Healthways, Inc. (HWAY): Point72 Discloses New 6.5% Position as Company Considers Strategic Options

For the third quarter of 2014, Healthways, Inc. (NASDAQ:HWAY) reported earnings that were in line with their own guidance and the estimates of analysts, with adjusted earnings per share remaining flat from the third quarter of 2013 at $0.08 per share. Adjusted net earnings meanwhile were up over 11% to $3.0 million from $2.7 million a year ago. Barrington Research has been the most recent analyst to rate stock, initiating coverage of it on January 22 with an ‘Outperform’ rating and $25 price target.

While the financial data and potential for growth is strong, it’s likely Point72 took interest in Healthways, Inc. (NASDAQ:HWAY) following the company’s press release and Form 8-K filed with the SEC on January 25, in which they disclosed that they were exploring strategic alternatives to increase shareholder value, and that the company’s board has retained the services of J.P. Morgan Securities LLC as its financial advisor to assist in evaluating such opportunities. While not explicitly stated in the press release, it’s possible one such option would be the sale of the company. Healthways, Inc. (NASDAQ:HWAY) did however warn that there is no guarantee that the board will end up taking any action, and that further information relating to their efforts would not be disclosed until such action is taken, or they complete their review without action.

Activity from the hedge funds we track was relatively bearish on Healthways in the third quarter, and rightfully so, as the stock slumped more than 10% between July 1 and November 28. However it’s up over 32% since then, and has been consistently achieving 52-week highs throughout the month of January. It is now attracting admiring gazes from some of the top investment minds in the business as a result, including Cohen’s. Other hedge funds we track with investments in Healthways, Inc. (NASDAQ:HWAY) include Conor Laughlin’s North Tide Capital with 3.85 million shares, Ross Margolies’ Stelliam Investment Management with 2.53 million shares, and Charles Clough’s Clough Capital Partners with 1.06 million shares.

Disclosure: None