MIAMI - Cano Health, Inc. (NYSE: CANO), a primary care provider, is facing delisting from the New York Stock Exchange (NYSE) after filing for Chapter 11 bankruptcy protection on Sunday. The NYSE has initiated delisting proceedings and suspended trading of Cano Health's Class A common stock, as announced by the company today.
The healthcare firm, which offers value-based care to approximately 310,000 members, submitted voluntary petitions for relief under the U.S. Bankruptcy Code in the U.S. Bankruptcy Court for the District of Delaware on February 4, 2024. Following the NYSE's decision, Cano Health has chosen not to appeal and anticipates the removal of its common stock from the exchange.
Trading of Cano Health's common stock is expected to continue on the Over-The-Counter (OTC) market under the ticker symbol "CANOQ." The company, established in 2009 and headquartered in Miami, Florida, has been recognized for its high-touch, technology-powered healthcare services.
This news is based on a press release statement from Cano Health, Inc.
InvestingPro Insights
As Cano Health, Inc. navigates through its Chapter 11 bankruptcy proceedings, current and potential investors are closely monitoring the company's financial health and stock performance. According to the latest data from InvestingPro, Cano Health is operating with a significantly reduced market cap of only $12.49 million. Despite recent challenges, management has been active in repurchasing shares, which could signal confidence in the company's long-term prospects.
InvestingPro Tips highlight that Cano Health's stock is currently in oversold territory based on the Relative Strength Index (RSI), which may interest traders looking for a potential rebound. However, with a negative adjusted P/E ratio of -0.05 and a gross profit margin of just 4.94% over the last twelve months as of Q1 2023, Cano's financials reflect the difficulties it faces. Moreover, the company's short-term obligations exceed its liquid assets, adding to the financial strain.
For those considering an investment in Cano Health, it's important to note that the company's valuation implies a poor free cash flow yield, and analysts do not anticipate profitability this year. With a total of 18 additional InvestingPro Tips available for Cano Health, investors can gain deeper insights into the company's financial standing and stock performance. Subscribers to InvestingPro can access these tips, and those interested in subscribing can take advantage of a special New Year sale with discounts of up to 50%. Use coupon code SFY24 for an additional 10% off a 2-year InvestingPro+ subscription, or SFY241 for an additional 10% off a 1-year subscription, to make a more informed decision on this high-risk investment opportunity.
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