ModivCare Inc. (MODV) saw its stock price tumble by 10.77% to close at $15.90 on December 16, 2024, following a series of events that rattled investor confidence. The stock opened at $17.59, which was also its highest point of the day, before sliding to a low of $15.85. The trading volume was notably low at 177,276 shares, about 59.18% of the average daily volume, indicating a lack of strong buying interest to counter the selling pressure. The decline was primarily driven by news that Charles Schwab Investment Management Inc. reduced its stake in ModivCare by 16.7% during the third quarter, selling 29,579 shares. This move by a significant institutional investor likely raised concerns among other investors, contributing to the stock's downward trajectory.
Additionally, the stock has been under pressure from recent analyst actions. Jefferies Financial Group recently lowered its price target for ModivCare from $25.00 to $14.00, maintaining a "hold" rating. This adjustment, along with other analyst reports, has likely influenced investor sentiment negatively. The combination of institutional selling and cautious analyst outlooks has weighed heavily on ModivCare's stock performance.