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Insiders Are Buying Envision Healthcare Holdings

September 15, 2013 | About:
Markus Aarnio

Markus Aarnio

1 followers
One healthcare service provider has seen intensive insider buying during the last 30 days. Intensive insider buying can be defined by the following three criteria:

The stock is purchased by three or more insiders within one month.

The stock is sold by no insiders in the month of intensive purchasing.

At least two purchasers increase their holdings by more than 10%.

Envision Healthcare Holdings (EVHC) provides healthcare-related services to consumers, hospitals, healthcare systems, health plans, and government entities in the United States.

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Insider Buying During the Last 30 Days

  • Edward Van Horne purchased 500 shares on Aug. 19 pursuant to the initial public offering. Edward Van Horne currently holds 11,399 shares or less than 0.1% of the company. Edward Van Horne is president of AMR. Edward Van Horne increased his holdings by 4.6% in August.
  • Leonard Riggs purchased 44,000 shares on Aug. 19 pursuant to the initial public offering. Leonard Riggs currently controls 213,185 shares or 0.1% of the company. Leonard Riggs serves as a director of the company. Leonard Riggs increased his holdings by 26.0% in August.
  • Kimberly Norman purchased 1,000 shares on Aug. 19 pursuant to the initial public offering. Kimberly Norman currently holds 1,000 shares or less than 0.1% of the company. Kimberly Norman is senior vice president of human resources for Envision Healthcare. Kimberly Norman increased her holdings from zero shares to 1,000 shares in August.
  • Steven Murphy purchased 5,000 shares on Aug. 19 pursuant to the initial public offering. Steven Murphy currently holds 18,950 shares or less than 0.1% of the company. Steven Murphy is senior vice president of government and national services for Envision Healthcare. Steven Murphy increased his holdings by 35.8% in August.
Insider Buying by Calendar Month

Here is a table of Envision Healthcare's insider-trading activity by calendar month.

MonthInsider buying / sharesInsider selling / shares
August 201350,5000


There have been 50,500 shares purchased and there have been zero shares sold by insiders this year. Envision Healthcare had its IPO in August.

Financials

Envision Healthcare reported the second-quarter financial results on July 23 with the following highlights:

Revenue$1.7 billion
Net income$16.6 million
Cash$36.8 million
Debt$2.3 billion


Envision Healthcare sold 42,000,000 shares at $23 per share at its initial public offering on August 13.

Outlook

Due to the growing complexity of the healthcare delivery system, healthcare facilities and communities are increasingly turning to leading outsourced medical services providers that offer comprehensive solutions. Healthcare facilities continue to outsource as a result of increasing cost pressures, difficulty in recruiting physicians and the need to improve operational efficiency. Communities increasingly outsource medical transportation services due to cost pressures, service issues and the challenge of meeting peak emergency demands in a cost-effective manner while delivering optimal clinical outcomes. Envision Healthcare believes that large, national providers of outsourced medical services will continue to benefit from these outsourcing trends and gain market share by demonstrating the ability to improve productivity, lower costs and enhance quality of care.

Competition

Envision Healthcare's competitors include Team Health Holdings (TMH). Here is a table comparing these two companies.



CompanyEVHCTMH
Market Cap:4.96B2.55B
Employees:16,8688,500
Qtrly Rev Growth (yoy):0.170.14
Revenue:6.28B2.24B
Gross Margin:0.610.19
EBITDA:431.98M221.85M
Operating Margin:0.040.08
Net Income:33.30M71.74M
EPS:0.251.03
P/E:114.9635.65
PEG (5 yr expected):N/A1.39
P/S:0.791.16


Envision Healthcare is trading at a lower P/S ratio than Team Health Holdings. Team Health Holdings has seen four insider sell transactions this year.

Conclusion

There have been four different insiders buying Envision Healthcare and there have not been any insiders selling Envision Healthcare during the last 30 days. Three of these four insiders increased their holdings by more than 10%.

Envision Healthcare started trading on August 14 after the IPO. The insiders paid $23 for their shares and the stock is currently trading at $28.51. I believe the stock could be a good pick at potential pullbacks towards the $23 IPO price.

Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.

About the author:

Markus Aarnio
I have 15 years of investing experience. I have traded stocks, commodities and Forex markets.

Rating: 1.0/5 (1 vote)

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