Healthways - Value Alert
Texas (September 27, 2013) Wax Ink has issued a Negative Investment Interest opinion for Healthways, Inc. (Nasdaq: HWAY) based on a recent baseline equity review which placed fair value between $16-$19.
Negative investment interest means that the current risk reward ratio does not warrant favorable investment interest at this time.
The recent close of $18.65 is approximately 97% above the fair value buy target for the stock and approximately 4% below the fair value close target for the stock. The recent close is also 10% above analysts’ twelve-month $17.00 median price target for the stock.
The recent close represents an 60% increase in the one year price of the stock, while year-over-year sales decreased 1%, year-over-year earnings decreased 27%, and year-over-year debt increased 9%.
The stock currently has a trailing twelve-month PE Ratio of 10, and a PEG Ratio of 0.8 basis estimated forward earnings growth of 12.5%.
In the past 52 weeks, share prices have moved between a high of $22.20 and a low of $8.58, placing equilibrium at $16.35.
With the recent close, the stock is trading 19% below the 52 week high, 54% above the 52 week low, and 12% above equilibrium.
The three-month average daily trading volume for the stock is approximately 702,000 shares.
Healthways, Inc. through its subsidiaries, provides specialized solutions to assist people to maintain and enhance their physical, emotional, and social well-being.
The company's listed competitors include Accordant Health Services, Active Health Management,and OptumHealth.
Financial information that may be contained herein, is based on the company's most recent annual SEC filing for year ending December 31, 2012.
All prices are per share unless otherwise noted.
Wax Ink currently has no investment position in any company mentioned in this alert.
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