What Happened?
Shares of healthcare services company Agilon Health (NYSE: AGL) fell 6.8% in the afternoon session after the company received a non-compliance notice from the New York Stock Exchange because its stock price fell below listing standards.
The notice was issued after the stock's average closing price remained below $1.00 over a continuous 30-day period. This development followed the company's recent third-quarter report, which revealed a larger-than-expected loss. To address the potential delisting, agilon health stated it planned to seek a reverse stock split, which would need approval from its stockholders. The company was given a six-month period to regain compliance. Compounding the negative sentiment, a Barclays analyst had also lowered the price target on the stock in the previous session.
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What Is The Market Telling Us
agilon health’s shares are extremely volatile and have had 77 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business.
The previous big move we wrote about was 2 days ago when the stock gained 16.4% on the news that the company reported decent third-quarter results that beat revenue expectations but fell significantly short on profitability. The healthcare services company posted revenue of $1.44 billion, marking a 1.1% decline year over year but narrowly surpassing analyst estimates. However, the bottom line painted a different picture, with a GAAP loss of $0.27 per share, missing the consensus estimate of a $0.17 loss. Guidance for the full year was also mixed; while the revenue forecast was in line with expectations, the outlook for full-year adjusted EBITDA was well below analyst projections. Despite the significant profitability miss, investors appeared to focus on the top-line beat and stable revenue guidance, sending the shares higher.
agilon health is down 65.1% since the beginning of the year, and at $0.67 per share, it is trading 88.2% below its 52-week high of $5.68 from April 2025. Investors who bought $1,000 worth of agilon health’s shares at the IPO in April 2021 would now be looking at an investment worth $21.60.
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