Investment Management Corp of Ontario has significantly increased its holdings in Elevance Health, Inc. (NYSE: ELV) by 58.7% during the second quarter of 2023. According to the firm’s latest Form 13F filing with the Securities and Exchange Commission (SEC), the investment company now owns 29,386 shares after acquiring an additional 10,875 shares. This investment is valued at approximately $11,430,000 as of the end of the quarter.
Several other institutional investors have also made notable adjustments to their positions in Elevance Health. Norges Bank established a new position valued at around $1,148,379,000 during the second quarter. Sanders Capital LLC increased its stake by 24.7%, now holding 5,825,208 shares worth $2,265,773,000 after acquiring an additional 1,152,440 shares. Additionally, Beutel Goodman & Co Ltd. purchased a new stake valued at about $293,141,000, while Vanguard Group Inc. raised its position by 3.2%, now owning 22,856,898 shares worth $8,890,419,000. Overall, institutional investors currently own 89.24% of Elevance Health’s stock.
Analysts Provide Mixed Ratings Amid Positive Performance
Research analysts have recently assessed Elevance Health, providing a spectrum of ratings. Notably, JPMorgan Chase & Co. raised its price target for the company from $384.00 to $394.00, rating it as “overweight.” Weiss Ratings upgraded the stock from a “sell (d+)” to a “hold (c-)” rating. Conversely, UBS Group reduced its price target from $435.00 to $425.00, while maintaining a “buy” rating. Wells Fargo & Company lowered its price objective from $412.00 to $403.00, also rating it as “overweight.”
In total, twelve equities research analysts have classified Elevance Health with a Buy rating, while eleven have assigned a Hold rating. Based on data from MarketBeat, the stock currently holds an average rating of “Moderate Buy” along with an average price target of $398.44.
Financial Results Exceed Expectations
Shares of Elevance Health opened at $330.65 on October 21, 2023. The company reported a robust market capitalization of $73.48 billion and a price-to-earnings (P/E) ratio of 13.52. The firm has a debt-to-equity ratio of 0.71 and a quick and current ratio of 1.56 each.
In its latest earnings report, Elevance Health announced earnings per share (EPS) of $6.03 for the quarter, surpassing the consensus estimate of $5.03 by $1.00. The company generated revenue of $50.09 billion, exceeding analysts’ expectations of $49.26 billion. The net margin stood at 2.84%, with a return on equity of 16.17%. This quarterly revenue reflected a year-over-year increase of 12.0%, compared to the same quarter last year, during which the company recorded an EPS of $8.37.
Looking ahead, analysts anticipate that Elevance Health, Inc. will post an average of 33.96 earnings per share for the current fiscal year.
Upcoming Dividend Payment
In addition to its financial performance, Elevance Health has announced a quarterly dividend of $1.71 per share, set to be paid on December 19, 2023. Shareholders of record as of December 5 will qualify for this dividend, which represents an annualized yield of 2.1%. The company’s dividend payout ratio (DPR) is currently 27.96%.
Elevance Health, Inc. operates as a health benefits company in the United States, providing a range of health plans and services through its various segments, including Health Benefits, CarelonRx, Carelon Services, and Corporate & Other. The firm offers diverse health products, administrative managed care services, and specialty insurance products, including dental and vision coverage.
As institutional interest in Elevance Health continues to grow, it remains a key player within the healthcare sector, reflecting both investor confidence and solid financial performance.
