Investors appear to have either warmed a bit to Healthways' lowered profit and revenue forecast or think this morning's reaction to the report — the stock was off more than 20 percent early on — was simply too extreme. By about 1 p.m., the stock (Ticker: HWAY) appeared to be finding surer footing around $10.50, down about 5 percent from Thursday's close. The steady climb during the day came despite Michael Petusky at Noble Financial lowering his rating from 'buy' to 'hold.' Petusky's price target for the stock is $12.
Franklin-based well-being services provider Healthways and CareFirst, the Maryland/D.C./Northern Virginia BlueCross BlueShield licensee, had a couple of news items to share Wednesday morning. First, the companies said they have extended their partnership to provide various disease management services to federal employees and their dependents. And secondly, they said their work together on CareFirst's patient-centered medical home program will grow and be extended by three years through 2016.
"This program focuses on the roughly 10% of CareFirst's membership who account for nearly 50 to 60 percent of all our claims cost." Burrell continued, "Expanding our work with Healthways is an important element of building upon the success we have already experienced in the first year of operating our PCMH model."
Insurance giant WellPoint has extended its contract to market Healthways' SilverSneakers senior fitness program to a number of its plans. News of the extension, which gives Healthways access to about 700,000 people, comes about seven weeks after WellPoint said the two companies had expanded their collaboration on other wellness projects.
SEE ALSO: Word of Healthways' other recent SilverSneakers wins