InnovAge (NASDAQ:INNV) Stock Rating Cut to "Buy" at Wall Street Zen

Key Points

• Wall Street Zen downgraded InnovAge from “strong-buy” to “buy.” Analyst opinions remain mixed, with MarketBeat reporting a consensus “Reduce” rating and a $10.50 average price target.
• InnovAge shares opened at $8.85, down 1.4%, while the company’s latest quarterly results missed EPS expectations ($0.06 versus $0.07) but exceeded revenue estimates ($261.95 million versus $238.33 million).
• Insider selling included a 10-million-share sale by major shareholder Aggregator LP Ignite for $92.5 million, while institutional investors—including BlackRock and Algert Global—built positions in the company.

InnovAge (NASDAQ:INNV - Get Free Report) was downgraded by stock analysts at Wall Street Zen from a "strong-buy" rating to a "buy" rating in a research report issued on Sunday, Wall Street Zen reports.

Several other research firms have also recently issued reports on INNV. KeyCorp increased their target price on shares of InnovAge from $13.00 to $14.00 and gave the stock an "overweight" rating in a research note on Wednesday, September 9th. Weiss Ratings restated a "sell (d-)" rating on shares of InnovAge in a research report on Thursday, August 13th. One investment analyst has rated the stock with a Buy rating, one has assigned a Hold rating and two have assigned a Sell rating to the company's stock. Based on data from MarketBeat, InnovAge has a consensus rating of "Reduce" and a consensus price target of $10.50.

InnovAge Trading Down 1.4%

Shares of InnovAge stock opened at $8.85 on Friday. InnovAge has a 52-week low of $3.93 and a 52-week high of $12.64. The stock has a market cap of $1.21 billion, a PE ratio of -442.50 and a beta of 0.15. The company has a debt-to-equity ratio of 0.23, a quick ratio of 1.05 and a current ratio of 1.05. The firm has a 50-day moving average of $10.14 and a 200-day moving average of $9.51.

InnovAge (NASDAQ:INNV - Get Free Report) last released its quarterly earnings data on Tuesday, September 8th. The company reported $0.06 EPS for the quarter, missing analysts' consensus estimates of $0.07 by ($0.01). The firm had revenue of $261.95 million during the quarter, compared to the consensus estimate of $238.33 million. InnovAge had a negative net margin of 0.26% and a negative return on equity of 1.03%. As a group, sell-side analysts forecast that InnovAge will post 0.43 EPS for the current year.

Insider Activity at InnovAge

In related news, insider Nicole Damato sold 23,814 shares of the company's stock in a transaction that occurred on Friday, September 25th. The shares were sold at an average price of $8.70, for a total value of $207,181.80. Following the transaction, the insider directly owned 304,897 shares in the company, valued at approximately $2,652,603.90. This represents a 7.24% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, major shareholder Aggregator Lp Ignite sold 10,000,000 shares of the firm's stock in a transaction that occurred on Thursday, September 24th. The shares were sold at an average price of $9.25, for a total transaction of $92,500,000.00. Following the completion of the sale, the insider directly owned 102,576,555 shares in the company, valued at $948,833,133.75. This represents a 8.88% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. 1.00% of the stock is currently owned by corporate insiders.

Hedge Funds Weigh In On InnovAge

Institutional investors have recently made changes to their positions in the stock. BlackRock Inc. purchased a new position in InnovAge in the second quarter worth $17,652,000. Algert Global LLC increased its stake in InnovAge by 844.1% in the second quarter. Algert Global LLC now owns 630,520 shares of the company's stock valued at $7,472,000 after acquiring an additional 563,735 shares during the last quarter. Hillsdale Investment Management Inc. purchased a new stake in InnovAge during the first quarter valued at about $4,250,000. Arrowstreet Capital Limited Partnership purchased a new stake in InnovAge during the first quarter valued at about $3,349,000. Finally, Renaissance Technologies LLC raised its position in InnovAge by 100.8% during the first quarter. Renaissance Technologies LLC now owns 370,817 shares of the company's stock valued at $2,974,000 after purchasing an additional 186,117 shares in the last quarter. Institutional investors own 12.26% of the company's stock.

About InnovAge

InnovAge NASDAQ: INNV is a healthcare company that provides comprehensive care and support services to older adults through the Program of All-Inclusive Care for the Elderly (PACE). Its model is designed to help eligible seniors remain living in their homes and communities while receiving coordinated medical, behavioral, rehabilitation and social services.

The company operates PACE centers that combine primary and specialty medical care, nursing, therapy, pharmacy services, transportation, meals and social activities.

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