Robert Hable 22 June 2020

Change Healthcare (CHNG: US)

12-month performance: N/A
Insider activity: Bullish
Buying pattern: Large purchase from CFO
Recent news: Solid Q4 results

Change Healthcare is a US-based company that focuses on healthcare technology. Through its end-to-end platform, it offers a wide range of solutions including revenue cycle management, electronic payment, and data analysis solutions. The company is listed on the NASDAQ Global Select Market and currently has a market capitalisation of $3.7 billion.

Change Healthcare recently issued a solid set of Q4 results. For the quarter, solutions revenue was $797.2 million, up from $778.4 million in Q4 last year, while adjusted net income was $133.7 million, up from $125.8 million in the same period last year. “Change Healthcare delivered strong performance in our first year as a public company, achieving our desired financial and operational goals, executing on our transformation initiatives, and strengthening our platform for future growth. In fiscal 2020, we delivered underlying growth across all three segments, expanded margins, and delivered strong free cash flow,” said Neil de Crescenzo, President and CEO.

CHNG-US-chartSource: 2iQ Research

What looks interesting to us here is that CFO Fredrik Eliasson has purchased a large number of CHNG shares this month. On 10 June, the insider purchased 100,000 shares at a price of $12.00 per share, spending a total of $1.2 million on stock. This purchase, which was the largest insider purchase since the company’s IPO in July last year, boosted Eliasson’s holding by 250%. We see this substantial insider purchase as a bullish signal. 

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