Elevance Health, Inc. (ELV)

The past six months have seen several events impacting Elevance Health's stock price. The company's stock was down 7.56% over the past 30 days and 13.19% over the past 12 months as of February 6, 2026. In January 2026, Elevance Health reported fourth-quarter 2025 results, with adjusted diluted EPS exceeding forecasts, initially leading to a stock surge, but revenue slightly missed projections and the 2026 outlook disappointed investors, contributing to a selloff in managed care stocks. A proposed modest Medicare Advantage rate increase from the government added to investor concern. Persistent medical cost pressures and adverse acuity shifts in the Medicaid business, along with a decline in Medicaid membership, have negatively impacted margins. The individual exchange business is expected to see improved margins in 2026 due to premium increases. Elevance Health is refocusing on balance sheet strength, tighter cost control, and share repurchases, reducing emphasis on mergers and acquisitions.

Elevance Health experiences demand seasonality in its earnings. The company anticipates earning approximately two-thirds of its adjusted EPS in the first half of 2026, with 65% of that concentrated in the first quarter. This seasonality is influenced by a favorable workday calendar in the first quarter, a shifted earnings cadence for Medicare drug plans, and a shift in membership mix.

Elevance Health, Inc. is a prominent American health insurance company operating as a managed healthcare and insurance provider. Formerly known as Anthem, Inc., it is the largest for-profit managed health care company within the Blue Cross Blue Shield Association. Its core business involves offering health plans and services, including medical, pharmaceutical, dental, behavioral health, long-term care, and disability plans, serving individual, employer group, Medicaid, and Medicare markets. As of December 31, 2025, Elevance Health served approximately 45.2 million medical members through its affiliated health plans. Key affiliated companies and brands include Anthem Blue Cross and Blue Shield, Anthem Blue Cross in California, Wellpoint, Carelon, Amerigroup, UniCare, and National Government Services. The company also has a diversified health services arm, Carelon, which includes CarelonRx and Carelon Services.

Headquartered in Indianapolis, Indiana, Elevance Health primarily operates within the United States. It holds exclusive rights as the Blue Cross licensee in 14 states, including California, Colorado, Connecticut, Georgia, Indiana, Kentucky, Maine, Missouri, Nevada, New Hampshire, New York, Ohio, Virginia, and Wisconsin. Beyond these states, it also operates under brands such as Wellpoint, Carelon, MMM, and Simply Healthcare. Its BPO/Shared Services subsidiary, Carelon Global Solutions, has offshore sites in India, Puerto Rico, and the Philippines, in addition to the United States. In 2025, Elevance Health expanded its individual and family Affordable Care Act (ACA) plans in Florida, Maryland, and Texas under the WellPoint brand.

Elevance Health maintains a strong brand and market presence as a leading health insurer. Its exclusive rights to market Blue Cross Blue Shield (BCBS) products in its key markets provide a competitive advantage. The company is committed to improving health outcomes, lowering costs, and simplifying experiences, focusing on an integrated whole-health approach. Potential threats to reputation include cybersecurity risks and challenges in the Medicaid and Medicare Advantage segments.

Elevance Health, Inc. has significant institutional ownership, with 89.24% of its stock held by institutional investors and 2.72% held by insider shareholders. Major institutional owners include Vanguard Group Inc, BlackRock, Inc., State Street Corp, Wellington Management Group Llp, Price T Rowe Associates Inc /md/, Sanders Capital, LLC, Geode Capital Management, Llc, and Artisan Partners Limited Partnership. Insider transaction data indicates various executives hold shares, with some recent selling activity by individuals like Ryan R. Craig and Mark Kaye, and buying activity by Gail Boudreaux and Susan D. Devore in 2025.