EHealth CEO ups stake to 703K shares, COO to resign

In an interview on Mad Money, eHealth (NASDAQ:EHTH) CEO Scott Flanders said he bought 50K shares in the health insurance marketplace operator because “It was a great value. I couldn’t resist it. Last time I bought shares they went up more than 10 times so I’m obviously optimistic.” The purchase boosted his stake to 703K shares or 8%.

Shares are down nearly 50% from Q1 highs when the stock briefly touched ~$150 on three occasions. The stock sold off in early June on a bearish Muddy Waters report and plunged in late July after it posted Q2 results that beat consensus with a 35% jump in revenues but operations consumed over $21M, 85% worse than a year ago.

Mr. Flanders may be one of the few bargain hunters taking action. Many investors appear to be on the sidelines over concerns with churn in Medicare Advantage customers which spiked to 42% in Q2 despite substantial investments in marketing/advertising and customer care and enrollment, together representing 68% of revenue.

After the close today, the company disclosed that COO David Francis will resign effective on August 31.

https://seekingalpha.com/news/3606905-ehealth-chief-bullish-on-future-increases-stake-to-703k-shares