MODV Stock Hits 52-Week Low at $5.55 Amid Market Challenges By Investing.com
The stock of ModivCare Inc. (MODV) dropped to a 52-week low, hitting a low of $5.55 as the company faced a turbulent market environment. With a market cap of $79.13 million despite generating revenue of $2.79 billion, InvestingPro’s analysis indicates that the stock is currently in oversold territory. This significant decline shows a significant difference in its performance over the past year, with the stock experiencing a staggering 86.27% decline in its 1-year change data. Investors are keeping a close eye on the stock as it navigates these challenging times, looking for signs of stabilization or a potential rebound from this low point. The healthcare services provider, which specializes in non-emergency medical transportation, has been facing industry-wide pressures that have taken a toll on its market share. Despite the current challenges, analyst price ranges range from $7 to $24, suggesting potential upside. Access comprehensive analysis and 17 ProTips for MODV with InvestingPro’s detailed research reports.
In other recent news, ModivCare Inc. reported third quarter earnings with revenue of $702 million and adjusted EBITDA of $43 million. Despite the net loss of $27 million, the company revised its adjusted EBITDA guidance for 2024 to between $170 million and $180 million. ModivCare’s Personal Care Services segment grew by 5%, and saw improvements in Non-Emergency operations. Medicine (TASE:) Transportation section.
On the management side, ModivCare has announced major board changes, with two directors, Christopher S. Shackelton and Rahul Samant, stepping down. The vacancies were quickly filled with the appointment of Leslie V. Norwalk as the new Interim Chairman of the Board, and the addition of two new independent directors, Craig Barbarosh and Neal Goldman.
Additionally, Lake Street Capital Markets lowered their target price on shares of ModivCare to $10.00, a significant decrease from their previous target of $30.00, while reaffirming a buy rating on the stock. The revision follows ModivCare’s announcement that it has withdrawn its financial guidance for 2024 and 2025, citing changes in its business and the broader market environment.
The company also secured $75 million in additional financing from some of its existing lenders and plans an additional investment from Coliseum Capital. This latest development reflects the company’s strategic position and efficiency.
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