Healthways Surges Over 10% Following UBS Upgrade, Insiders' Share Acquisitions

Shares of Healthways, Inc. HWAY were trading up over 11 percent midday Tuesday following an upgrade from UBS Global Research and four insider transactions over the past two trading days.

After the market close on November 1, Healthways reported Q3 earnings, falling short of analyst expectations (adjusted EPS of $0.30 vs. $0.52 estimate) and slightly beating sales ($125 million vs. $124.7 million estimate.)

After reporting, the company’s shares fell more than 22 percent over the next two trading days before experiencing insider buys from the company CEO and two directors.

• November 4: Healthways CEO Tramuto Donato bought 33,175 shares at $20.25/share, increasing his stake by around $671,793.
• November 7: Donato bought 5,060 shares at $19.95/share, increasing his stake by an additional $100,947.
• November 7: Director Lee Shapiro bought 1,266 shares at $19.53/share, increasing his stake by $24,724.
• November 7: Director Robert Greczyn bought 5,000 shares at $19.55/share, increasing his total stake by $97,750.

On Tuesday, UBS Global Research Analyst A. J. Rice upgraded Healthways from Sell to Buy, while increasing his 12-month price target from $22.50 to $24. Following the upgrade, shares were trading up over 11 percent in early trading.