Hey everyone, any $MODV investors here? If you’ve been keeping up with ModivCare, you probably saw their financial struggles and the massive stock drop that came after. If not, here’s a recap of what happened and the latest updates.
Over the past two years, ModivCare assured investors that its non-emergency medical transportation contracts were financially stable, emphasizing that shifting to shared-risk agreements would protect profit margins and ensure steady cash flow.
However, the company’s cash flow worsened in 2023 and 2024 due to contract renegotiations, pricing changes, and rising costs (even though the company claimed otherwise, btw).
Then, last September, the company finally admitted it was facing serious liquidity problems and needed to raise additional capital just to keep operating.
When the news came out, $MODV plummeted 59%.
And, days later, ModivCare cut its earnings forecast, revealing that contract pricing adjustments had severely hurt profits, triggering another 10% stock drop.
After all this, investors are filing a lawsuit against ModivCare.
So, for those affected, you can check the details.
Anyways, did you invest in $MODV? How much were your losses if so?
https://ift.tt/FWvlPAe Submitted March 18, 2025 at 03:08AM by Financial-Stick-8500 https://ift.tt/rYAvipg