eHealth stock surges 17% on CEO insider buying

Investing.com -- eHealth, Inc. (NASDAQ: EHTH) shares jumped 17% in pre-open trading Tuesday after Chief Executive Officer Derrick A. Duke purchased 187,969 shares of the company's common stock at $1.38 per share on Thursday. The transaction totaled $259,397, according to a Form 4 filing with the Securities and Exchange Commission.

Following the purchase, Duke directly owns 487,969 shares of eHealth, representing a significant stake in the company with a market capitalization of $38 million.

The insider purchase occurred as the stock trades near its 52-week low of $1.24, with shares down 85% over the past year.

Craig-Hallum analyst George Sutton noted he is encouraged to see the insider purchasing activity from the new CEO and that his vision for EHTH's participation in the broader insurance market was evident in the most recent call. However, Sutton continues to see challenges ahead in the Medicare Advantage market. Sutton rates shares Hold.

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