Samuel Isaly Raises Stake in WellCare Health Plans by 150%

Company has grown revenue and free cash flow

Author's Avatar
Apr 27, 2016
Article's Main Image

Guru Samuel Isaly is an Ohio native and a Princeton University graduate who has 48 years of investment experience. Isaly founded OrbiMed Advisors, an Eaton Vance investment adviser in July 1989. Since then, Isaly has been managing and making investments that focus on long term growth and are primarily made within the healthcare industry.

In the first quarter, Isaly increased his stake in Wellcare Health Plans Inc. (WCG, Financial) by 150%.

02May2017170156.png

WellCare Health Plans focuses exclusively on providing government-sponsored managed care services, primarily through Medicaid, Medicare Advantage and Medicare Prescription Drug Plans. The company served approximately 3.8 million members nationwide as of Dec. 15, 2015. WellCare is a Fortune 500 company based in Tampa, Florida that employs more than 6,900 associates nationwide.

WellCare Health Plans has a market cap of $4.16 billion, a P/E ratio of 35.26, an enterprise value of $2.76 billion and a P/B ratio of 2.42.

Below is a Peter Lynch Chart for WellCare Health Plans Inc.

02May2017170156.png

According to GuruFocus, WellCare Health Plans has a Financial Strength rating of 8/10 with a cash to debt ratio of 2.15, ranking them above 64% of the companies in the industry. Isaly most likely increased his stake in WellCare Health Plans because the company has reported excellent EBITDA growth, operating income growth, as well as free cash flow during the previous 12 months. The company has also increased its revenue per share at an average rate of 21% annually over the previous 10 years.

Cheers to your investment success.

Disclaimer: Author does not own any shares of this stock.