AdaptHealth (NASDAQ:AHCO) Reaches New 1-Year Low – Should You Sell?

AdaptHealth Corp. (NASDAQ:AHCO)’s stock price reached a new 52-week low during trading on Tuesday . The company traded as low as $6.79 and last traded at $6.9060, with a volume of 429979 shares trading hands. The stock had previously closed at $10.83.

Key Stories Impacting AdaptHealth

Here are the key news stories impacting AdaptHealth this week:

• Positive Sentiment: AdaptHealth agreed to sell its Diabetes Health business to Cardinal Health for approximately $235 million in cash. The transaction could provide liquidity and allows the company to concentrate on its core sleep and respiratory-care operations, although the sale is subject to customary adjustments and closing conditions. AdaptHealth: Fixed-Price Contracts Create Too Much Risk
• Neutral Sentiment: Some insider and institutional activity indicates continued interest in the stock, including reported purchases by executives and several institutional investors. However, these transactions do not offset the company’s deteriorating operating outlook.
• Negative Sentiment: Second-quarter results missed expectations by a wide margin. Reported revenue was approximately $740.3 million, below analysts’ estimate of about $846.8 million, while the company posted a $0.99 per-share loss versus consensus expectations for a $0.17 profit. Net loss reached $145.3 million, primarily because of a $144.2 million goodwill impairment, and adjusted EBITDA declined year over year. AdaptHealth Second-Quarter Earnings Report
• Negative Sentiment: Management significantly reduced its full-year outlook. Revenue guidance was set at approximately $2.85 billion to $2.89 billion, well below the roughly $3.5 billion analyst estimate, while adjusted EBITDA guidance was cut from $680 million–$730 million to approximately $490 million–$520 million. The revisions reinforce concerns about slower growth and weaker profitability. AdaptHealth Investigation Notice
• Negative Sentiment: New West Coast capitated, fixed-price contracts have created substantial margin pressure, with management citing approximately $55 million of negative impact and transition complexity. Year-to-date operating cash flow also declined, while free cash flow turned negative.
• Negative Sentiment: Several law firms announced investigations into whether AdaptHealth violated federal securities laws by allegedly providing misleading or incomplete information about its financial performance and outlook. The announcements are investor solicitations rather than findings of wrongdoing, but they add legal and reputational risk. Securities Fraud Investigation Announcement

Wall Street Analyst Weigh In

AHCO has been the topic of several recent analyst reports. Royal Bank Of Canada boosted their target price on shares of AdaptHealth from $13.00 to $15.00 and gave the company an “outperform” rating in a report on Monday, May 11th. Truist Financial dropped their price objective on AdaptHealth from $14.00 to $9.00 and set a “buy” rating on the stock in a research note on Wednesday. Canaccord Genuity Group set a $10.00 target price on AdaptHealth in a research note on Wednesday. Jefferies Financial Group upgraded AdaptHealth from a “hold” rating to a “buy” rating and lifted their target price for the stock from $11.00 to $13.00 in a report on Tuesday, July 21st. Finally, UBS Group cut their price target on AdaptHealth from $15.00 to $14.00 and set a “buy” rating on the stock in a report on Wednesday, May 6th. Seven investment analysts have rated the stock with a Buy rating, one has assigned a Hold rating and one has given a Sell rating to the stock. According to MarketBeat, AdaptHealth presently has an average rating of “Moderate Buy” and a consensus target price of $11.86.

AdaptHealth Stock Down 3.3%

The company has a market cap of $882.09 million, a P/E ratio of -3.80, a PEG ratio of 0.34 and a beta of 1.47. The stock’s 50-day moving average price is $10.14 and its 200-day moving average price is $10.62. The company has a current ratio of 1.12, a quick ratio of 0.71 and a debt-to-equity ratio of 1.37.

Insider Transactions at AdaptHealth

In other AdaptHealth news, insider Russell E. Schuster III sold 11,275 shares of the stock in a transaction that occurred on Monday, June 1st. The stock was sold at an average price of $10.06, for a total value of $113,426.50. Following the transaction, the insider owned 136,538 shares in the company, valued at approximately $1,373,572.28. This represents a 7.63% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders own 1.95% of the company’s stock.

Institutional Investors Weigh In On AdaptHealth

Hedge funds and other institutional investors have recently modified their holdings of the company. SG Americas Securities LLC increased its position in shares of AdaptHealth by 386.3% during the fourth quarter. SG Americas Securities LLC now owns 78,141 shares of the company’s stock worth $778,000 after acquiring an additional 62,073 shares in the last quarter. Reinhart Partners LLC. lifted its position in AdaptHealth by 10.6% in the 4th quarter. Reinhart Partners LLC. now owns 8,100,785 shares of the company’s stock valued at $80,684,000 after acquiring an additional 773,727 shares in the last quarter. Kennedy Capital Management LLC lifted its position in AdaptHealth by 15.2% in the 4th quarter. Kennedy Capital Management LLC now owns 2,408,038 shares of the company’s stock valued at $23,984,000 after acquiring an additional 317,900 shares in the last quarter. Arrowstreet Capital Limited Partnership boosted its stake in AdaptHealth by 87.7% during the 1st quarter. Arrowstreet Capital Limited Partnership now owns 847,085 shares of the company’s stock valued at $10,080,000 after purchasing an additional 395,668 shares during the last quarter. Finally, Principal Financial Group Inc. boosted its stake in AdaptHealth by 25.1% during the 1st quarter. Principal Financial Group Inc. now owns 2,784,316 shares of the company’s stock valued at $33,133,000 after purchasing an additional 558,357 shares during the last quarter. Institutional investors own 82.67% of the company’s stock.

About AdaptHealth

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.