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Is eHealth, Inc. (EHTH) A Good Stock To Buy?

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The worries about the election and the ongoing uncertainty about the path of interest-rate increases have been keeping investors on the sidelines. Of course, most hedge funds and other asset managers have been underperforming main stock market indices since the middle of 2015. Interestingly though, smaller-cap stocks registered their best performance relative to the large-capitalization stocks since the end of the June quarter, suggesting that this may be the best time to take a cue from their stock picks. In fact, the Russell 2000 Index gained more than 15% since the beginning of the third quarter, while the Standard and Poor’s 500 benchmark returned less than 6%. This article will lay out and discuss the hedge fund and institutional investor sentiment towards eHealth, Inc. (NASDAQ:EHTH).

eHealth, Inc. (NASDAQ:EHTH) shares didn’t see a lot of action during the third quarter. Overall, hedge fund sentiment was unchanged. The stock was in 13 hedge funds’ portfolios at the end of September. At the end of this article we will also compare EHTH to other stocks including MBT Financial Corp. (NASDAQ:MBTF), Home Bancorp, Inc. (NASDAQ:HBCP), and Summit Financial Group, Inc. (NASDAQ:SMMF) to get a better sense of its popularity.

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What have hedge funds been doing with eHealth, Inc. (NASDAQ:EHTH)?

At the end of the third quarter, a total of 13 of the hedge funds tracked by Insider Monkey held long positions in this stock, unchanged from one quarter earlier. The graph below displays the number of hedge funds with bullish position in EHTH over the last 5 quarters. With hedge funds’ positions undergoing their usual ebb and flow, there exists a few notable hedge fund managers who were upping their holdings meaningfully (or already accumulated large positions).

HedgeFundSentimentChart

Of the funds tracked by Insider Monkey, James E. Flynn’s Deerfield Management has the number one position in eHealth, Inc. (NASDAQ:EHTH), worth close to $29.6 million, comprising 1.4% of its total 13F portfolio. Sitting at the No. 2 spot is OrbiMed Advisors, led by Samuel Isaly, holding a $20.3 million position. Some other peers that are bullish include Mitchell Blutt’s Consonance Capital Management, Renaissance Technologies, one of the largest hedge funds in the world, and David Brown’s Hawk Ridge Management. We should note that none of these hedge funds are among our list of the 100 best performing hedge funds which is based on the performance of their 13F long positions in non-microcap stocks.

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