TAMPA — After a sharp drop in its stock price in August and September, Health Insurance Innovations on Monday announced strong revenue and net income gains in preliminary numbers for its third quarter of the year. The company also announced a $50 million stock buyback over the next two years meant to bolster its struggling shares.
The company, which partners with insurance companies to develop health insurance products, saw its stock price drop from nearly $35 in latter August to $14.50 by late September after reports of investigations into its marketing practices and market pressure from short sellers.
On Monday, Health Insurance Innovations reported preliminary revenues for the third quarter would be in the range of $62.3 million to $63.3 million. That's an increase of 35 to 37 percent over the comparable prior year period. The company also expects to report net income to rise between 8 and 18 percent in the same period in the range of $5.5 million to $6 million.
Shares were up 11.6 percent in trading Monday, closing at $21.10 on the news.
CEO Gavin Southwell, in a statement, said the new share repurchase program "underscores our confidence in our business strategy, financial performance, and the long-term prospects of our company while also allowing us the financial flexibility to continue to invest in our business."
The company, which had just over 170 employees at the start of this year, formally plans to report financial results for its third quarter on Nov. 1.