Investors have been feeling bearish toward health insurers reporting earnings — both Wellpoint (WLP) and UnitedHealth (UNH) fell after their reports. But Coventry Health Care (CVH) is defying the trend this morning, rising more than 7%.
The insurer posted 68 cents of EPS, 5 cents ahead of expectations. The company saw enrollment in its Medicare Advantage plans jump 16% year-over-year, and has begun fixing its Medicaid plan in Kentucky, which struggled in the first quarter.
Coventry recently attracted the interest of an important suitor. Activist investor David Einhorn said he had amassed a “substantial” position in the insurer as he believes the sector has sold off too dramatically in anticipation of the implementation of Obamacare. Einhorn is also investing in Cigna (CI).
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