AdaptHealth (NASDAQ:AHCO) Shares Gap Down - What's Next?

Key Points

• AdaptHealth shares fell sharply, opening at $5.92 versus a prior close of $6.19 and later trading near $5.73, below both its 50-day and 200-day moving averages.
• The company reported a significant quarterly miss, posting a loss of $0.99 per share versus expectations for $0.17 in earnings and revenue of $740.31 million versus estimates of $846.77 million. Revenue declined 7.5% year over year, while net margin remained negative.
• Despite the weak results, analysts maintain a consensus “Moderate Buy” rating with an average price target of $10.29; Director Kenneth Samet also purchased 23,500 shares, while institutional investors own 82.67% of the stock.

AdaptHealth Corp. (NASDAQ:AHCO - Get Free Report)'s share price gapped down before the market opened on Wednesday . The stock had previously closed at $6.19, but opened at $5.92. AdaptHealth shares last traded at $5.7250, with a volume of 300,542 shares traded.

Analyst Upgrades and Downgrades

A number of equities analysts recently weighed in on the company. Canaccord Genuity Group set a $10.00 price target on AdaptHealth in a research note on Wednesday, August 5th. UBS Group dropped their target price on shares of AdaptHealth from $14.00 to $10.00 and set a "buy" rating on the stock in a research report on Thursday, August 6th. Weiss Ratings restated a "sell (d)" rating on shares of AdaptHealth in a report on Wednesday, August 19th. Truist Financial reduced their price target on shares of AdaptHealth from $14.00 to $9.00 and set a "buy" rating for the company in a research report on Wednesday, August 5th. Finally, Jefferies Financial Group raised shares of AdaptHealth from a "hold" rating to a "buy" rating and raised their price objective for the stock from $11.00 to $13.00 in a research note on Tuesday, July 21st. Seven analysts have rated the stock with a Buy rating, one has assigned a Hold rating and one has issued a Sell rating to the company's stock. According to MarketBeat.com, the company currently has an average rating of "Moderate Buy" and a consensus target price of $10.29.

AdaptHealth Stock Performance

The stock has a market capitalization of $770.46 million, a PE ratio of -3.32 and a beta of 1.39. The company has a debt-to-equity ratio of 1.37, a quick ratio of 0.98 and a current ratio of 1.12. The firm has a 50 day moving average of $8.16 and a 200-day moving average of $9.86.

AdaptHealth (NASDAQ:AHCO - Get Free Report) last issued its earnings results on Tuesday, August 4th. The company reported ($0.99) earnings per share for the quarter, missing analysts' consensus estimates of $0.17 by ($1.16). The business had revenue of $740.31 million during the quarter, compared to analyst estimates of $846.77 million. AdaptHealth had a negative net margin of 7.07% and a positive return on equity of 3.36%. AdaptHealth's revenue for the quarter was down 7.5% on a year-over-year basis. During the same quarter in the prior year, the company earned $0.10 EPS.

Insider Transactions at AdaptHealth

In related news, Director Kenneth Samet bought 23,500 shares of the firm's stock in a transaction on Thursday, August 6th. The stock was bought at an average price of $6.38 per share, with a total value of $149,930.00. Following the purchase, the director directly owned 48,569 shares of the company's stock, valued at approximately $309,870.22. This represents a 93.74% increase in their position. The transaction was disclosed in a legal filing with the SEC, which can be accessed through the SEC website. 1.95% of the stock is currently owned by insiders.

Hedge Funds Weigh In On AdaptHealth

A number of hedge funds have recently modified their holdings of the stock. PNC Financial Services Group Inc. grew its stake in AdaptHealth by 22.3% in the fourth 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 in the last quarter. MetLife Investment Management LLC increased its position in AdaptHealth by 3.1% in the 4th quarter. MetLife Investment Management LLC now owns 57,364 shares of the company's stock worth $571,000 after purchasing an additional 1,749 shares during the last quarter. Corient Private Wealth LLC raised its stake in shares of AdaptHealth by 8.6% during the 4th quarter. Corient Private Wealth LLC now owns 22,562 shares of the company's stock worth $227,000 after purchasing an additional 1,794 shares in the last quarter. Rockefeller Capital Management L.P. raised its stake 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 purchasing an additional 2,100 shares in the last quarter. Finally, Assetmark Inc. lifted its holdings in shares of AdaptHealth by 54.8% during the 1st quarter. Assetmark Inc. now owns 6,952 shares of the company's stock valued at $83,000 after buying an additional 2,460 shares during the last quarter. 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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