AdaptHealth (NASDAQ:AHCO) Stock Jumps 11.9% - Still a Buy?

Key Points

• AdaptHealth shares rose 11.9% to about $7.03, despite trading volume coming in 19% below its average.
• Analyst views are mixed but lean positive: seven rate the stock Buy, one Hold and one Sell, for a “Moderate Buy” consensus and a $10.14 average price target.
• The latest quarter delivered a sharp earnings miss, with EPS of -$1.13 versus estimates of -$0.05, although revenue of $745.65 million beat forecasts; revenue was down 9.1% year over year.

AdaptHealth Corp. (NASDAQ:AHCO - Get Free Report)'s share price traded up 11.9% on Wednesday. The stock traded as high as $6.88 and last traded at $7.0250. 1,560,571 shares changed hands during trading, a decline of 19% from the average session volume of 1,920,893 shares. The stock had previously closed at $6.28.

Wall Street Analysts Forecast Growth

Several research firms have weighed in on AHCO. Jefferies Financial Group upgraded shares of AdaptHealth from a "hold" rating to a "buy" rating and increased their target price for the stock from $11.00 to $13.00 in a report on Tuesday, July 21st. Weiss Ratings reaffirmed a "sell (d)" rating on shares of AdaptHealth in a research report on Wednesday, August 19th. Wall Street Zen cut shares of AdaptHealth from a "hold" rating to a "sell" rating in a research note on Sunday, August 16th. Robert W. Baird cut their price target on AdaptHealth from $10.00 to $9.00 and set an "outperform" rating for the company in a report on Thursday, September 17th. Finally, Truist Financial decreased their price target on shares of AdaptHealth from $14.00 to $9.00 and set a "buy" rating on the stock in a research note on Wednesday, August 5th. Seven analysts have rated the stock with a Buy rating, one has assigned a Hold rating and one has assigned a Sell rating to the company. Based on data from MarketBeat.com, the company has an average rating of "Moderate Buy" and a consensus target price of $10.14.

AdaptHealth Trading Up 18.4%

The company has a quick ratio of 0.98, a current ratio of 1.12 and a debt-to-equity ratio of 1.37. The firm has a 50 day moving average price of $5.90 and a two-hundred day moving average price of $9.12. The company has a market cap of $1.01 billion, a price-to-earnings ratio of -4.34 and a beta of 1.36.

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

Insider Buying and Selling

In other news, Director Kenneth Samet bought 23,500 shares of the stock in a transaction on Thursday, August 6th. The shares were purchased 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 directly owned 48,569 shares in the company, valued at $309,870.22. This represents a 93.74% increase in their position. The transaction was disclosed in a legal filing with the SEC, which is accessible through this link. Corporate insiders own 1.95% of the company's stock.

Institutional Investors Weigh In On AdaptHealth

Institutional investors have recently made changes to their positions in the stock. Rockefeller Capital Management L.P. raised its position in AdaptHealth by 433.0% in 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 during the period. Public Employees Retirement System of Ohio purchased a new position in AdaptHealth in the second quarter worth about $56,000. Brickley Wealth Management bought a new position in AdaptHealth during the 3rd quarter valued at about $56,000. Citizens Financial Group Inc. RI bought a new stake in shares of AdaptHealth in the third quarter worth $69,000. Finally, Assetmark Inc. boosted its stake 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 acquiring an additional 2,460 shares during the last quarter. Hedge funds and other institutional investors own 82.67% of the company's stock.

About AdaptHealth

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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