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Ask Wall Street: TriZetto Inc. is on a roll.
Some 18 months ago, shares of the Newport Beach healthcare information technology company hit a low of $3 a share, giving it a market value of $120 million.
TriZetto since has brought on veteran managers, tinkered with its internal operations and focused on selling software and services to health plan operators amid a push for better Web-based healthcare record-keeping.
The result: a recent share price of $17.05, giving TriZetto a market value of $730 million.
“I think the fundamental performance of TriZetto is driving the stock price,” said Jeffrey Margolis, the company’s founder and chief executive.
The company was “unfairly placed in the post-dot-com penalty box” in the past, Margolis said.
TriZetto provides software and services for health plan insurers and benefits administrators. The company posted net income of $5 million on revenue of $73 million in the second quarter, compared to a profit of $400,000 on revenue of $68 million a year ago.
The company raised its profit guidance for the second time this year following the second-quarter earnings release.
Deals such as a software and services pact with Great-West Life
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