InnovAge (NASDAQ:INNV) Shares Gap Down - Should You Sell?

Key Points

• InnovAge shares fell sharply, opening at $9.73 versus a prior close of $10.65 and later trading near $9.61, representing a 13.8% decline.
• Analyst sentiment is mixed but leans negative: MarketBeat reports an average rating of “Reduce” and an average price target of $10.50, with two Sell, one Hold and one Buy rating.
• InnovAge slightly missed quarterly earnings expectations, reporting $0.06 per share versus $0.07 expected, although revenue of $261.95 million exceeded the $238.33 million consensus estimate.

InnovAge Holding Corp. (NASDAQ:INNV - Get Free Report) gapped down before the market opened on Wednesday . The stock had previously closed at $10.65, but opened at $9.73. InnovAge shares last traded at $9.6130, with a volume of 1,655,909 shares traded.

Analyst Upgrades and Downgrades

A number of equities analysts have commented on INNV shares. Weiss Ratings reiterated a "sell (d-)" rating on shares of InnovAge in a report on Thursday, August 13th. KeyCorp boosted their price objective 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. Finally, Wall Street Zen cut shares of InnovAge from a "strong-buy" rating to a "buy" rating in a research report on Sunday. One research analyst has rated the stock with a Buy rating, one has given a Hold rating and two have given a Sell rating to the stock. According to MarketBeat, the company has an average rating of "Reduce" and an average price target of $10.50.

InnovAge Stock Down 13.8%

The company has a debt-to-equity ratio of 0.23, a current ratio of 1.05 and a quick ratio of 1.05. The business's fifty day moving average price is $11.01 and its two-hundred day moving average price is $9.45. The stock has a market capitalization of $1.25 billion, a PE ratio of -461.55 and a beta of 0.40.

InnovAge (NASDAQ:INNV - Get Free Report) last posted its quarterly earnings results on Tuesday, September 8th. The company reported $0.06 earnings per share for the quarter, missing the consensus estimate of $0.07 by ($0.01). The firm had revenue of $261.95 million for the quarter, compared to analysts' expectations of $238.33 million. InnovAge had a negative net margin of 0.26% and a negative return on equity of 1.03%. On average, equities research analysts forecast that InnovAge Holding Corp. will post 0.43 EPS for the current fiscal year.

Institutional Investors Weigh In On InnovAge

A number of large investors have recently bought and sold shares of INNV. Arlington Capital Management Inc. purchased a new position in InnovAge during the 2nd quarter worth approximately $352,000. NewEdge Advisors LLC acquired a new stake in shares of InnovAge in the second quarter worth $142,000. Corient Private Wealth LP acquired a new stake in shares of InnovAge in the second quarter worth $218,000. Bank of America Corp DE purchased a new position in shares of InnovAge during the second quarter worth $354,000. Finally, Man Group plc acquired a new position in InnovAge during the second quarter valued at $702,000. Hedge funds and other institutional investors own 12.26% of the company's stock.

About InnovAge

InnovAge is a healthcare services company that provides comprehensive care for older adults through the Program of All-Inclusive Care for the Elderly (PACE). Its programs are designed for individuals who are eligible for nursing-home-level care but can continue living in their homes and communities with coordinated medical and support services.

The company's services include primary and specialty medical care, behavioral health, pharmacy services, rehabilitation, dentistry, social services, nutrition support, transportation and in-home care.

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