Health Net, Inc. (NYSE:HNT) a Sell: Barclays

In a research note issued to investors, Joshua Raskin at Barclays Reiterated their Sell rating on Health Net, Inc. (NYSE:HNT). The analyst placed a $53.00 price target on the stock which indicates a 6.03% downside to the last closing price. In the year following Joshua’s ratings, the stocks covered yield an average return of 12.3% according to TipRanks.com. In the past year 56 out of 80 recommendations or 70% were successful.

Health Net, Inc. (NYSE:HNT) shares opened the most recent trading session at 56.00 and at the time of writing the last Bid was at 55.91. In the current trading session the stock reached as high as 56.38 and dipped down to 55.78. Health Net Inc. C, a NYSE listed company, has a current market cap of 4.371B and on average over the past 3 months has seen 681811 shares trade hands on a daily basis.

On a technical level the stock has a 50 Day Moving Average of 54.2985. Based on a recent trade, this puts the equity at +3.00% away from that average. In comparing the stock’s current level to its extended history, the stock is trading -2.85% away from it’s 52-week high of 57.57 and +84.04% away from the stock’s low point over the past 52 weeks, which was 30.39. On a consensus basis, analysts have a one year target price of 59.43. The company last reported earnings per share of 1.80.

The consensus analyst estimates according to First Call for the next quarter is 0.87. The current year EPS estimate on the stock is 3.24 and the EPS estimate for next year sits at 3.99. In looking at the fundamentals, HNT has a P/E ratio of 31.33 and a price to book ratio of 2.58. The company’s Book Value is 21.872 and most recently reported EBITDA of 349.5M. The price compared to next year’s EPS estimate in the current year is 14.14.

Company Profile

Health Net, Inc. (NYSE:HNT), is a managed care company that delivers managed health care services through health plans and government-sponsored managed care plans. The Company operates in three segments: Western Region Operations, Government Contracts and Divested Operations and Services. The Company provides and administer health benefits to approximately 5.4 million individuals through group, individual, Medicare, Medicaid, United States Department of Defense, including TRICARE, and Veterans Affairs programs. Through its subsidiaries, it also offers behavioral health, substance abuse and employee assistance programs, managed health care products related to prescription drugs, managed health care product coordination for multi-region employers and administrative services for medical groups and self-funded benefits programs. On April 1, 2012, the Company’s subsidiary Health Net Life Insurance Company sold its Medicare PDP business to CVS Caremark.