Taking Some Profits in a Healthcare Stock and Downgrading Its Rating
As we monitor the presidential campaign, indications point to a more pragmatic approach to Medicare.
You've reached your free article limit
You've read 0 of 1 free Pro articles.
| Symbol | Transaction Type | # Shares Traded | Recent Price $ | Shares Owned After Trade | % Portfolio |
|---|---|---|---|---|---|
ELV | Sell | 45 | 551.25 | 230 | 2.8 |
After you receive this Alert, we will sell 45 shares of Elevance Health ELV at or near $551.25. Following the trade the portfolio will own 23 ELV shares, roughly 2.8% of the portfolio.
Over the last several days, we’ve cautioned members that we would keep close tabs on portfolio positions that are encroaching on our price targets. Following an almost 10% run-up over the last month, Elevance shares are approaching not only our $560 target, but they could reach overbought territory if their rise continues. Because of this we are locking in a portion of recent gains as well as larger ones that trace back to our average cost basis near $466.
Due to the stock's proximity to our price target, we will also downgrade Elevance to a Three rating. In keeping with this "Holding Pattern" status, we will keep a close watch on developments in the presidential election and what they could mean for healthcare and Medicare. It’s been noticed that Democratic presidential candidate Kamala Harris is no longer championing “Medicare for All” and the campaign has signaled a more pragmatic approach is likely.
There’s little denying the upswing in ELV mirrors Harris’ rise in the polls, and that could mean the shares are getting ahead of themselves. As we move closer to the election and the campaign conversation expands, we’ll continue to listen to what’s said about healthcare and Medicare. Should ELV continue to trend higher into that conversation we may milk the position further.
More Pro Portfolio:
- We're Drinking Up More Shares of This Coffee Chain
- Weekly Roundup: Powell’s 'Adjustment' Drives the Market and Portfolio Higher
- Cash-Strapped Consumers, Mortgage Rate Lows: The Latest Signals Informing Our Strategy
(Please note that we are looking to execute these trades at or near the share price mentioned above. Once the trade is completed, subscribers can see the trade's executed price here. Be sure to toggle the chart to sort by Purchase Date.)
At the time of publication, TheStreet Pro Portfolio was long ELV.
