AdaptHealth (NASDAQ:AHCO) Shares Gap Down Following Weak Earnings

Key Points

• AdaptHealth shares gapped down about 13% after the quarter as EPS missed estimates — reported ($0.12) vs. a $0.01 consensus — opening at $10.98 from a $13.04 close.
• Revenue beat expectations at $819.8 million and rose 5.4% year‑over‑year, but the company posted a negative net margin (‑2.18%) and remains unprofitable overall.
• Major shareholder Richard M. Cashin Jr. bought 447,100 shares at about $9.91 (a 2.82% increase in his stake), while analysts maintain a consensus Hold rating with an average $13 price target.

AdaptHealth Corp. (NASDAQ:AHCO - Get Free Report) gapped down prior to trading on Tuesday after the company announced weaker than expected quarterly earnings. The stock had previously closed at $13.04, but opened at $10.98. AdaptHealth shares last traded at $11.3140, with a volume of 851,195 shares traded.

The company reported ($0.12) earnings per share (EPS) for the quarter, missing the consensus estimate of $0.01 by ($0.13). The firm had revenue of $819.80 million for the quarter, compared to analyst estimates of $796.63 million. AdaptHealth had a positive return on equity of 3.42% and a negative net margin of 2.18%.The company's quarterly revenue was up 5.4% compared to the same quarter last year. During the same period last year, the firm earned ($0.05) EPS.

Analysts Set New Price Targets

AHCO has been the subject of a number of recent research reports. Wall Street Zen cut AdaptHealth from a "buy" rating to a "hold" rating in a research report on Saturday, February 28th. Royal Bank Of Canada reiterated an "outperform" rating and set a $13.00 price objective on shares of AdaptHealth in a research report on Wednesday, February 25th. Truist Financial lifted their price objective on AdaptHealth from $13.00 to $14.00 and gave the stock a "buy" rating in a research report on Monday, April 13th. Jefferies Financial Group reiterated a "hold" rating and set a $11.00 price objective on shares of AdaptHealth in a research report on Monday, April 20th. Finally, Leerink Partners dropped their price objective on AdaptHealth from $13.00 to $12.00 and set an "outperform" rating for the company in a research report on Thursday, February 26th. Four research analysts have rated the stock with a Buy rating, two have issued a Hold rating and one has assigned a Sell rating to the company. According to MarketBeat.com, the company currently has a consensus rating of "Hold" and an average price target of $13.00.

Insider Transactions at AdaptHealth

In related news, major shareholder Richard M. Cashin, Jr. bought 447,100 shares of the stock in a transaction that occurred on Friday, March 20th. The stock was purchased at an average cost of $9.91 per share, for a total transaction of $4,430,761.00. Following the completion of the acquisition, the insider owned 16,312,698 shares in the company, valued at $161,658,837.18. This trade represents a 2.82% increase in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at this hyperlink. Insiders have purchased 2,494,518 shares of company stock valued at $24,352,291 in the last ninety days. 1.55% of the stock is currently owned by insiders.

Institutional Trading of AdaptHealth

A number of institutional investors have recently modified their holdings of AHCO. Deerfield Management Company L.P. grew its holdings in shares of AdaptHealth by 15.9% during the 3rd quarter. Deerfield Management Company L.P. now owns 11,477,730 shares of the company's stock worth $102,726,000 after purchasing an additional 1,572,835 shares during the period. Dimensional Fund Advisors LP grew its holdings in shares of AdaptHealth by 15.6% during the 3rd quarter. Dimensional Fund Advisors LP now owns 5,982,070 shares of the company's stock worth $53,537,000 after purchasing an additional 809,459 shares during the period. Reinhart Partners LLC. grew its holdings in shares of AdaptHealth by 10.6% during the 4th quarter. Reinhart Partners LLC. now owns 8,100,785 shares of the company's stock worth $80,684,000 after purchasing an additional 773,727 shares during the period. Kennedy Capital Management LLC grew its holdings in shares of AdaptHealth by 48.8% during the 3rd quarter. Kennedy Capital Management LLC now owns 2,090,138 shares of the company's stock worth $18,707,000 after purchasing an additional 685,554 shares during the period. Finally, Iron Triangle Partners LP grew its holdings in shares of AdaptHealth by 35.6% during the 4th quarter. Iron Triangle Partners LP now owns 2,609,003 shares of the company's stock worth $25,986,000 after purchasing an additional 684,871 shares during the period. Hedge funds and other institutional investors own 82.67% of the company's stock.

AdaptHealth Stock Down 13.0%

The company has a debt-to-equity ratio of 1.15, a quick ratio of 0.81 and a current ratio of 1.02. The firm has a market cap of $1.54 billion, a PE ratio of -20.62, a PEG ratio of 1.52 and a beta of 1.57. The stock has a fifty day moving average price of $11.20 and a 200-day moving average price of $10.36.

AdaptHealth Company Profile

AdaptHealth, Inc operates as a leading provider of home medical equipment (HME) and related services in the United States. The company focuses on delivering respiratory care, mobility solutions and bathroom safety products to patients with chronic and acute medical needs. Through its comprehensive service offerings, AdaptHealth aims to enhance quality of life and clinical outcomes for patients who require long-term support outside of a hospital setting.

The company's respiratory portfolio includes products such as continuous positive airway pressure (CPAP) devices, oxygen concentrators, ventilators, and associated supplies for patients with sleep apnea, COPD and other pulmonary conditions.

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