NYSE:HNT
$23.39
(2/9 3:27PM)
+1.2%
| Open | $23.41 |
Mkt Cap | $2.4 Billion |
| High | $23.63 |
52Wk High | $26.73 |
| Low | $23.01 |
52Wk Low | $10.52 |
| Volume | 931,711 |
Avg Vol 10D | 1.5 Million |
Ockham's Rating/Recommendation Summary
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HNT Revenue
Cash earnings is the most important factor in our analysis, but it goes without saying that if a company cannot produce sales then there is no ability to generate cash flow. By that logic we look very closely at revenue numbers as our second most important factor in valuing a company's stock. We have established reasonable Price to Sales per share ranges based on historical data of the last 10 years. For, HNT the high and low end of the Price to Sales per share ratios are 0.41x and 0.22x respectively.
Notice that HNT's current Price to Sales per share ratio is 0.15x, which is quite a bit below what we consider a normal Price to Sales ratio for this stock. Given normal conditions and a price of $22.86, HNT is 52% below where we would expect to see it. This will beneficially factor into our final analysis of HNT as it is not often that this stock sinks to these levels.
HNT Cash Earnings
As a value investment framework, Ockham Research is similar to a private equity firm in terms of our valuation methods. We are always on the lookout for value in the form of sales and cash numbers. In the case of HNT, Ockham views their current Cash Earnings as significantly above its historical average multiple of cash earnings as calculated by Ockham. Similar to our analysis of sales per share, Ockham looks at the last 10 years of cash earnings levels for HNT to identify where the current high and low price levels have been historically in relation to profit per share. Again, we utilize a weighted average methodology which relies more heavily on recent years of data. This weighted average framework provides us with an average high Price to Cash Earnings ratio per share of 53.33 and a 25.00 low over the same period.
Just recall that when a stock's price, as in the cases of HNT, is significantly elevated to the level of Cash Earnings being generated, the market has already priced in much of that value. For example, the historical average for HNT's Price to Cash Earnings ratio is 94% below the current ratio of 76.20. That is not an insignificant amount, and diminishes our overall outlook on HNT. However, you need to review several areas of a company's potential, and as management would point out, one metric is not the end-all-be-all of any analysis.
HNT Dividends
A positive Ockham rating does not require a company to pay out an inviting dividend or a dividend at all. However, we believe dividends provide a useful measure of a company's inherent expectations. HNT may pay a dividend at this time; however, there is an insufficient amount of history to incorporate it into our analysis. Therefore, we are not utilizing the dividends or lack thereof in our study. As HNT more consistent dividend history is made available, we will begin to factor this into the Ockham approach.
The Opening Bell on Fox Business: Get Plugged into HNT News Regarding The CEO
Keeping up with a CEO is one way that we try to better understand the direction of a company, and there was talk about HNT management on The Opening Bell on Fox Business.
While bearish sentiment on a stock is not always a bad thing, it is something you need to be aware of. The Motley Fool survey of crowd sentiment shows that many investors believe this stock will underperform. Based on our methodology, Health Net, Incorporated should hold some appeal to value investors as we view it as Undervalued. We noticed recently that in comparison to all other stocks we analyze in the news; HNT has received less coverage from the financial media in business television and blogs.
“… Joining me right now, jay gellert, the chairman of h and p and insurer of HEALTH NET. Joins us in a fox business how are you doing? > > how are you doing, alexis. …”
The Chief Executive of HNT Was Discussed on The Opening Bell on Fox Business
Health Net, Incorporated's CEO is obviously vital to his company, so we believe any news covering him is worth knowing for investors.
When taking into account the amount of news coverage each stock normally sees as a percentage of the total, Health Net, Incorporated has actually sunk a bit in comparison to the others. Interestingly, overall sentiment looks bearish according to the Motley Fool's CAPS survey, as most of their users see Health Net, Incorporated underperforming. At present, Ockham has a valuation stance of Undervalued on HNT, as we could see significant price appreciation based on current fundamentals like cash earnings and revenue.
“… We'll go live to the new york stock exchange, we'll get a preview and later a fox business exclusive with the ceo of HEALTH NET. …”
Health Net, Incorporated Dividend News from Closing Bell
If HNT's dividends are important to you, take a look at the news as they were the topic of conversation on Closing Bell.
Interestingly, overall sentiment looks bearish according to the Motley Fool's CAPS survey, as most of their users see Health Net, Incorporated underperforming. At present, Ockham has a valuation stance of Undervalued on HNT, as we could see significant price appreciation based on current fundamentals like cash earnings and revenue. When taking into account the amount of news coverage each stock normally sees as a percentage of the total, Health Net, Incorporated has actually sunk a bit in comparison to the others.
“… Continuing momentum from what we saw yesterday, humana, united health and HEALTH NET. The plus side, HEALTH NET up by telecoms verizon and at&t for yet another day showing nice e... …”
RazorWire: HNT and Regulators Talked About on Power Lunch
Regulatory issues are always of interest to investors. Recently Power Lunch covered topics including regulators and Health Net, Incorporated.
Verizon and at and tment t. Andt&t were two of the best performers yesterday. Humana, united health, and HEALTH NET and medtronic were out with earnings today and boosted the outlook and that stock was getting a nice bump by about 5.25%. Waiting on the fed minutes top of the hour to see if that's another market mover. Let's head to the nasdaq -- back to sue. >> we're going to go back down to the floor of the new york stock exchange and we are going to talk to steve grasso of
“… Humana, united health, and HEALTH NET and medtronic were out with earnings today and boosted the outlook and that stock was getting a nice bump by about 5. 25%. …”
Health Net, Incorporated (HNT) Discussed on Fox Business's The Opening Bell on Fox Business
Health Net, Incorporated is in the news. Find out how this impacts HNT trading on Ockham Research.
As well. Alexis, back down to you. President obama is boosting his push for health care reform this week saying he won't back down from a public option. What does it mean for the private insurers? Joining us in a fox business exclusive is jay dillard, the ceo of HEALTH NET. He's actually met with the planning process on reform and he joins us right now. Good to see you, jay. >> good to see you, alexis. Weg, it's interesting. There's a suggestion that he's not going to back down from the public option, but there's also a very large suggestion that the door is wide open and a lot of people are talking now about senator max baucus' plan or the senate finance committee's plans which would open the door to if it's not public, what do you >> well, first of all, we think
“… ceo of HEALTH NET. He's actually met with the planning process on reform and he joins us right now. Good to see you, jay. >> good to see you, alexis. Weg, it's interesting. There's a suggestion that he's not going to back down from the public option, but there's also a very large suggestion that the door is wide open and a lot of people are talking now about senator max baucus' plan or the senate finance committee's plans which would open the door to if it's not public, what do you >> well, first of all, we think …”
Health Net, Incorporated (HNT) Discussed on Fox Business's The Opening Bell on Fox Business
Health Net, Incorporated is in the news. Find out how this impacts HNT trading on Ockham Research.
Homework. Alexis: mr. Payne, thank you for the several early movers, we're now nine minutes into the trading day and coming up next, how will private insurers be affected by potential health insurance reform. A fox business exclusive with the ceo of HEALTH NET is next, he's been meeting with president obama on this issue, we'll ask him what type of legislation he'd like to see passed coming up next.
“… TH NET is next, he's been meeting with president obama on this issue, we'll ask him what type of legislation he'd like to see passed coming up next. …”
Health Net, Incorporated (HNT) Discussed on CNBC's Closing Bell
Health Net, Incorporated is in the news. Find out how this impacts HNT trading on Ockham Research.
Attention, obviously, on the health care stocks. The hmos coming on the back of the speech last evening from they've actually been moving to the up side. Maybe it's on the thought that there's still a long way to go before an actual plan comes out of capitol hill. Cigna, HEALTH NET and humana have also been moving to the up side. The financials, look at some of the financial stocks today. Moodies, talking about mon santo as well. It was a drag throughout the day today, seeing earnings at the lowest end of its range. That's the story here. Our team, of course, is covering we begin with bertha up at the we've been talking about the technology story as a dominant story today as well. >> it's an interesting story.
“… tol hill. Cigna, HEALTH NET and humana have also been moving to the up side. The financials, look at some of the financial stocks today. Moodies, talking about mon santo as well. It was a drag throughout the day today, seeing earnings at the lowest end of its range. That's the story here. Our team, of course, is covering we begin with bertha up at the we've been talking about the technology story as a dominant story today as well. >> it's an interesting story. …”
Health Net, Incorporated (HNT) Discussed on CNBC's Power Lunch
Health Net, Incorporated is in the news. Find out how this impacts HNT trading on Ockham Research.
Second quarter. General mills and texas instruments are to the downside. Texas instruments new 52-week high raised the outlook. Corning saw a smaller than expected decline. You have some health care stocks rising, cigna, HEALTH NET, humana are to the plus side perhaps from some of the bickering on capitol hill as to whether a health care deal is actually going to get done. The hmos are moving higher financials, a bit of a weak spot. Moody's reiterating its negative outlook for banks. Let's go to bertha at the >> we're seeing modest gains come in the internet and chip we have yahoo! And ebay both getting upgraded.
“… side perhaps from some of the bickering on capitol hill as to whether a health care deal is actually going to get done. The hmos are moving higher financials, a bit of a weak spot. Moody's reiterating its negative outlook for banks. Let's go to bertha at the >> we're seeing modest gains come in the internet and chip we have yahoo! And ebay both getting upgraded. …”
Health Net, Incorporated (HNT) Discussed on CNBC's The Call
Health Net, Incorporated is in the news. Find out how this impacts HNT trading on Ockham Research.
On average, we're still below trough evaluation models. United health care, large cap, it's probably going to work higher from here with some kind of reform that doesn't kill these guys, which is the way we're looking. Companies like HEALTH NET becoming a better focused company in the southeast. More regionalized, more package for sale. >> they're going to survive basically. >> let me just pick up on this insurance side because I agree with michelle. Not only are they going to take a higher tax which is going to cut into profits, but the idea that they're going to have to figure out how to insure everybody who walks in the door regardless of prior health conditions, regardless of preconditions, now, how are they going to pay for that without
“… better focused company in the southeast. More regionalized, more package for sale. >> they're going to survive basically. >> let me just pick up on this insurance side because I agree with michelle. Not only are they going to take a higher tax which is going to cut into profits, but the idea that they're going to have to figure out how to insure everybody who walks in the door regardless of prior health conditions, regardless of preconditions, now, how are they going to pay for that without …”
Health Net, Incorporated (HNT) Discussed on CNBC's Fast Money
Health Net, Incorporated is in the news. Find out how this impacts HNT trading on Ockham Research.
>> here's some foote food for thought, morgan stanley does this screen of potential takeover targets. I think they do this monthly and this is what comes up. Again, this is a quantitative fundamentals, it's based on metrics such as debt and ebidta. There you see HEALTH NET, kodak, chesapeake, terra, and peabody. Peabody's a name you follow, pete. >> I think it would be very it would be somebody very large,e I mean extreme. Considering I stopped out of the tomorrow morning they get taken >> with joe terranova -- >> chesapeake is actually interesting. With natural gas way down here it actually, you know, for somebody who's willing to roll the dice a little bit. >> interesting. Could be. Moving on to the next trade here, good news out of tech continued this weak as data on chip sales jumped over 5% in
“… you see HEALTH NET, kodak, chesapeake, terra, and peabody. Peabody's a name you follow, pete. >> I think it would be very it would be somebody very large,e I mean extreme. Considering I stopped out of the tomorrow morning they get taken >> with joe terranova -- >> chesapeake is actually interesting. With natural gas way down here it actually, you know, for somebody who's willing to roll the dice a little bit. >> interesting. Could be. Moving on to the next trade here, good news out of tech continued this weak as data on chip sales jumped over 5% in …”