Universal American Corp. Downgraded to “Neutral” at Wedbush (UAM)

Universal American Corp. (NYSE:UAM) was downgraded by research analysts at Wedbush from an “outperform” rating to a “neutral” rating in a report released on Monday, TheFlyOnTheWall.com reports. They currently have a $10.00 price objective on the stock, down from their previous price objective of $11.00. Wedbush’s target price points to a potential upside of 1.83% from the stock’s previous close.

The analysts wrote, “We are downgrading UAM to NEUTRAL from OUTPERFORM; while we continue to believe UAM’s exposure to Medicare will generate meaningful long term growth we are less optimistic on UAM’s potential to outgrow peers in 2014 and 2015. We’re lowering 2013E to $0.31 from $0.67 on higher MLR (medical loss ratio) assumptions, lowering 2014E to $0.40 from $0.84 on lower enrollment and higher SG&A assumptions, and initiating a 2015E of $0.57 vs. consensus $0.74 which assumes 11% MA (Medicare Advantage) member growth.”

Universal American Corp. (NYSE:UAM) traded down 0.66% on Monday, hitting $9.755. Universal American Corp. has a 52-week low of $7.68 and a 52-week high of $11.13. The stock’s 50-day moving average is currently $9.93. The company’s market cap is $827.3 million.

Universal American Corp. (NYSE:UAM) last posted its quarterly earnings results on Thursday, August 1st. The company reported ($0.02) EPS for the quarter, missing the Thomson Reuters consensus estimate of $0.15 by $0.17. The company had revenue of $534.00 million for the quarter, compared to the consensus estimate of $538.22 million. During the same quarter in the prior year, the company posted $0.09 earnings per share. The company’s quarterly revenue was down 1.5% on a year-over-year basis. Analysts expect that Universal American Corp. will post $0.63 EPS for the current fiscal year.

Separately, analysts at Raymond James downgraded shares of Universal American Corp. from a “market perform” rating to an “underperform” rating in a research note to investors on Tuesday, July 16th.

Three research analysts have rated the stock with a sell rating and three have issued a hold rating to the company. The company has a consensus rating of “Hold” and a consensus price target of $9.38.

The company also recently announced a special dividend, which is scheduled for Monday, August 19th. Shareholders of record on Monday, August 12th will be paid a dividend of $1.60 per share. The ex-dividend date is Thursday, August 8th.

Universal American Corp., through its health insurance and managed care subsidiaries, primarily serves the growing Medicare population by providing Medicare Advantage products.