Cracking The Code: Understanding Analyst Reviews For ModivCare

In the last three months, 4 analysts have published ratings on ModivCare MODV, offering a diverse range of perspectives from bullish to bearish.

Summarizing their recent assessments, the table below illustrates the evolving sentiments in the past 30 days and compares them to the preceding months.

Providing deeper insights, analysts have established 12-month price targets, indicating an average target of $24.5, along with a high estimate of $35.00 and a low estimate of $14.00. A decline of 33.19% from the prior average price target is evident in the current average.

Diving into Analyst Ratings: An In-Depth Exploration

In examining recent analyst actions, we gain insights into how financial experts perceive ModivCare. The following summary outlines key analysts, their recent evaluations, and adjustments to ratings and price targets.

Key Insights:

• Action Taken: Analysts adapt their recommendations to changing market conditions and company performance. Whether they 'Maintain', 'Raise' or 'Lower' their stance, it reflects their response to recent developments related to ModivCare. This information provides a snapshot of how analysts perceive the current state of the company.
• Rating: Analysts assign qualitative assessments to stocks, ranging from 'Outperform' to 'Underperform'. These ratings convey the analysts' expectations for the relative performance of ModivCare compared to the broader market.
• Price Targets: Analysts navigate through adjustments in price targets, providing estimates for ModivCare's future value. Comparing current and prior targets offers insights into analysts' evolving expectations.

Assessing these analyst evaluations alongside crucial financial indicators can provide a comprehensive overview of ModivCare's market position. Stay informed and make well-judged decisions with the assistance of our Ratings Table.

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Get to Know ModivCare Better

ModivCare Inc is a technology-enabled healthcare services company that provides a suite of integrated supportive care solutions for payors and their members. The company is also a provider of non-emergency medical transportation, or NEMT, personal care, and remote patient monitoring, or RPM, solutions, which serve similar, highly vulnerable patient populations. Its operating segment includes NEMT, Personal Care, and Remote Patient Monitoring. The company generates maximum revenue from the NEMT segment.

Understanding the Numbers: ModivCare's Finances

Market Capitalization Analysis: Positioned below industry benchmarks, the company's market capitalization faces constraints in size. This could be influenced by factors such as growth expectations or operational capacity.

Negative Revenue Trend: Examining ModivCare's financials over 3 months reveals challenges. As of 30 June, 2024, the company experienced a decline of approximately -0.12% in revenue growth, reflecting a decrease in top-line earnings. As compared to competitors, the company encountered difficulties, with a growth rate lower than the average among peers in the Health Care sector.

Net Margin: The company's net margin is a standout performer, exceeding industry averages. With an impressive net margin of -18.46%, the company showcases strong profitability and effective cost control.

Return on Equity (ROE): ModivCare's ROE is below industry standards, pointing towards difficulties in efficiently utilizing equity capital. With an ROE of -177.34%, the company may encounter challenges in delivering satisfactory returns for shareholders.

Return on Assets (ROA): ModivCare's ROA is below industry averages, indicating potential challenges in efficiently utilizing assets. With an ROA of -7.49%, the company may face hurdles in achieving optimal financial returns.

Debt Management: ModivCare's debt-to-equity ratio stands notably higher than the industry average, reaching 127.23. This indicates a heavier reliance on borrowed funds, raising concerns about financial leverage.

Understanding the Relevance of Analyst Ratings

Ratings come from analysts, or specialists within banking and financial systems that report for specific stocks or defined sectors (typically once per quarter for each stock). Analysts usually derive their information from company conference calls and meetings, financial statements, and conversations with important insiders to reach their decisions.

Analysts may supplement their ratings with predictions for metrics like growth estimates, earnings, and revenue, offering investors a more comprehensive outlook. However, investors should be mindful that analysts, like any human, can have subjective perspectives influencing their forecasts.

This article was generated by Benzinga's automated content engine and reviewed by an editor.