Catamaran (CTRX) Shares Surge 25%

Catamaran Corporation (CTRX) shares are trading higher by nearly 25% to $60.22 after health insurer UnitedHealth Group Inc (UNH) agreed to buy the pharmacy benefit manager for $12.8 billion. UnitedHealth’s offer of $61.50 per share represents a premium of 27% to CTRX’s Friday pps close on the Nasdaq. The transaction is expected to close in Q4/15 and to add $0.30/shr to UnitedHealth’s net earnings in fiscal 2016. Approximately 10 million shares have already changed hands, compared to the stock’s average daily volume of 1.82 million shares.

Fundamentally, CTRX shows the following financial data:

  • $1.01 billion in cash in most recent quarter
  • $9.32 billion t-12 total assets
  • $5.28 billion total equity
  • $21.58 billion t-12 revenue
  • $317.29 million annual net income
  • $512.1 million free cash flow

On valuation measures, Catamaran Corp. shares have a T-12 price/sales ratio of 0.46 and a price/book for the same period of 1.90. EPS is $1.53. The name has a market cap of $12.50 billion and a median Wall Street price target of $71.29 with a high target of $82.41. Currently there are 19 analysts that rate CTRX a ‘Buy’, 7 rate it a ‘Hold’. 1 analyst rates it a ‘Sell’.

In terms of share statistics, Catamaran Corp. has a total of 204.70 million shares outstanding with 0.21% held by insiders and 90.50% held by institutions. The stock’s short interest currently stands at 1.46%, bringing the total number of shares sold short to 3.03 million.

Shares of the Schaumburg Illinois-based company are up 7.43% year-over-year ; down 6.63% year-to-date.

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