5 Small-Cap Stocks With Insider Buying

2. ModivCare Inc. (NASDAQ:MODV)

Number of Hedge Fund Holders: 18

ModivCare Inc. (NASDAQ:MODV) is a technology-led healthcare services company that operates through Non-Emergency Medical Transportation (NEMT), Personal Care, Remote Patient Monitoring (RPM), and Corporate and Other segments. In the beginning of December 2022, a director at ModivCare Inc. (NASDAQ:MODV) purchased 90,743 shares of the company priced at $76 each. As of March 10, 2023 the shares trade at $85.72, indicating a return of 12.78% since the director purchased the company shares.

On February 24, Deutsche Bank analyst Pito Chickering raised the firm’s price target on ModivCare Inc. (NASDAQ:MODV) to $120 from $100 and maintained a Buy rating on the shares following the Q4 results. The analyst sees an attractive setup for the shares into 2024.

According to Insider Monkey’s Q4 data, 18 hedge funds were long ModivCare Inc. (NASDAQ:MODV), compared to 19 funds in the preceding quarter.

Here is what Summers Value Partners has to say about ModivCare Inc. (NASDAQ:MODV) in its Q4 2021 investor letter:

“The biggest detractor in the fourth quarter was Modivcare (MODV), which was pressured by tightness in the labor market and two ill-advised acquisitions. We began trimming our position in Modivcare in the fall and recently exited the position entirely. When we first underwrote our investment in Modivcare almost two years ago, the company had a dominant position in its core non-emergency medical transportation market and a completely un-levered balance sheet. The risk/reward changed dramatically after the company overpaid for several acquisitions in 2021, leaving the company with too much debt for our comfort level especially considering the headwinds now facing the business.”