Elevance Health Rises on High-Volume Day as Sector Struggles with Cost Pressures and Insider Selling

Elevance Health (ELV) rose 0.67% on August 13, with a trading volume of $700 million, a 56.84% increase from the prior day. The stock remains under pressure amid broader sector challenges, including rising medical cost trends and slower Medicaid rate recovery, as highlighted by industry analysts. Recent analyst activity includes Mizuho maintaining a “Buy” rating with a $342 price target and UBS reaffirming confidence in ELV’s earnings stability and growth potential. However, insider selling of $6.7 million in shares has raised cautionary signals among investors.

ELV’s year-to-date performance reflects a 19.5% decline, lagging the S&P 500’s 9.95% gain. Analysts attribute the underperformance to persistent cost inflation and utilization pressures in Medicare Advantage plans. While UBS and Mizuho emphasize long-term resilience, recent bearish sentiment is evident in Baird’s reduced price target and Zacks’ designation of ELV as the “Bear of the Day.” The stock’s overnight trading activity on the Blue Ocean ATS also saw a modest 0.47% gain, indicating limited short-term volatility.

The strategy of buying the top 500 stocks by daily trading volume and holding them for one day from 2022 to 2025 delivered a compound annual growth rate of 6.98%. However, the approach faced a maximum drawdown of 15.46% during the backtest period, with a significant decline in mid-2023 underscoring the need for risk management in volatile markets. ELV’s performance within this framework remains subject to broader market dynamics and sector-specific headwinds.