InnovAge Holding Corp. (NASDAQ:INNV) Stock Short Interest Declines 57.0%

Key Points

• InnovAge’s short interest fell 57% to 1.15 million shares as of October 15, representing 0.8% of shares outstanding and 2.1 days of average trading volume.
• Shares recently traded at $9.19, while analysts’ average price target is $10.50 and the consensus rating is “Reduce.” The company narrowly missed quarterly EPS estimates but exceeded revenue expectations.
• Major shareholders sold more than 11.5 million shares during the quarter for approximately $106 million, while insiders collectively sold 13.03 million shares worth $120.5 million.

InnovAge Holding Corp. (NASDAQ:INNV - Get Free Report) saw a significant drop in short interest in the month of October. As of October 15th, there was short interest totaling 1,146,271 shares, a drop of 57.0% from the September 30th total of 2,665,762 shares. Based on an average daily volume of 555,648 shares, the short-interest ratio is currently 2.1 days. Currently, 0.8% of the shares of the stock are short sold.

InnovAge Stock Performance

Shares of INNV stock traded down $0.05 during trading on Friday, reaching $9.19. 592,950 shares of the company's stock traded hands, compared to its average volume of 379,341. The firm's 50-day moving average is $9.87 and its 200 day moving average is $9.02. The company has a market capitalization of $1.25 billion, a P/E ratio of -459.50 and a beta of 0.15. InnovAge has a 1 year low of $3.93 and a 1 year high of $12.64. The company has a current ratio of 1.05, a quick ratio of 1.05 and a debt-to-equity ratio of 0.23.

InnovAge (NASDAQ:INNV - Get Free Report) last announced its quarterly earnings results on Tuesday, September 8th. The company reported $0.06 earnings per share (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 analysts' expectations of $238.33 million. InnovAge had a negative return on equity of 1.03% and a negative net margin of 0.26%. Equities research analysts expect that InnovAge will post 0.43 EPS for the current year.

Wall Street Analyst Weigh In

A number of brokerages have recently weighed in on INNV. Weiss Ratings reaffirmed a "sell (d-)" rating on shares of InnovAge in a research report on Thursday, August 13th. KeyCorp lifted their price target on shares of InnovAge from $13.00 to $14.00 and gave the company an "overweight" rating in a research report on Wednesday, September 9th. Finally, Wall Street Zen lowered shares of InnovAge from a "strong-buy" rating to a "buy" rating in a research note on Sunday, October 18th. One equities research analyst has rated the stock with a Buy rating, one has assigned a Hold rating and two have given a Sell rating to the company. Based on data from MarketBeat, the company has an average rating of "Reduce" and an average price target of $10.50.

Insider Buying and Selling

In other news, major shareholder Aggregator Lp Ignite sold 10,000,000 shares of the company's stock in a transaction that occurred on Thursday, September 24th. The stock was sold at an average price of $9.25, for a total value of $92,500,000.00. Following the completion of the transaction, the insider owned 102,576,555 shares of the company's stock, valued at $948,833,133.75. This represents a 8.88% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is available through this hyperlink. Also, major shareholder Carson Anderson & Stow Welsh sold 1,500,000 shares of the firm's stock in a transaction dated Wednesday, October 21st. The stock was sold at an average price of $9.25, for a total value of $13,875,000.00. Following the transaction, the insider owned 101,076,555 shares of the company's stock, valued at $934,958,133.75. This trade represents a 1.46% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Over the last quarter, insiders have sold 13,027,216 shares of company stock worth $120,489,535. Company insiders own 1.00% of the company's stock.

Hedge Funds Weigh In On InnovAge

Institutional investors and hedge funds have recently added to or reduced their stakes in the company. Arlington Capital Management INC boosted its holdings in InnovAge by 5.2% in the third quarter. Arlington Capital Management INC now owns 31,244 shares of the company's stock worth $275,000 after purchasing an additional 1,546 shares during the last quarter. Legal & General Group Plc purchased a new stake in InnovAge during the 2nd quarter valued at $25,000. Kathmere Capital Management LLC raised its stake in InnovAge by 17.0% during the 1st quarter. Kathmere Capital Management LLC now owns 15,534 shares of the company's stock valued at $125,000 after buying an additional 2,260 shares during the last quarter. NewEdge Advisors LLC bought a new position in shares of InnovAge during the 2nd quarter valued at $142,000. Finally, Virtus Advisers LLC bought a new stake in shares of InnovAge in the second quarter worth $207,000. Hedge funds and other institutional investors own 12.26% of the company's stock.

InnovAge Company Profile

InnovAge NASDAQ: INNV is a healthcare services company that provides comprehensive care for 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 rather than moving to nursing facilities, while coordinating medical, social, and supportive services through an integrated care program.

InnovAge's services may include primary and specialty medical care, nursing, physical and occupational therapy, behavioral health, pharmacy services, dentistry, vision care, meals, transportation, social services, and in-home support.

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