AdaptHealth (NASDAQ:AHCO) Shares Gap Up - Should You Buy?

Key Points

• AdaptHealth shares opened sharply higher, rising from a prior close of $5.91 to $6.24 before trading near $6.02, with about 1.35 million shares changing hands.
• Analysts remain broadly positive despite reduced price targets: seven rate the stock Buy, one Hold, and one Sell, producing a “Moderate Buy” consensus and an average target of $10.14.
• The company’s latest quarter showed significant weakness, with an adjusted loss of $1.13 per share versus a $0.05 consensus loss and revenue down 9.1% year over year, although revenue exceeded estimates.

Shares of AdaptHealth Corp. (NASDAQ:AHCO - Get Free Report) gapped up prior to trading on Tuesday. The stock had previously closed at $5.91, but opened at $6.24. AdaptHealth shares last traded at $6.0150, with a volume of 1,351,901 shares changing hands.

Analyst Upgrades and Downgrades

A number of research firms recently commented on AHCO. Truist Financial reduced their price target on AdaptHealth from $14.00 to $9.00 and set a "buy" rating for the company in a report on Wednesday, August 5th. Jefferies Financial Group upgraded AdaptHealth from a "hold" rating to a "buy" rating and upped their price objective for the company from $11.00 to $13.00 in a research note on Tuesday, July 21st. UBS Group cut their price objective on AdaptHealth from $14.00 to $10.00 and set a "buy" rating for the company in a research report on Thursday, August 6th. Royal Bank Of Canada dropped their price target on AdaptHealth from $15.00 to $8.00 and set an "outperform" rating on the stock in a research note on Thursday, August 6th. Finally, Robert W. Baird dropped their price target on AdaptHealth from $10.00 to $9.00 and set an "outperform" rating on the stock in a research note on Thursday, September 17th. Seven research 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 data from MarketBeat.com, the stock has an average rating of "Moderate Buy" and a consensus target price of $10.14.

AdaptHealth Stock Performance

The firm has a market capitalization of $828.27 million, a price-to-earnings ratio of -3.55 and a beta of 1.42. The company has a fifty day moving average of $5.89 and a two-hundred day moving average of $9.14. The company has a debt-to-equity ratio of 1.37, a quick ratio of 0.98 and a current ratio of 1.12.

AdaptHealth (NASDAQ:AHCO - Get Free Report) last released its quarterly earnings results on Tuesday, November 3rd. The company reported ($1.13) earnings per share (EPS) for the quarter, missing the consensus estimate of ($0.05) by ($1.08). AdaptHealth had a negative net margin of 7.07% and a positive return on equity of 3.36%. The firm had revenue of $745.65 million during the quarter, compared to the consensus estimate of $725.87 million. During the same quarter last year, the firm earned $0.16 earnings per share. The business's revenue for the quarter was down 9.1% compared to the same quarter last year.

Insider Activity at AdaptHealth

In other AdaptHealth news, Director Kenneth Samet purchased 23,500 shares of the firm's stock in a transaction that occurred on Thursday, August 6th. The shares were acquired at an average cost of $6.38 per share, for a total transaction of $149,930.00. Following the completion of the purchase, the director owned 48,569 shares of the company's stock, valued at approximately $309,870.22. The trade was a 93.74% increase in their position. The purchase was disclosed in a filing with the Securities & Exchange Commission, which is accessible through the SEC website. Company insiders own 1.95% of the company's stock.

Institutional Trading of AdaptHealth

Several hedge funds and other institutional investors have recently bought and sold shares of the business. Rockefeller Capital Management L.P. lifted its position 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 valued at $26,000 after acquiring an additional 2,100 shares during the period. Assetmark Inc. grew 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 worth $83,000 after purchasing an additional 2,460 shares in the last quarter. State of Wyoming increased its position in shares of AdaptHealth by 9.3% in the first quarter. State of Wyoming now owns 28,986 shares of the company's stock worth $345,000 after purchasing an additional 2,464 shares during the period. Cetera Investment Advisers increased its position in shares of AdaptHealth by 10.3% in the first quarter. Cetera Investment Advisers now owns 34,329 shares of the company's stock worth $409,000 after purchasing an additional 3,212 shares during the period. Finally, Pictet Asset Management Holding SA increased its position in shares of AdaptHealth by 49.4% in the first quarter. Pictet Asset Management Holding SA now owns 15,644 shares of the company's stock worth $186,000 after purchasing an additional 5,171 shares during the period. Institutional investors and hedge funds own 82.67% of the company's stock.

AdaptHealth Company Profile

AdaptHealth Corp. NASDAQ: AHCO is a provider of home medical equipment, supplies and related healthcare services in the United States. The company helps patients manage chronic conditions and recover from illness or injury outside of traditional healthcare facilities, working with individuals, caregivers, physicians and payers.

Its products and services include respiratory equipment and supplies, oxygen therapy, sleep therapy devices such as continuous positive airway pressure systems, diabetes management products, mobility and accessibility equipment, and other durable medical equipment.

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