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Investing.com – InnovAge stock (NASDAQ:INNV) stock tanked 12.5% Tuesday as last week’s shelving of the annual guidance by the company continues to rattle traders.
The stock has more than halved since the December 23 move by the healthcare manager that prompted several brokerages, including Barclays, to cut their ratings and price targets for the stock.
The company’s decision came after the Centers for Medicare and Medicaid Services (CMS) froze enrollment at its Colorado centers based on deficiencies detected in a focused audit.
To make matters worse for the company, the Colorado Department of Health Care Policy and Financing has also issued sanctions against the company.
CMS indicated that the suspension will remain in effect until the company remedies the deficiencies to its satisfaction.
A raft of downgrades followed the company’s decision to withdraw its guidance. According to StreetInsider, Piper Sandler analyst Jeff Garro downgraded InnovAge to neutral with a target of $4. So did Goldman Sachs’ Jamie Perse with the same rating and a similar price target.
