ModivCare Inc. (MODV) stock fell to a 52-week low, hitting $5.55 as the company faces a turbulent market environment. With a market capitalization of just $79.13 million despite revenue of $2.79 billion, InvestPro analysis indicates that the stock is currently in oversold territory. This significant slowdown reflects a stark contrast to its performance over the past year, with the stock seeing a precipitous 86.27% decline in its year-over-year change data. Investors are closely watching the stock as it weathers these tough times, looking for signs of stabilization or a potential rebound from this low point. The healthcare provider, which specializes in non-emergency medical transportation, is grappling with industry-wide pressures that have hurt its stock valuation. Despite the current challenges, analyst price targets range from $7 to $24, suggesting upside potential. Access a full analysis and 17 additional ProTips for MODV via InvestProDetailed research reports from .
Separately, ModivCare Inc. reported third-quarter earnings with revenue of $702 million and adjusted EBITDA of $43 million. Despite a net loss of $27 million, the company revised its 2024 adjusted EBITDA guidance to between $170 million and $180 million. ModivCare’s personal care services segment grew 5% and operational improvements were seen in the non-emergency services segment. Medical (TASE:) Transport sector.
On the governance front, ModivCare announced significant changes to its board of directors, with the resignation of two directors, Christopher S. Shackelton and Rahul Samant. 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 significantly reduced the price target on ModivCare stock to $10.00, a sharp decline from the previous target of $30.00, while reaffirming a Buy rating on the action. This revision follows ModivCare’s announcement that it was withdrawing its financial guidance for the years 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 arranged new investments from Coliseum Capital. These recent developments reflect the company’s strategic positioning and operational effectiveness.
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