Steven Cohen Buys Stake in Company Looking For Buyer

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Jan 29, 2015
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Steven Cohen (Trades, Portfolio)’s fund Point72 picked up its second large holding of the year, this time of Healthways Inc. (HWAY, Financial). Cohen purchased 2,316,700 shares of the company on Jan. 26, equating to 6.55% of the company, according to GuruFocus Real Time Picks.

On Jan. 22, Cohen reported a 5.89% stake in drug company Five Prime Therapeutics Inc. (FPRX, Financial).

Healthways is a wellness company that tailors comprehensive health plans for clients. The company’s shares have risen more than 28% year to date, hitting a 52-week high of $22.25 on Jan. 26, the day Cohen purchased. Shares have since declined to $20.69 at close Wednesday.

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A day prior, on Jan. 25, Healthways announced that it was “exploring strategic alternatives to enhance shareholder value.”

For the third quarter of 2014, Healthways announced revenue of $185.7 million, an 11.4% increase from $166.6 million in the same quarter the previous year. It was the company’s second consecutive quarter of double-digit year-over-year revenue growth. Net income was $2.0 million, or $0.05 per share, compared to $1.8 million, or $0.05 per share, for the same periods.

Cohen has held shares of Healthways in the past, closing out a small position of 134,100 shares in the first quarter of 2014.

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Healthways has a P/B ratio of 2.5 and P/S ratio of 1.1, near a five-year high.

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