratio of 3.34 and a debt-to-equity ratio of 0.11. Evolent Health Inc has a 1 year low of $10.30 and a 1 year high of $27.50.
Evolent Health (NYSE:EVH) last posted its quarterly earnings data on Thursday, November 2nd. The technology company reported ($0.04) earnings per share for the quarter, topping the Zacks’ consensus estimate of ($0.08) by $0.04. Evolent Health had a negative net margin of 15.86% and a negative return on equity of 5.05%. The company had revenue of $107.90 million for the quarter, compared to analyst estimates of $104.49 million. During the same period in the prior year, the company posted ($0.26) EPS. The firm’s revenue for the quarter was up 79.2% on a year-over-year basis. sell-side analysts forecast that Evolent Health Inc will post -0.57 earnings per share for the current year.
EVH has been the subject of a number of analyst reports. BidaskClub downgraded shares of Evolent Health from a “hold” rating to a “sell” rating in a report on Saturday, August 12th. Cowen Inc reaffirmed an “outperform” rating and issued a $29.00 price target (down previously from $33.00) on shares of Evolent Health in a report on Friday, October 6th. SunTrust Banks, Inc. reaffirmed a “buy” rating and issued a $30.00 price target on shares of Evolent Health in a report on Friday, November 3rd. Jefferies Group LLC reaffirmed a “buy” rating and issued a $28.00 price target on shares of Evolent Health in a report on Wednesday, September 6th. Finally, J P Morgan Chase & Co reaffirmed a “buy” rating on shares of Evolent Health in a report on Friday, August 18th. Two analysts have rated the stock with a sell rating, one has given a hold rating and thirteen have issued a buy rating to the stock. The company has a consensus rating of “Buy” and an average target price of $28.00.
Evolent Health Company Profile
Evolent Health, Inc is engaged in healthcare delivery and payment. The Company supports health systems and physician organizations in their migration toward value-based care and population health management. The Company provides an end-to-end, technology-enabled services platform for providers. The Company’s platform, powered by its technology, processes and integrated services, enables providers to migrate their economic orientation from fee-for-service (FFS) reimbursement to payment models that reward value-based payment models.
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