Modivcare Inc. (MODV) has disclosed a new risk, in the Accounting & Financial Operations category.
Modivcare Inc. faces significant financial challenges due to extended collection periods from Medicare, Medicaid, and other payors, leading to uncertainty in cash flow and compliance with its financial covenants. This precarious situation raises substantial doubt about the company’s ability to meet its obligations within the next year, potentially impacting its stock price, capital raising capabilities, and stakeholder relationships. The company is exploring various measures to improve liquidity and sustain operations, though success is uncertain and may result in stockholder dilution. Failure to secure timely financial resources could severely affect Modivcare’s business and financial condition, posing risks of significant investment loss.
Overall, Wall Street has a Moderate Buy consensus rating on MODV stock based on 2 Buys and 1 Hold.
To learn more about Modivcare Inc.’s risk factors, click here.
