AdaptHealth (NASDAQ:AHCO) Trading Down 4% - Here's What Happened

Key Points

• AdaptHealth shares fell 4% in Wednesday trading, dipping to as low as $9.76 before last changing hands at $9.73. Volume was well below normal, with about 426,584 shares traded versus the average of 1.31 million.
• Analysts remain cautiously positive overall, with five Buy ratings, two Holds and one Sell, and a consensus price target of $14.29. Recent reports ranged from Jefferies’ $11 target and Hold rating to RBC’s raised $15 target and Outperform rating.
• Recent quarterly earnings were mixed: AdaptHealth posted a loss of $0.12 per share, missing estimates, but revenue of $819.8 million topped expectations and rose 5.4% year over year. Insider activity was also notable, with one major shareholder buying shares and another insider selling under a pre-arranged trading plan.

AdaptHealth Corp. (NASDAQ:AHCO - Get Free Report)'s share price fell 4% during mid-day trading on Wednesday . The company traded as low as $9.76 and last traded at $9.7310. 426,584 shares were traded during mid-day trading, a decline of 67% from the average session volume of 1,308,663 shares. The stock had previously closed at $10.14.

Wall Street Analysts Forecast Growth

A number of brokerages recently issued reports on AHCO. Jefferies Financial Group reissued a "hold" rating and issued a $11.00 target price on shares of AdaptHealth in a research report on Monday, April 20th. Robert W. Baird set a $18.00 target price on AdaptHealth in a research report on Wednesday, May 6th. Royal Bank Of Canada lifted their target price on AdaptHealth from $13.00 to $15.00 and gave the company an "outperform" rating in a research report on Monday, May 11th. Wall Street Zen raised AdaptHealth from a "hold" rating to a "buy" rating in a research report on Sunday. Finally, Leerink Partners dropped their target price on AdaptHealth from $13.00 to $12.00 and set an "outperform" rating on the stock in a research report on Thursday, February 26th. Five investment analysts have rated the stock with a Buy rating, two have given a Hold rating and one has issued a Sell rating to the company. Based on data from MarketBeat, the company presently has an average rating of "Moderate Buy" and a consensus price target of $14.29.

AdaptHealth Price Performance

The stock has a market cap of $1.33 billion, a price-to-earnings ratio of -15.77, a price-to-earnings-growth ratio of 0.51 and a beta of 1.47. The company has a 50-day simple moving average of $11.26 and a two-hundred day simple moving average of $10.58. The company has a debt-to-equity ratio of 1.21, a quick ratio of 0.71 and a current ratio of 0.92.

AdaptHealth (NASDAQ:AHCO - Get Free Report) last posted its quarterly earnings results on Tuesday, May 5th. The company reported ($0.12) earnings per share for the quarter, missing the consensus estimate of $0.01 by ($0.13). The company 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 2.76% and a negative net margin of 2.42%.The firm's revenue for the quarter was up 5.4% compared to the same quarter last year. During the same period last year, the firm earned ($0.05) EPS. As a group, equities research analysts forecast that AdaptHealth Corp. will post 0.44 EPS for the current year.

Insider Buying and Selling

In other AdaptHealth news, major shareholder Richard M. Cashin, Jr. bought 447,100 shares of the firm's stock in a transaction that occurred on Friday, March 20th. The shares were acquired at an average cost of $9.91 per share, with a total value of $4,430,761.00. Following the acquisition, the insider owned 16,312,698 shares of the company's stock, valued at $161,658,837.18. The trade was a 2.82% increase in their ownership of the stock. The acquisition was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, insider Russell E. Schuster III sold 11,275 shares of the business's stock in a transaction that occurred on Monday, June 1st. The stock was sold at an average price of $10.06, for a total value of $113,426.50. Following the transaction, the insider directly owned 136,538 shares in the company, valued at $1,373,572.28. The trade was a 7.63% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. 1.95% of the stock is currently owned by insiders.

Institutional Inflows and Outflows

Institutional investors have recently made changes to their positions in the business. Rockefeller Capital Management L.P. increased its holdings in shares of AdaptHealth by 433.0% during the 4th quarter. Rockefeller Capital Management L.P. now owns 2,585 shares of the company's stock worth $26,000 after acquiring an additional 2,100 shares during the last quarter. FNY Investment Advisers LLC bought a new stake in AdaptHealth in the 3rd quarter valued at $35,000. Assetmark Inc. boosted its stake in AdaptHealth by 54.8% in the 1st quarter. Assetmark Inc. now owns 6,952 shares of the company's stock valued at $83,000 after purchasing an additional 2,460 shares during the period. PNC Financial Services Group Inc. boosted its stake in AdaptHealth by 22.3% in the 4th quarter. PNC Financial Services Group Inc. now owns 7,003 shares of the company's stock valued at $70,000 after purchasing an additional 1,279 shares during the period. Finally, Tower Research Capital LLC TRC boosted its stake in AdaptHealth by 318.0% in the 2nd quarter. Tower Research Capital LLC TRC now owns 9,592 shares of the company's stock valued at $90,000 after purchasing an additional 7,297 shares during the period. 82.67% of the stock is owned by institutional investors and hedge funds.

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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