Shares Of eHealth Continue Lower Amid Bank Of America Downgrade
Following a downgrade from Buy to Neutral by Bank of America analyst Nat Schindler, shares of eHealth (NASDAQ: EHTH) are trading more than seven percent lower in Friday's session.
Schindler noted that the company saw disappointing numbers from both individual family plans (IFP) applications and members during the second quarter. He added, "We understand the drastic drop in apps as only people with significant life events can apply for IFP plans outside of the open enrollment period, but the change in conversion to paying members was a surprise -- even for the company."
Along with the downgrade, Schindler has cut eHealth's price objective from $47 to $24. Although he believes there is potential upside in the stock, Schindler says it is difficult to predict with the constant flux of ACA regulations and impacts.
Shares traded recently at $19.02, down 8.12 percent.
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