TAMPA - Shares of WellCare Health Plans Inc. were among the market's big gainers Monday after the Tampa-based company announced it received renewal of federal contracts in five states, including Florida, along with permission to expand into hundreds of counties in those states.
WellCare shares soared $9.44, or 20.1 percent, to close Monday at $56.43.
The $9.44 spike was the seventh-largest dollar gain for the day on the New York Stock Exchange, and the 20.1 percent boost was third-highest percentage gain.
Although the news came on a positive day for stocks, it also suggests investors may be more forgiving of an Oct. 24 raid and subsequent federal investigation of the company, which administers Medicare and Medicaid plans for the government. After the raid, shares plunged to a low of $20.81.
The company's announcement of the contract renewals in Connecticut, Florida, Georgia, Illinois and Louisiana suggest that despite the investigation headed by the U.S. Attorney's Office for the Middle District of Florida, based in Tampa, the state is not cutting off business ties with WellCare. The company would not elaborate beyond a statement to the Securities and Exchange Commission submitted late Friday.
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