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RS Investments Adds - Is eHealth Healthy?
Posted by: Sally Jones (IP Logged)
Date: March 12, 2013 05:40PM

RS Investment Management continues trading with a long string of adds since Dec. 31, 2013. The company had reduced its eHealth Inc. (EHTH) shares by 20.1% back in December 2012 after a fourth quarter loss of 25.5%, but bought them back with an add of 22.55% on Feb. 28, 2013, for a total of current shares at 2,895,711. The current price of EHTH is $17.5 per share, with a change from average of 13%. eHealth Inc. is an Internet-based insurance agency offering a wide range of medical and life insurance products for individuals, families, and small businesses in the U.S.

Here's a detailed analysis of EHTH.

Even though the company has shown a 7.1% revenue growth over the past 10 years, and 4.7% over the last 12 months, GuruFocus performed a thorough financial and performance checkup on eHealth Inc. and listed these warning signs: The revenue growth of eHealth Inc. has slowed down over the past 12 months, and its operating margin has been in a five-year decline. The average rate of decline per year is 4.7%. However, there are positive signs that EHTH shows financial strength, has a strong Altman Z-Score of 10.5, and has no debt. Other good signs are that the EHTH price ($16.62) is close to a one-year low, and the P/B ratio (2.05) is also close to a one-year low of 1.86.

Have a look at EHTH insider trades.

With a market cap of $358.1 million, eHealth Inc. has a P/E of 50.4, a P/B of 2.1 and a P/S of 2.4. See a comparative margin of safety calculated for EHTH, when compared to companies with the same growth rate and discount rate.

Here’s RS Investment Management’s holding history of EHTH.

Here’s RS Investment Managements' holding history of EHTH.

Based in San Francisco, RS Investments has a portfolio of 284 stocks, with a total value of $11.9 billion, and a quarter-by-quarter turnover of 18%. RS Investment Management’s portfolio shows investment sectors of financial services, energy, basic materials, technology, healthcare, consumer defensive, consumer cyclical, industrials, communication, utilities and real estate. The average annual return of RS Partners Fund has been 5.4% per year over the last 10 years.

Here’s a summary of RS Investment’s top buys, top sells and top holdings:

GuruFocus "Real Time Picks" reports the stock purchases and sales that Gurus have made within the prior 2 weeks. The report time lag can be as short as 2 days after the date of the transaction. This feature is for Premium Members only. If you are not a Premium Member, we invite you for a 7-day Free Trial.

Guru Discussed: RS Investments: Current Portfolio, Stock Picks
Stocks Discussed: EHTH,
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