On July 17, Steven Cohen made a significant real-time increase in his holdings in WebMD Health Corporation (WBMD). Cohen increased his position by 2899% by purchasing a total of 2,510,592 shares. Cohen bought these shares at an average price of $32.41 per share. Since this increase the price per share has dropped by approximately 2%.
His most recent buy brings his total shares of WebMD to 2,597,194, representing 5.21% of the company’s shares outstanding. This increase makes Cohen the second largest guru shareholder WebMD following Carl Icahn who holds 13.43% of the company’s shares outstanding.
Steven Cohen’s holding history of WebMD as of March 31:
WebMD is a provider of health information services, serving consumers, physicians, healthcare professionals, employers and health plans through their public and private online portals, mobile platforms and health-focused publications.
WebMD’s historical price, revenue and net income:
On July 12, the company released its preliminary second quarter results which report that for the quarter WebMD expects:
· Revenue to be between $124 and $125 million, an increase of 10% to 11% over second quarter 2012.
· EBITDA to be approximately $29 million, or approximately 23% of revenue, an increase of 104% from the prior year period.
· Net income to be $3 million, or $0.05 per diluted share.
The company also notes that as of June 30, WebMD had approximately $1 billion in cash and cash equivalents. Also the second quarter, WebMD reached an average 125.5 million unique users per month and total traffic of 2.64 billion page views for the quarter, representing increases of 17% and 6%, respectively.
WebMD is set to release its full second quarter financial results on July 31.
The company’s gross margin has been in long-term decline with an average rate of decline per year of 2.4%. WebMD’s P/E ratio is currently sitting at a five-year high.
WebMD has a market cap of $1.61 billion. Its shares are currently trading at $31.50 with a P/E ratio of 737.00, a P/S ratio of 3.30 and a P/B ratio of 2.90.