Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.

What: Shares of health insurance provider Coventry Health Care (NYSE: CVH) jumped as much as 10.9% today, with an early spike providing most of the price and volume movements.

So what: The health insurance industry is boiling in general today, as sector giant CIGNA (NYSE: CI) decided to buy smaller rival HealthSpring (NYSE: HS) for a healthy $3.8 billion. That's a nearly 35% buyout premium, and investors in smaller insurers like Coventry and WellCare Health Plans (NYSE: WCG) could make out like bandits if this is the start of a consolidation trend.

Now what: Mind you, it would take a humdinger of a buyer to absorb Coventry's bulk, and the big ones aren't exactly starved for market success at the moment. WellPoint (NYSE: WLP) could use some help, but the company sits on a cash-starved balance sheet with plenty of debt and is busy financing a very large share buyback plan instead. Coventry has a lot going for it -- to the point that our Stock Advisor team made it an official recommendation -- but being a buyout target ain't among the pluses, in my opinion.

Interested in more information about Coventry Health Care? Add it to My Watchlist.