Join +750K new investors every month who copy stock picks from billionaire's portfoliosSign Up Free

agilon health Inc. Falls Following Citron Research Short Report

Published 07/27/2022, 03:14 PM
Updated 07/27/2022, 03:29 PM
© Reuters.  Agilon Health Inc. (AGL) Falls Following Citron Research Short Report

By Sam Boughedda

Shares of agilon health Inc (NYSE:AGL) fell over 5% Wednesday after Citron Research released a short report with a $5 per share price target.

agilon, which currently trades at over $25 per share, down over 2% at the time of writing, is "exploiting short-term loopholes in Medicare /Primary Care," according to Citron.

They outlined a further three key points for the short report, including the company having a business model "designed for abuse," its "history of abuse," and the company having a "nosebleed valuation relative to competitors."

"By signing up an Accountable Care Organization (ACO) to its platform, agilon can switch a senior citizen's level of healthcare without their permission. A practice that has caused a stir in the US healthcare system. This loophole has opened the door for private equity to try and arbitrage the health benefits of America's seniors and has been referred to as 'the biggest threat to Medicare you've never even heard of,'" said Citron.

"Citron believes this multi-billion-dollar loophole company will either not exist or be a fraction of itself five years from now as the government dynamically changes Medicare law and increases enforcement on these middlemen," they concluded.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.