Here's Why Tivity Health Inc.'s SilverSneakers Are Getting Scuffed Up Today
Shares of Tivity Health Inc. (NASDAQ: TVTY), the health and fitness program provider most famous for the SilverSneakers brand are getting decimated on Monday. Investors are jumping ship in response to an announcement by UnitedHealth Group Inc. (NYSE: UNH) that suggests the giant insurer will no longer be a big client and instead become a major competitive threat.
The stock has fallen about 32.6% as of 1:29 p.m. EST on Monday.
Tivity Health's core contract with UnitedHealth Group expires this year, and Monday's announcement suggests the country's largest private insurer is going to integrate the fitness benefit it had previously outsourced to Tivity Health. When the company reported third-quarter earnings a couple weeks ago it boasted that 14.5 million Americans were eligible to participate in its SilverSneakers brand fitness program, but that figure will probably be reduced by a significant figure when the company reports again.
Source: Fool.com
