4. ModivCare Inc. (NASDAQ:MODV)
Number of Hedge Fund Holders: 15
ModivCare Inc. (NASDAQ:MODV) is a technology-enabled healthcare services company offering integrated supportive care solutions to public and private payors and their patients. The company’s value-based services address social determinants of health, enhance access to care, reduce costs, and improve outcomes. MODV is a leading provider of non-emergency medical transportation, personal care services, and remote patient monitoring. Additionally, the company holds a minority equity interest in Matrix Medical Network, which collaborates with health plans and providers nationwide to deliver a broad array of assessment and care management services aimed at improving health outcomes and financial performance.
ModivCare Inc. (NASDAQ:MODV) showed strong Q3 2024 results, driven by improvements in Personal Care Services, higher margins in Remote Patient Monitoring, and NEMT cost savings. The company has made significant progress in optimizing technology, automating contact center functions, and reducing NEMT unit costs through a multimodal network strategy. During the quarter, the company successfully collected $105 million in gross contract receivables, including $42 million from retrospective prepayment resets and $39 million from an early settlement with their largest MCO client. The company is transitioning many of its shared risk contracts to fee-for-service arrangements, which is expected to normalize working capital and free cash flow over the next 2-3 quarters.
Looking ahead, ModivCare Inc. (NASDAQ:MODV) expects 2025 adjusted EBITDA to increase approximately 10%, driven by membership growth, new contract wins, cost savings, and other strategic initiatives. However, the company faces headwinds in the Medicare Advantage space, with expectations of business contraction in 2025 as clients adjust their supplemental benefit spending. The company’s transformation across all segments has created a foundation for stability with technology, clinical capabilities, and customer engagement differentiations at scale, positioning it for sustainable growth. The optimistic outlook for the future is strengthened by at least two insiders purchasing more than $100,000 worth of MODV stock in the last six months.
