In the health care facilities complex, insiders have snapped up a decent amount of shares in LHC Group (LHCG), which provides post-acute health care services to patients through its home nursing agencies, hospices and long-term acute care hospitals. Insiders have spotted some deep value here since this stock is off by over 40% in the last six months.
LHC Group has a market cap of $252.40 million and an enterprise value of $279.29 million. This stock trades at a forward price-to-earnings of 9.45. Their estimated growth rate for this year is -36.9% and for next year it's pegged at -16%. This is not a cash-rich company, since the total cash position on their balance sheet is $11.13 million and their total debt is $54 million.A beneficial owner just bought 22,000 shares, or around $284,000 worth of stock, at $12.92 per share. This same beneficial owner has also bought over $2.6 million worth of stock since November 2011. From a technical standpoint, LHCG is currently trading below both its 50-day and 200-day moving averages, which is bearish. This stock recently found some big buying support at around $12.34 to $12.53 a share, which could mean the stock is putting in a near-term bottom. If you're bullish on LHCG, I would look to be a buyer off this stock if it can manage to sustain a move and close back above its 50-day moving average of $13.88 with volume. Look for volume that's near or above its three-month average action of 165,475 shares. You could also buy this stock off any weakness with a mental stop just below $12.34. I would then add to any long positions if LHCG takes out some near-term overhead resistance levels at $14.49 to $14.79 with volume.
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