Magellan Health Services Expects Profits To Fall, Shares Fall 7% (MGLN)

Shares of Magellan Health Services, Inc. MGLN are trading down 7.1% at $45.51 per share during the Monday afternoon trading session. The company announced on Monday morning that it expects its profits will decline in 2011. Chief financial officer Jonathan N. Rubin said, “Magellan has a strong financial base, with significant cash, no long term debt, and a history of cash flow to support our continued strategy of profitable growth and optimal return to shareholders. While we anticipate a modest decline in segment profit in 2011 due to contract terminations and other factors, we have considerable growth opportunities and the ability to efficiently deploy capital and other resources to invest for the future.” The day's range for shares of Magellan Health Services, Inc has been between $44.77 and $47.61 per share. The average price target of analysts who cover Magellan Health Services, Inc. (MGLN) is $56.80 per share. Volume of 1.5 million shares is already more than 5 times the daily average volume of 285,000 shares. Magellan Health Services, Inc is a leading specialty health care management organization with expertise in managing behavioral health, radiology and specialty pharmaceuticals, as well as public sector pharmacy benefits programs Read more from Benzinga's Company news.