FORT WORTH—Q Global Capital Management, L.P., a significant shareholder in ModivCare Inc (NASDAQ:MODV), has recently acquired additional shares in the company. According to a filing with the Securities and Exchange Commission, the firm purchased a total of 139,515 shares over three consecutive days, with transactions occurring on October 30, October 31, and November 1.
The purchases were made at prices ranging from $15.89 to $16.15 per share, amounting to a total investment of approximately $2.23 million. Following these acquisitions, Q Global Capital Management now holds 1,721,617 shares of ModivCare's common stock.
This latest acquisition underscores the continued interest and involvement of Q Global Capital Management, L.P., along with its affiliates Q Global Advisors, LLC, and Renegade Swish, LLC, in ModivCare, a company known for its transportation services.
In other recent news, ModivCare Inc., a provider of healthcare services, experienced a series of financial developments. The company reported its Q2 2024 financial results, announcing an adjusted EBITDA of $45 million and revenue of $698 million, both unchanged from the previous year. Despite growth in the non-emergency medical transportation (NEMT) segment, ModivCare recorded a net loss of $129 million, largely resulting from a $105 million goodwill impairment in the remote patient monitoring (RPM) 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. The company is focused on deleveraging its balance sheet and optimizing operations to achieve a leverage ratio of 3 times.
In another development, Lake Street Capital Markets reduced its price target on ModivCare from $50.00 to $30.00, while maintaining its Buy rating. The adjustment follows ModivCare's challenges in collecting a significant portion of its receivables and revised earnings guidance. Despite these financial adjustments, ModivCare remains optimistic about its future, expecting current challenges to subside as utilization patterns stabilize.
InvestingPro Insights
The recent share acquisition by Q Global Capital Management aligns with several key financial indicators for ModivCare Inc (NASDAQ:MODV). According to InvestingPro data, ModivCare's stock has shown a significant return of 12.28% over the last week, which may have influenced the timing of Q Global's purchase.
Despite the recent positive movement, ModivCare faces some financial challenges. An InvestingPro Tip highlights that the company operates with a significant debt burden, which could be a concern for investors. Additionally, the company is not profitable over the last twelve months, with a negative P/E ratio of -3.45.
However, there are also positive signals. Another InvestingPro Tip suggests that net income is expected to grow this year, and analysts predict the company will be profitable this year. This optimistic outlook might explain Q Global's increased stake in the company.
It's worth noting that ModivCare's revenue for the last twelve months as of Q2 2023 stands at $2,772.51 million, with a revenue growth of 4.11% over the same period. The company's market capitalization is currently $230.55 million, indicating it's a relatively small-cap stock.
For investors considering following Q Global's move, it's important to note that ModivCare's stock generally trades with high price volatility, as pointed out by another InvestingPro Tip. This volatility is reflected in the stock's performance, with a -63.22% year-to-date price total return.
InvestingPro offers 12 additional tips for ModivCare, providing a more comprehensive analysis for those interested in delving deeper into the company's financial health and market position.
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