FORT WORTH, Texas—Q Global Capital Management, L.P., Q Global Advisors, LLC, Renegade Swish, LLC, and Geoffrey Raynor have collectively purchased shares of ModivCare Inc (NASDAQ:MODV), according to a recent regulatory filing. These transactions, executed over a span of three days, resulted in a total investment of approximately $1.23 million.
The purchases took place between November 19 and November 21, with share prices ranging from $15.59 to $17.48. On November 19, 21,411 shares were acquired at an average price of $15.59. The following day, November 20, saw the acquisition of 31,455 shares at an average price of $15.88. On November 21, two separate transactions resulted in the purchase of 13,412 shares at an average price of $16.49 and 10,245 shares at an average price of $17.48.
These acquisitions have increased the total number of shares held by these entities to 1,889,248. The transactions were executed under the management of Q Global Capital Management, with Q Global Advisors and Renegade Swish playing key roles in the ownership structure. Geoffrey Raynor, who controls these entities, is considered a ten percent owner of ModivCare Inc.
The purchases reflect continued investment by these stakeholders in ModivCare, a company specializing in transportation services.
In other recent news, ModivCare Inc. has reported steady third-quarter revenue of $702 million and an adjusted EBITDA of $43 million, aligning with market expectations. Despite a net loss of $27 million, the company reported a 5% growth in its Personal Care Services (PCS) and operational improvements in the Non-Emergency Medical (TASE:PMCN) Transportation (NEMT) segment. However, the company has revised its adjusted EBITDA guidance for 2024 to between $170 million and $180 million.
In terms of future expectations, ModivCare projects a 10% increase in adjusted EBITDA for 2025, driven by membership growth and new contracts. The company is also in discussions for a long-term credit facility amendment. Despite facing challenges in the Medicare Advantage market, ModivCare's PCS segment saw a year-over-year growth of 5%, with revenue rising to $189 million, and the NEMT segment won $12 million of annual contract value in Q3.
These are recent developments that have been reported by ModivCare, reflecting the company's strategic positioning and operational efficiency in navigating healthcare complexities.
InvestingPro Insights
The recent share purchases by Q Global Capital Management and affiliated entities align with several key insights from InvestingPro. ModivCare Inc (NASDAQ:MODV) has shown a significant return over the last week, with InvestingPro data indicating a 1-week price total return of 8.78%. This short-term uptick may have influenced the timing of these insider purchases.
Despite the recent positive momentum, ModivCare faces some financial challenges. An InvestingPro Tip notes that the company is "quickly burning through cash," which could be a concern for long-term investors. Additionally, the company operates with a significant debt burden, potentially impacting its financial flexibility.
On a more optimistic note, analysts predict that ModivCare will be profitable this year, according to another InvestingPro Tip. This projection could explain the insiders' confidence in increasing their stake in the company. The stock is also trading at a low revenue valuation multiple, which might suggest potential undervaluation to some investors.
For readers interested in a deeper analysis, InvestingPro offers 12 additional tips for ModivCare, providing a more comprehensive view of the company's financial health and market position.
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