With the controversial
mandate on everyone's mind, here's an in-depth look at Universal
American Corp. (
), the only company in the healthcare plan sector on a 52-week low.
Twelve companies are in the sector, with a low ratio of 0.08.
Universal American Corp. is a relatively new company, incorporated
in 2010, competing with numerous other health insurance companies,
including giants UnitedHealth Group Inc. (
), Humana (
) and Cigna Corp. (
Universal American Corp. reported financial results for the quarter
ended June 30, 2013, with revenue of $534 million and a net loss of
$91.8 million, or $1.05 per share. The company reported around $1.1
billion in revenue for the first half of 2013.
According to Richard A. Barasch, chairman and CEO of Universal
American Corp, it was a difficult quarter for the company. He
commented, "...Clearly we saw unexpected pressure on our Medicare
Advantage results but our core HMOs performed well and we are
taking the appropriate steps to improve our results in the other
parts of our Medicare Advantage business... Taking a write down of
the goodwill associated with APS Healthcare is a recognition that
the deal has not worked out the way we had expected. Nevertheless,
we remain excited about Medicaid and we are making considerable
progress on both the risk and the fee for service businesses."
Universal American's second quarter balance sheet shows total
assets were $2.4 billion, with cash and investments at $1.2
billion. As of June 30, 2013, UAM's $1.2 billion portfolio was 24%
was invested in U.S. government and agency securities.
Four billionaires are holding this stock, as of the second quarter
Universal American Corp. (
Down 4% over 12 months, Universal American Corp. has a market cap
of $644.17 million. The current share price is around $8.00, which
is 28.1% off its 52-week high of $11.13. Shares trade with a P/E
ratio of 15.80 and a P/B ratio of 0.70.
Incorporated in 2010, Universal American Corp., through its health
insurance and managed care subsidiaries, primarily serves the
growing Medicare population by providing Medicare Advantage and
Medicare supplement insurance products. Approximately 25% of the
over 65-year-old population in the United States is currently
enrolled in Medicare Advantage plans. The company is poised to
capture the opportunity to address the high cost of health care for
the remaining 75% of the Medicare population enrolled in
traditional fee-for-service Medicare and has joined with
primary-care provider groups in several applications to participate
in the Medicare Shared Savings Program through accountable care
organizations. UAM's operating segments include senior managed
care, traditional insurance, and corporate and other.
As of June 30, 2013,
four guru stakeholders hold UAM
. There is no recent insider trading to report.
As of June 30, 2013,
is the top Guru stakeholder with 7,702,936 shares of 9.57% of
shares outstanding after he increased his position by 0.06%. Perry
bought 4,504 shares at an average price of $9.07 for an 11.8% loss.
This holding represents 1.8% of his total managed assets.
Diamond Hill Capital
made a new buy in the second quarter of 253,570 shares at an
average price of $9.07 per share for a loss of 11.8%.
increased his position by 147.52% when he bought 42,206 shares at
an average price of $9.07 per share, taking a loss of 11.8%.
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