DocGo stock touches 52-week low at $1.35 amid market challenges

Published 21/05/2025, 15:20
DocGo stock touches 52-week low at $1.35 amid market challenges

In a challenging market environment, DocGo Inc. (DCGO) stock has reached its 52-week low, trading at $1.35. According to InvestingPro analysis, the stock appears undervalued at current levels, with technical indicators suggesting oversold conditions. The mobile health services provider, with annual revenue of $520.5M, has faced significant headwinds over the past year, reflected in the stock’s performance with a 1-year change showing a steep decline of nearly 55%. Despite the challenges, the company maintains a strong balance sheet with more cash than debt and a healthy current ratio of 2.44. Management has shown confidence through aggressive share buybacks. Investors have been cautious as the company navigates through a period of uncertainty, which has been marked by a broader market downturn affecting many growth-oriented healthcare stocks. DocGo’s current position at a 52-week low highlights the market’s recalibration of expectations for the sector and the company’s future growth prospects. For deeper insights into DocGo’s valuation and 13 additional ProTips, visit InvestingPro.

In other recent news, DocGo reported its first-quarter 2025 earnings, revealing a significant shortfall in both earnings per share (EPS) and revenue forecasts. The company announced an EPS of -$0.09, missing the expected $0.02, with revenue reaching $96 million compared to the forecasted $111.93 million. This revenue figure represents a 50% decrease from the same period in 2024, highlighting a challenging quarter for the company. BTIG responded to these results by downgrading DocGo’s stock from Buy to Neutral, citing the company’s ongoing difficulties and lack of visibility in its operations. Additionally, DocGo revised its 2025 revenue guidance downward from $410-$450 million to $300-$330 million, attributing this change to the exclusion of non-migrant municipal population health revenue. The company also adjusted its 2025 EBITDA guidance from a positive 5% margin to a loss of $20 million to $30 million. Despite these setbacks, DocGo anticipates exiting 2025 with over $110 million in cash and aims to be debt-free by year-end. The company continues to face delays in decision-making and contract launches, with approximately 35 open government RFP submissions remaining unanswered.

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