Coliseum Capital Management, LLC (Trades, Portfolio), a prominent investment firm, recently increased its holdings in ModivCare Inc (MODV, Financial), a leading healthcare services company. This article provides an in-depth analysis of the transaction, the guru's profile, and the traded company's basic information. The data used in this article is accurate as of August 11, 2023.
Details of the Transaction
On August 10, 2023, Coliseum Capital Management, LLC (Trades, Portfolio) added 2,264,129 shares of ModivCare Inc to its portfolio at a trade price of $35.74 per share. This transaction significantly impacted the firm's portfolio by 5.78%, increasing its total holdings in ModivCare Inc to 4,162,924 shares. This represents 10.62% of the firm's portfolio and 29.36% of ModivCare Inc's total shares.
Profile of the Guru: Coliseum Capital Management, LLC (Trades, Portfolio)
Coliseum Capital Management, LLC (Trades, Portfolio) is a Stamford, CT-based investment firm with a diverse portfolio. The firm holds 12 stocks, with a total equity of $1.32 billion. Its top holdings include Purple Innovation Inc (PRPL, Financial), ModivCare Inc (MODV, Financial), Gildan Activewear Inc (GIL, Financial), GMS Inc (GMS, Financial), and Sonos Inc (SONO, Financial). The firm is heavily invested in the Consumer Cyclical and Industrials sectors. 
Overview of ModivCare Inc
ModivCare Inc, a US-based company, provides a suite of integrated supportive care solutions for payors and their members. The company operates in three segments: Non-Emergency Medical Transportation (NEMT), Personal Care, and Remote Patient Monitoring (RPM). As of August 11, 2023, the company has a market capitalization of $583.985 million and a stock price of $41.18. However, the company's PE percentage is currently not applicable, indicating that it is at a loss. According to GuruFocus, the company's GF Value is 154.29, suggesting that the stock may be a possible value trap. 
Analysis of ModivCare Inc's Stock Performance
Since the transaction, ModivCare Inc's stock has gained 15.22%. Since its IPO in 2003, the stock has increased by 216.77%. However, the stock's year-to-date price change ratio is -55.23%. According to the GF Score, the stock has a score of 70 out of 100, indicating a poor future performance potential. The company's Financial Strength and Profitability Rank are 4/10 and 7/10 respectively, while its Growth Rank is 10/10.
Financial Health of ModivCare Inc
ModivCare Inc's financial health can be assessed using several metrics. The company's Piotroski F-Score is 2, and its Altman Z score is 1.30. The company's cash to debt ratio is 0.01, and its interest coverage is 0.54. The company's ROE and ROA are -71.84 and -11.85 respectively. Over the past three years, the company's gross margin has grown by 22.20%, and its operating margin has grown by 6.00%. However, its earnings have declined by -46.40%.
ModivCare Inc's Stock Momentum and Predictability
ModivCare Inc's stock momentum can be assessed using several metrics. The stock's RSI 5-day, 9-day, and 14-day values are 38.42, 35.01, and 34.99 respectively. The stock's momentum index 6 - 1 month and 12 - 1 month are -53.67 and -56.11 respectively. However, the stock's predictability rank is currently not available.
Conclusion
In conclusion, Coliseum Capital Management, LLC (Trades, Portfolio)'s recent acquisition of ModivCare Inc shares has significantly impacted its portfolio. Despite the company's current financial challenges, the firm's investment could yield significant returns if ModivCare Inc's financial performance improves. This transaction provides valuable insights for value investors interested in the healthcare services sector.
