AdaptHealth (NASDAQ:AHCO) Trading Up 8.3% on Insider Buying Activity

AdaptHealth Corp. (NASDAQ:AHCO)’s stock price was up 8.3% during trading on Tuesday following insider buying activity. The stock traded as high as $11.13 and last traded at $11.2350. 450,296 shares traded hands during mid-day trading, a decline of 64% from the average daily volume of 1,247,154 shares. The stock had previously closed at $10.37.

Specifically, major shareholder Richard M. Cashin, Jr. purchased 447,100 shares of the company’s stock in a transaction dated Friday, March 20th. The shares were purchased at an average cost of $9.91 per share, with a total value of $4,430,761.00. Following the transaction, the insider directly owned 16,312,698 shares in the company, valued at $161,658,837.18. This trade represents a 2.82% increase in their position. The purchase was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this link.

Analysts Set New Price Targets

A number of brokerages have issued reports on AHCO. Royal Bank Of Canada reiterated an “outperform” rating and set a $13.00 price objective on shares of AdaptHealth in a research note on Wednesday, February 25th. Weiss Ratings downgraded AdaptHealth from a “hold (c-)” rating to a “sell (d)” rating in a report on Wednesday, February 25th. Zacks Research raised AdaptHealth from a “strong sell” rating to a “hold” rating in a research report on Thursday, January 1st. Wall Street Zen cut shares of AdaptHealth from a “buy” rating to a “hold” rating in a research note on Saturday, February 28th. Finally, Leerink Partners cut their price objective on shares of AdaptHealth from $13.00 to $12.00 and set an “outperform” rating on the stock in a research report on Thursday, February 26th. Four equities research analysts have rated the stock with a Buy rating, one has issued a Hold rating and one has issued a Sell rating to the company. According to MarketBeat, AdaptHealth currently has a consensus rating of “Moderate Buy” and a consensus price target of $13.25.

Key AdaptHealth News

Here are the key news stories impacting AdaptHealth this week:

• Positive Sentiment: Major insider buy — Richard M. Cashin, Jr. purchased 447,100 shares at an average price of $9.91 on March 20, increasing his stake to ~16.31M shares (a ~2.8% increase). Large insider purchases are typically viewed as a vote of confidence by a controlling shareholder. Insider Buying: AdaptHealth Major Shareholder Purchases 447,100 Shares Adapthealth corp: Richard Cashin buys $4.4m in AHCO stock
• Neutral Sentiment: Analyst and institutional backdrop — mixed analyst moves (RBC and Leerink on the bullish side, Wall Street Zen/Weiss more cautious) but MarketBeat consensus remained around a “Moderate Buy” with a ~$13.25 target; long-term institutional ownership is high (~82.7%), which can limit free float and amplify moves.
• Negative Sentiment: Elevated and inconsistent short-interest prints — one report shows short interest rose to ~9.04M shares as of March 13 (up 22.5% from Feb. 26), representing ~6.8% shorted and a ~5.1 days-to-cover figure — a meaningful short position that can pressure the stock and raise volatility. However, multiple subsequent data entries show 0 shares/NaN (clearly erroneous), so short-interest figures are currently inconsistent across data vendors; the mixed prints themselves can generate trading noise and confusion for investors.

AdaptHealth Price Performance

The firm has a fifty day moving average of $10.11 and a 200 day moving average of $9.74. The company has a current ratio of 1.02, a quick ratio of 0.81 and a debt-to-equity ratio of 1.15. The company has a market capitalization of $1.56 billion, a P/E ratio of -20.87, a P/E/G ratio of 1.19 and a beta of 1.76.

AdaptHealth (NASDAQ:AHCO) last posted its earnings results on Tuesday, February 24th. The company reported ($0.76) earnings per share (EPS) for the quarter, missing the consensus estimate of $0.34 by ($1.10). The company had revenue of $846.29 million for the quarter, compared to the consensus estimate of $832.51 million. AdaptHealth had a negative net margin of 2.18% and a positive return on equity of 3.42%. AdaptHealth’s revenue was down 1.2% on a year-over-year basis. During the same quarter in the prior year, the company posted $0.34 EPS. On average, equities research analysts anticipate that AdaptHealth Corp. will post 0.88 EPS for the current year.

Institutional Investors Weigh In On AdaptHealth

Several institutional investors and hedge funds have recently added to or reduced their stakes in AHCO. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. boosted its stake in AdaptHealth by 4.4% in the 1st quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 60,495 shares of the company’s stock worth $656,000 after purchasing an additional 2,564 shares during the period. Goldman Sachs Group Inc. grew its holdings in AdaptHealth by 32.4% during the 1st quarter. Goldman Sachs Group Inc. now owns 571,232 shares of the company’s stock valued at $6,192,000 after buying an additional 139,828 shares in the last quarter. Woodline Partners LP purchased a new position in AdaptHealth during the 1st quarter valued at approximately $2,851,000. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC increased its stake in AdaptHealth by 18.1% in the 1st quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 233,780 shares of the company’s stock worth $2,534,000 after acquiring an additional 35,879 shares during the last quarter. Finally, Commonwealth of Pennsylvania Public School Empls Retrmt SYS raised its holdings in shares of AdaptHealth by 6.6% during the 2nd quarter. Commonwealth of Pennsylvania Public School Empls Retrmt SYS now owns 27,095 shares of the company’s stock worth $256,000 after acquiring an additional 1,671 shares in the last quarter. Hedge funds and other institutional investors own 82.67% of the company’s stock.

AdaptHealth Company Profile

AdaptHealth, Inc operates as a leading provider of home medical equipment (HME) and related services in the United States. The company focuses on delivering respiratory care, mobility solutions and bathroom safety products to patients with chronic and acute medical needs. Through its comprehensive service offerings, AdaptHealth aims to enhance quality of life and clinical outcomes for patients who require long-term support outside of a hospital setting.

The company’s respiratory portfolio includes products such as continuous positive airway pressure (CPAP) devices, oxygen concentrators, ventilators, and associated supplies for patients with sleep apnea, COPD and other pulmonary conditions.