Should Investors Be Selling WebMD Health (NASDAQ:WBMD) Shares? RBC Capital Mkts Downgrades Stock

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WebMD Health (NASDAQ:WBMD) Receives a Downgrade

Stock research analysts at RBC Capital Mkts’s research division cut shares of WebMD Health (NASDAQ:WBMD) from a “Top Pick” to a “Outperform” rating today. Theses analysts currently have a target PPS of $55 on WBMD equating to a 15.04% upside.

From a total of 7 analysts covering WebMD Health (NASDAQ:WBMD) stock, 7 rate it a ”Buy”, 0 a “Sell”, and 2 a ”Hold”. This means that 78% of the ratings are positive. The highest target price is $60 while the lowest target price is $45. The mean of all analyst targets is $53.29 with a 13.99% above today’s ($47.81) stock price. WebMD Health was the topic of 5 analyst reports since August 3, 2015 according to the firm StockzIntelligence Inc. Stifel Nicolaus upgraded shares on November 4 to “Buy” rating.

The stock increased 0.67% or $0.32 during the last trading session, striking $47.81. Approximately shares of stock traded hands. WebMD Health Corp. (NASDAQ:WBMD) has risen 13.73% since May 5, 2015 and is uptrending. It has outperformed by 14.32% the S&P500.

The overall sentiment of institutions has decreased to 1.27 in Q2 2015. Its down 0.07, from 1.34 in 2015Q2. The ratio worsened, as 27 institutions have sold all the shares of WebMD Health Corp. that they owned while 39 funds have taken shares off the table. 30 funds have purchased shares for the first time while 54 added to their positions. These institutions now hold 24.99 million shares or 9.28% less than the 27.55 million shares they owned in 2015Q2.

The Fund Freshford Capital Management Llc currently is holding shares equating to 16.31% of its total portfolio in WebMD Health Corp. representing a total of 1.90 million shares. Another fund,Shannon River Fund Management Llc, is holding a total of 1.35 million shares equating to 9.99% of their holdings. Additionally, Destrier Capital Management Llc has a 391,000 share stake in WebMD Health Corp. which represents 4.58% of their total portfolio. The Fund, Kensico Capital Management Corp, based out of Connecticut, has also built up a stake in the stock, which represents a total of 4.29% of their total portfolio. Finally Glenhill Advisors Llc, a fund which is based in the state of New York reported a total holdings of 900,815 shares.

Insider activity is a very important aspect to track on any stock. Going back to August 11, 2015, shareholders of WebMD Health Corp. have witnessed 0 buys, and a total of 2 selling transactions equating to a net activity of approximately $1.77 million . Trotman Stanley S Jr sold 7,925 shares worth approximately $339,335. Keller Jerome C sold 33,000 shares worth approximately $1.43M.

WebMD Health Corp. is a provider of health information services. The company has a market cap of $1.78 billion. The Firm provides its services to consumers, physicians and other healthcare professionals, employers and health plans through its public and private online portals, mobile platforms and health-focused publications. It has 40.44 P/E ratio. The WebMD Health Network includes: www.WebMD.com, its primary public portal for clients and related mobile-optimized sites and mobile apps; www.Medscape.com, its primary public portal for physicians and other healthcare professionals and related mobile services; and other sites through which, it provides its branded health and wellness content, tools and services.

According to Zacks Investment Research, “WebMD announced today that is has signed an agreement to acquire Conceptis Technologies Inc., a Montreal-based provider of online and offline medical education and promotion aimed at physicians and other healthcare professionals. Conceptis has been successful in developing a strong online presence in the cardiology community and is highly respected for the depth and breadth of content contained on its flagship. With the combination of two of the leading cardiology channels on the Internet, Medscape Cardiology and www.theheart.org, WebMD is well positioned to further its lead and penetration in this high value segment of medical marketing.” Get a free copy of the Zacks research report on WebMD Health Corp. (WBMD).

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