ModivCare Inc. (MODV) saw a significant price increase on January 15, 2025, closing at $7.12, up 20.07% from the previous day's close of $5.93. The stock opened at $6.23 and reached a high of $7.46, with a trading volume of 1,173,834 shares, which is 382.49% of its average daily volume. This surge comes despite a recent downgrade from Stephens, which slashed its price target from $17 to $7. The downgrade might have been expected to apply downward pressure, but the stock's sharp decline of 52.82% over the past week likely set the stage for a rebound as investors sought value in the heavily beaten-down stock.
The positive momentum was further fueled by insider buying activity, as disclosed on January 15th. Insider purchases often signal confidence in the company's future prospects, which can attract investor interest. This insider activity, combined with the stock's previous decline, likely contributed to the heightened trading activity and price surge observed today.