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Working Capital Challenges Affected ModivCare (MODV) in Q1

Aristotle Capital Boston, LLC, an investment advisor, released its “Small Cap Equity Strategy” first quarter 2024 investor letter. A copy of the same can be downloaded here. In the first quarter, the fund delivered a return of 3.96% net of fees (4.11% gross of fees) trailing the Russell 2000 Index’s 5.18% total return. Security selection detracted from the performance while allocation effects positively contributed. In addition, you can check the top 5 holdings of the fund to know its best picks in 2024.

Aristotle Capital Small Cap Equity Strategy highlighted stocks like ModivCare Inc. (NASDAQ:MODV), in the first quarter 2024 investor letter. ModivCare Inc. (NASDAQ:MODV) is a technology-enabled healthcare services company with a market capitalization of $391.937 million. The one-month return of ModivCare Inc. (NASDAQ:MODV) was 17.06%, and its shares lost 44.81% of their value over the last 52 weeks. On May 24, 2024, ModivCare Inc. (NASDAQ:MODV) stock closed at $27.58 per share.

Aristotle Capital Small Cap Equity Strategy stated the following regarding ModivCare Inc. (NASDAQ:MODV) in its first quarter 2024 investor letter:

“ModivCare Inc. (NASDAQ:MODV), a Colorado-based healthcare services company that provides non-emergency medical transportation (NEMT), homecare services, and remote monitoring to Medicaid and Medicare populations declined during the period amid working capital challenges and a slower than expected start to the year. We continue to maintain a position despite near-term challenges as we believe the longer-term fundamental outlook for the business remains attractive and that an upcoming monetization event should alleviate investor concerns regarding the company’s credit profile.”

A telemedicine consultation taking place with a doctor and a patient over video call.

ModivCare Inc. (NASDAQ:MODV) saw a 3% increase in first-quarter revenue, and its adjusted EBITDA of $32 million aligned with the guidance range. ModivCare Inc. (NASDAQ:MODV) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 18 hedge fund portfolios held ModivCare Inc. (NASDAQ:MODV) at the end of the first quarter which was 17 in the previous quarter.

Aristotle Small Cap Equity Strategy commented about ModivCare Inc. (NASDAQ:MODV) in its second quarter 2023 investor letter. In addition, please check out our hedge fund investor letters Q1 2024 page for more investor letters from hedge funds and other leading investors.

If you are looking for an AI stock that is as promising as Microsoft but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

READ NEXT: Michael Burry Is Selling These Stocks and A New Dawn Is Coming to US Stocks.

Disclosure: None. This article is originally published at Insider Monkey.

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