FORT WORTH, Texas—Q Global Capital Management, L.P., a significant shareholder in ModivCare Inc (NASDAQ:MODV), recently increased its stake in the company through a series of stock purchases totaling $539,210. The transactions occurred over three days, with shares acquired at prices ranging from $17.67 to $17.73 each.
The transactions were executed in multiple trades, with Q Global Capital Management acquiring 8,113 shares on November 22, followed by 4,308 shares on November 25, and concluding with 18,057 shares on November 26. These purchases collectively raised Q Global Capital Management's total holdings to 1,919,726 shares.
Q Global Advisors, LLC and Renegade Swish, LLC, both linked to Q Global Capital, are also listed as ten percent owners, with Geoffrey P. Raynor controlling Renegade Swish. The entities involved have disclaimed beneficial ownership of the shares except to the extent of their respective pecuniary interests.
ModivCare Inc, based in Denver, Colorado, is a transportation services company, formerly known as Providence Service Corp until its name change in 2003.
In other recent news, ModivCare reported third-quarter revenue of $702 million and an adjusted EBITDA of $43 million, in line with market expectations. The company also noted a 5% growth in its Personal Care Services segment and operational improvements in the Non-Emergency Medical (TASE:PMCN) Transportation sector. Despite a net loss of $27 million, ModivCare has revised its adjusted EBITDA guidance for 2024 to between $170 million and $180 million. The company is also projecting a 10% increase in adjusted EBITDA for 2025, driven by membership growth and new contracts. ModivCare is currently working on amending its credit agreement and managing a contract receivable balance of $110 million. The company's strategic positioning and operational efficiency are aimed at navigating healthcare complexities. These are among the recent developments at ModivCare.
InvestingPro Insights
Recent data from InvestingPro sheds light on ModivCare Inc's financial position and market performance, providing context to Q Global Capital Management's increased stake. The company's market capitalization stands at $252.96 million, reflecting its current valuation in the market.
ModivCare has shown a strong short-term performance, with InvestingPro data indicating a significant 13.92% return over the last week and an impressive 23.25% return over the past month. This recent upward trend aligns with Q Global Capital Management's decision to increase its holdings, suggesting potential confidence in the company's near-term prospects.
However, investors should note that ModivCare operates with a significant debt burden, as highlighted by one of the InvestingPro Tips. This financial situation may explain why the company is trading at a low revenue valuation multiple, another insight provided by InvestingPro.
Despite these challenges, analysts predict that ModivCare will be profitable this year, which could be a factor in Q Global Capital Management's investment decision. This positive outlook is tempered by the fact that the company has not been profitable over the last twelve months, according to InvestingPro Tips.
For investors seeking a more comprehensive analysis, InvestingPro offers 12 additional tips for ModivCare, providing a deeper understanding of the company's financial health and market position. These insights can be valuable for those considering following Q Global Capital Management's lead or evaluating their own investment strategies in the transportation services sector.
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