On September 12, 2023, Coliseum Capital Management, LLC (Trades, Portfolio) made a significant addition to its portfolio by acquiring 522,5344 shares of ModivCare Inc (MODV, Financial). The transaction saw the firm increase its stake by 558,219 shares, representing a trade change of 11.96%. This move had a 1.48% impact on the firm's portfolio, with the shares being purchased at a price of $29.82 each. The firm now holds a 13.84% position in ModivCare Inc, accounting for 36.85% of the company's total shares.
About Coliseum Capital Management, LLC (Trades, Portfolio)
Coliseum Capital Management, LLC (Trades, Portfolio) is a Stamford, Connecticut-based investment firm. The firm's portfolio consists of 12 stocks, with a total equity of $1.11 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's investment strategy is primarily focused on the Consumer Cyclical and Industrials sectors. 
ModivCare Inc: A Closer Look
ModivCare Inc, a US-based healthcare services company, provides a suite of integrated supportive care solutions for payors and their members. The company operates in the Non-Emergency Medical Transportation (NEMT), Personal Care, and Remote Patient Monitoring (RPM) segments. As of the date of this article, the company has a market capitalization of $414.802 million and a stock price of $29.25. However, the company's PE percentage is currently at 0.00, indicating that it is operating at a loss. According to GuruFocus's GF Valuation, the stock is potentially a value trap, with a GF Value of 154.71 and a price to GF Value ratio of 0.19. 
Performance and Financial Health of ModivCare Inc
Since its IPO in 2003, ModivCare Inc has seen a price change of 125%. However, the year-to-date price change ratio stands at -68.2%. The company's GF Score is 70/100, indicating poor future performance potential. The company's financial strength is ranked 4/10, while its profitability rank is 7/10. The growth rank stands at 10/10, but the GF Value Rank is only 2/10. The company's momentum rank is 1/10, indicating a lack of momentum in the stock's price.
ModivCare Inc's financial health is a concern, with a Piotroski F-Score of 2 and an Altman Z score of 1.26. The company's cash to debt ratio is 0.01, ranking it 636th in the industry. The company's ROE and ROA stand at -71.84 and -11.85 respectively, ranking it 531st and 486th in the industry. However, the company has seen a gross margin growth of 22.20% and an operating margin growth of 6.00%.
ModivCare Inc's Momentum
The company's RSI 5 Day, RSI 9 Day, and RSI 14 Day stand at 41.95, 37.78, and 37.04 respectively. The momentum index for 6 - 1 month is -51.06, and for 12 - 1 month is -63.21. The RSI 14 Day rank is 127, and the momentum index 6 - 1 month rank is 622.
Conclusion
In conclusion, Coliseum Capital Management, LLC (Trades, Portfolio)'s recent acquisition of ModivCare Inc shares represents a significant addition to its portfolio. However, the performance and financial health of ModivCare Inc raise concerns about the potential return on this investment. The company's low GF Score, poor financial strength, and lack of momentum suggest that it may struggle to deliver significant returns in the future. Investors should monitor this stock closely and consider the potential risks associated with it.
