Modivcare sees $5.4 million inventory sale by Q International Capital Administration

FORT WORTH, Texas—Q International Capital Administration, L.P., a major stakeholder in ModivCare Inc (NASDAQ:MODV), lately reported a collection of transactions involving the corporate’s widespread inventory. In keeping with the newest SEC submitting, the agency offered shares amounting to a complete of roughly $5.4 million. These gross sales occurred at costs starting from $6.53 to $11.81 per share, with the inventory at present buying and selling close to its 52-week low of $6.32. InvestingPro evaluation signifies the inventory is at present undervalued, with analysts setting worth targets between $10 and $42.

The transactions have been executed on January 10 and January 13, 2025, and resulted in a discount of Q International’s holdings in ModivCare. Regardless of these gross sales, Q International additionally acquired extra shares price roughly $48,384 at a mean worth of $12.61 per share on January 10.

Q International Capital Administration, together with Q International Advisors, LLC, Renegade Swish, LLC, and Geoffrey Raynor, maintains a major possession stake in ModivCare, as indicated by their submitting standing as ten % homeowners. The transactions have been carried out beneath the direct possession of Q International Capital Administration.

In different current information, ModivCare Inc. introduced its third-quarter earnings, reporting income of $702 million and an adjusted EBITDA of $43 million. Regardless of a internet lack of $27 million, the corporate revised its adjusted EBITDA steerage for 2024 to between $170 million and $180 million. Moreover, ModivCare tasks a ten% enhance in adjusted EBITDA for 2025, pushed by membership progress and new contracts.

The corporate additionally disclosed vital modifications to its board, with Christopher S. Shackelton and Rahul Samant stepping down. The vacancies have been promptly stuffed by Leslie V. Norwalk as the brand new Interim Chair of the Board and the addition of two new impartial administrators, Craig Barbarosh and Neal Goldman.

Moreover, Lake Road Capital Markets considerably diminished the value goal for ModivCare shares to $10.00, a pointy decline from the earlier $30.00 goal, whereas reaffirming a Purchase ranking on the inventory. This adjustment follows ModivCare’s choice to withdraw its monetary steerage for the years 2024 and 2025 because of modifications in its enterprise and the broader market setting.

Lastly, ModivCare secured $75 million in extra financing from a few of its present lenders, who additionally agreed to supply aid from monetary covenants associated to the corporate’s debt ratios. This monetary buffer is anticipated to keep up ModivCare’s liquidity till at the least mid-year 2025, permitting the corporate the pliability to implement strategic actions, doubtlessly together with the sale of belongings. These are the current developments reflecting the corporate’s strategic positioning and operational effectivity.

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