Magellan Health Inc. (NASDAQ:MGLN) previous close was $70.55 while the outstanding shares total 24.73M. The firm has a beta of 1.21, a 12-month trailing P/E ratio of 24.10. MGLN’s shares traded higher over the last trading session, gaining 1.02% on 06/25/20. The shares fell to a low of $69.69 before closing at $71.27. Intraday shares traded counted 0.25 million, which was -15.88% lower than its 30-day average trading volume of 212.74K. The stock’s Relative Strength Index (RSI) is 53.82, with weekly volatility at 3.64% and ATR at 2.89. The MGLN stock’s 52-week price range has touched low of $30.60 and a $81.04 high.
Investors have identified the Healthcare Plans company Magellan Health Inc. as an interesting stock but before investments are made there, an in-depth look at its trading activities will have to be conducted. The share is trading with a market value of around $1.81 billion, the company now has both obstacles and catalysts that affect them and they came from their mode of operations. With the company affected by events currently, it is a perfect time to analyze the numbers behind the firm in order to come up with a rather realistic picture of what this stock is.
Magellan Health Inc. (MGLN) Fundamentals that are to be considered.
When analyzing a stock, the first fundamental thing to take into account is the balance sheet. How healthy the balance sheet of a company is will determine if the company will be able to carry out all its financial and non-financial obligations and also keep the faith of its investors. For MGLN, the company has in raw cash 383.96 million on their books with 84.4 million currently as liabilities. How the trend is over time is what investors should be concerned about. The company has a healthy balance sheet as their debt profile has been on an incline. In terms of their assets, the company currently has 1807024000 million total, with 1030182000 million as their total liabilities.
MGLN were able to record 16.01 million as free cash flow during the third quarter of the year, this saw their quarterly net cash flow reduce by 58.71 million. In cash movements, the company had a total of 31.73 million as operating cash flow.
Potential earnings growth for Magellan Health Inc. (MGLN)
In order to determine the future investment potential for this stock, we will have to analyze key trends that affect it. During the third quarter of the year, Magellan Health Inc. recorded a total of 1.79 billion in revenue. This figure implies that they witnessed a quarterly year/year change in their earnings with 3.06% coming in sequential stages and their sales for the third quarter reducing by -0.47%.
What matters though is how it ends. When the core data for the company is broken down, then the stock sounds interesting. The company spent 1.73 billion trying to sell their products during the last quarter, with the result yielding a gross income of 68.79 million. This allows shareholders to hold on to 24.73M with the revenue now reading 0.74 cents per share. This is a figure that is close to analyst’s prediction for their fourth quarter (0.68 cents a share).
Having a look at the company’s valuation, the company is expected to record 3.73 total earnings per share during the next fiscal year. It is very important though to remember that the importance of trend far outweighs that of outlook. This analysis has been great and getting further updates on MGLN sounds very interesting.
Is the stock of MGLN attractive?
In related news, SVP & Controller, WEST JEFFREY N sold 1,415 shares of the company’s stock in a transaction that recorded on Jun 08. The sale was performed at an average price of 78.50, for a total value of 111,078. As the sale deal closes, the President and COO, MURRAY JAMES E now bought 4,500 shares of the company’s stock, valued at 304,317. Also, SVP & Controller, WEST JEFFREY N sold 200 shares of the company’s stock in a deal that was recorded on Jan 02. The shares were price at an average price of 78.53 per share, with a total market value of 15,706. Following this completion of acquisition, the SVP & Controller, WEST JEFFREY N now holds 104 shares of the company’s stock, valued at 8,164. In the last 6 months, insiders have changed their ownership in shares of company stock by 0.40%.
2 out of 3 analysts covering the stock have rated it a Buy, while 1 have maintained a Hold recommendation on Magellan Health Inc.. 0 analysts has assigned a Sell rating on the MGLN stock. The 12-month mean consensus price target for the company’s shares has been set at $79.00.