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InnovAge Lower 4th Straight Day, Targets Cut as Firm Drops Guidance -Breaking

by Mike Robinson

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© Reuters.

By Dhirendra Tripathi

Investing.com – InnovAge stock (NASDAQ:) stock tanked 12.5% Tuesday as last week’s shelving of the annual guidance by the company continues to rattle traders.

Since the December 23, 2015 move of the healthcare manager, the stock has been more than half off. This prompted many brokerages including Barclays to lower their price targets and ratings for the stock.

The company’s decision came after the Centers for Medicare and Medicaid Services (CMS) froze enrollment at its Colorado centers based on deficiencies detected in a focused audit.

Further aggravating matters, the Colorado Department of Health Care Policy and Financing issued additional sanctions.

CMS stated that suspension would remain in place until company rectifies the problems to its satisfaction.

A raft of downgrades followed the company’s decision to withdraw its guidance. StreetInsider reports that Jeff Garro, a Piper Sandler analyst, downgraded InnovAge from neutral to neutral with an estimate of $4. So did Goldman Sachs’ Jamie Perse with the same rating and a similar price target.

 

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