InnovAge (NASDAQ:INNV) Stock Breaks Below Two Hundred Day Moving Average - Time to Sell?

Key Points

• InnovAge shares fell below their 200-day moving average, trading as low as $8.85 versus the $9.05 average, and were last quoted at $8.92.
• Analyst sentiment is mixed but leans negative: the stock has a consensus “Reduce” rating and a $10.50 average price target, despite KeyCorp raising its target to $14 and maintaining an “overweight” rating.
• Insiders sold more than 13 million shares worth about $120.5 million over the past 90 days, while the company’s latest quarter modestly missed earnings expectations despite exceeding revenue estimates.

InnovAge Holding Corp. (NASDAQ:INNV - Get Free Report) shares crossed below its two hundred day moving average during trading on Monday. The stock has a two hundred day moving average of $9.05 and traded as low as $8.85. InnovAge shares last traded at $8.92, with a volume of 535,206 shares traded.

Analyst Upgrades and Downgrades

Several research analysts have recently commented on the company. KeyCorp raised their price objective on InnovAge from $13.00 to $14.00 and gave the stock an "overweight" rating in a research note on Wednesday, September 9th. Weiss Ratings reiterated a "sell (d-)" rating on shares of InnovAge in a research note on Thursday, August 13th. Finally, Wall Street Zen lowered shares of InnovAge from a "strong-buy" rating to a "buy" rating in a report on Sunday, October 18th. One research analyst has rated the stock with a Buy rating, one has assigned a Hold rating and two have assigned a Sell rating to the company's stock. Based on data from MarketBeat.com, InnovAge has a consensus rating of "Reduce" and an average target price of $10.50.

InnovAge Stock Down 2.9%

The stock has a market capitalization of $1.22 billion, a P/E ratio of -446.00 and a beta of 0.15. The company's 50-day moving average price is $9.80 and its 200 day moving average price is $9.05. The company has a debt-to-equity ratio of 0.23, a quick ratio of 1.05 and a current ratio of 1.05.

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

Insider Buying and Selling at InnovAge

In other news, major shareholder Carson Anderson & Stow Welsh sold 1,500,000 shares of the company'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 completion of the transaction, the insider owned 101,076,555 shares of the company's stock, valued at $934,958,133.75. This represents a 1.46% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available at this hyperlink. Also, major shareholder Aggregator Lp Ignite sold 1,500,000 shares of the 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 sale, the insider owned 101,076,555 shares of the company's stock, valued at $934,958,133.75. This represents a 1.46% decrease in their position. The SEC filing for this sale provides additional information. Insiders have sold a total of 13,027,216 shares of company stock valued at $120,489,535 over the last ninety days. 1.10% of the stock is currently owned by company insiders.

Institutional Inflows and Outflows

A number of large investors have recently added to or reduced their stakes in INNV. Arlington Capital Management INC grew its holdings in InnovAge by 5.2% during the 3rd quarter. Arlington Capital Management INC now owns 31,244 shares of the company's stock valued at $275,000 after buying an additional 1,546 shares in the last quarter. State of Wyoming purchased a new position in shares of InnovAge in the third quarter worth $496,000. Argent Capital Management LLC purchased a new position in shares of InnovAge in the third quarter worth $652,000. Arlington Capital Management Inc. purchased a new position in shares of InnovAge in the second quarter worth $352,000. Finally, NewEdge Advisors LLC bought a new position in shares of InnovAge during the second quarter worth $142,000. 12.26% of the stock is owned by hedge funds and other institutional investors.

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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