FORT WORTH, Texas—In recent transactions involving ModivCare Inc (NASDAQ:MODV), Q Global Capital Management, L.P., a significant stakeholder, acquired a substantial amount of the company's common stock. According to the latest SEC filings, Q Global Capital purchased a total of 75,548 shares over two days, amounting to approximately $1.07 million. The shares were bought at prices ranging from $14.16 to $14.36 per share.
The transactions took place on October 23 and October 24, with 50,748 shares acquired on the first day and an additional 24,800 shares on the following day. This acquisition increases Q Global Capital's stake in ModivCare to 1,499,838 shares.
Q Global Capital Management, along with associated entities such as Q Global Advisors, LLC and Renegade Swish, LLC, is known for its investment activities in ModivCare, a company specializing in transportation services. The purchases were made under an investment management agreement, with Q Global Capital acting on behalf of Q5-R5 Trading, Ltd.
These transactions reflect ongoing interest and investment activities by Q Global Capital in ModivCare, further solidifying its position as a significant shareholder in the company.
In other recent news, ModivCare Inc. has been under the analyst's lens with Lake Street Capital Markets adjusting its price target on the company's stock to $30.00 from the previous $50.00, while maintaining a Buy rating. This adjustment follows ModivCare's revelation of challenges in collecting a significant portion of its receivables and a revision in its earnings guidance. The healthcare services provider has faced difficulties in timely collecting around $60 million of its current contract receivables from its Non-Emergency Medical Transportation segment.
In response to these collection issues, ModivCare has revised its Adjusted EBITDA forecast for the year 2024 and set new guidance, anticipating a 10% growth in AEBITDA in 2025 from the revised lower level in 2024. The firm expects the current challenges to subside as utilization patterns stabilize.
In other recent developments, ModivCare reported its financial results for the second quarter of 2024, with an adjusted EBITDA of $45 million and revenue of $698 million, unchanged compared to the previous year. Despite growth in the non-emergency medical transportation segment, the company experienced a net loss of $129 million, largely due to a $105 million goodwill impairment in the remote patient monitoring segment. ModivCare reaffirmed its full-year 2024 revenue guidance of $2.7 billion to $2.9 billion, while adjusting its EBITDA guidance to $185 million to $195 million.
InvestingPro Insights
Recent insider purchases by Q Global Capital Management align with several interesting metrics and insights from InvestingPro. ModivCare's stock has experienced significant volatility, with a 23.07% price return over the last month, but a substantial 37.61% decline over the past three months. This volatility is consistent with an InvestingPro Tip indicating that the stock generally trades with high price volatility.
The recent insider buying occurred at prices between $14.16 and $14.36 per share, which is notable given that the stock is trading at only 27.54% of its 52-week high. An InvestingPro Tip suggests that the stock's RSI indicates it may be in oversold territory, potentially explaining the insider's decision to increase their stake at current price levels.
Despite the recent stock performance, ModivCare's fundamentals show some positive signs. The company's revenue for the last twelve months as of Q2 2023 stands at $2.77 billion, with a revenue growth of 4.11% over the same period. Additionally, an InvestingPro Tip reveals that net income is expected to grow this year, and analysts predict the company will be profitable this year.
For investors seeking a more comprehensive analysis, InvestingPro offers 15 additional tips for ModivCare, providing a deeper understanding of the company's financial health and market position.
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