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ModivCare Inc. (NASDAQ:MODV), a company specializing in transportation services currently trading at $4.03, announced on Monday the resignation of Garth Graham from its Board of Directors, effective February 28, 2025. According to InvestingPro data, the company’s stock has declined over 84% in the past year, with analysts recently revising earnings expectations downward. The departure, as stated in the company’s recent SEC filing, is not due to any disagreements with the company’s operations, policies, or practices.
Graham’s resignation was acknowledged by Leslie Norwalk, Chair of the Board, with a statement recognizing his valuable insights on the impact of social determinants of health on ModivCare’s business lines. Norwalk expressed gratitude for Graham’s years of service and extended best wishes for his future endeavors.
ModivCare, formerly known as Providence Service Corp, is incorporated in Delaware and has its principal executive offices in Denver, Colorado. The company’s common stock is listed on The NASDAQ Global Select Market under the ticker symbol MODV.
The information regarding Graham’s resignation and the company’s statements about his service are based on a press release statement filed with the SEC. This development comes as part of the corporate governance changes that occur within publicly traded companies. ModivCare has not announced any immediate plans for a replacement on the Board following Graham’s departure.
In other recent news, ModivCare Inc. has experienced a series of significant developments. The company announced a downgrade in its issuer credit rating from S&P Global Ratings, shifting from ’B-’ to ’CCC+’, due to ongoing financial challenges and the withdrawal of its 2024 and 2025 guidance. This comes alongside the issuance of a $75 million first-lien term loan and plans to exchange up to $251 million of senior unsecured notes. Analysts from Jefferies and Lake Street Capital Markets have both adjusted their price targets for ModivCare, with Jefferies lowering it to $5.25 and Lake Street Capital Markets reducing it to $10.00, while maintaining a Hold and Buy rating, respectively.
ModivCare has also secured additional financing, including $30 million from Coliseum Capital, to bolster its liquidity through mid-2025. The company is considering asset sales as a strategic move to improve its financial standing. Furthermore, ModivCare has made changes to its board, appointing two new independent directors, Craig Barbarosh and Neal Goldman, to bring additional expertise and governance. Additionally, Leslie V. Norwalk has been named Interim Chair following the resignation of two board members, Christopher S. Shackelton and Rahul Samant. These developments reflect ModivCare’s ongoing efforts to navigate financial and operational challenges in the current market environment.
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