Latest news with #AgilonHealth
Business Insider
2 days ago
- Business
- Business Insider
Bernstein Keeps Their Buy Rating on Agilon Health (AGL)
In a report released today, Lance Wilkes from Bernstein maintained a Buy rating on Agilon Health (AGL – Research Report), with a price target of $7.50. The company's shares closed today at $2.16. Confident Investing Starts Here: Easily unpack a company's performance with TipRanks' new KPI Data for smart investment decisions Receive undervalued, market resilient stocks right to your inbox with TipRanks' Smart Value Newsletter Wilkes covers the Healthcare sector, focusing on stocks such as UnitedHealth, Humana, and Elevance Health. According to TipRanks, Wilkes has an average return of -0.3% and a 42.86% success rate on recommended stocks. Currently, the analyst consensus on Agilon Health is a Hold with an average price target of $4.60.
Yahoo
20-05-2025
- Business
- Yahoo
AGL Q1 Earnings Call: Membership Declines, Technology Investments, and Cautious Outlook for 2025
Healthcare services company Agilon Health (NYSE:AGL) reported Q1 CY2025 results topping the market's revenue expectations , but sales fell by 4.5% year on year to $1.53 billion. The company expects next quarter's revenue to be around $1.47 billion, close to analysts' estimates. Its non-GAAP profit of $0.03 per share was $0.02 above analysts' consensus estimates. Is now the time to buy AGL? Find out in our full research report (it's free). Revenue: $1.53 billion vs analyst estimates of $1.51 billion (4.5% year-on-year decline, 1.8% beat) Adjusted EPS: $0.03 vs analyst estimates of $0.01 ($0.02 beat) Adjusted EBITDA: $20.57 million vs analyst estimates of $17.42 million (1.3% margin, 18.1% beat) The company slightly lifted its revenue guidance for the full year to $5.94 billion at the midpoint from $5.93 billion EBITDA guidance for the full year is -$75 million at the midpoint, above analyst estimates of -$78.29 million Operating Margin: -1.4%, in line with the same quarter last year Free Cash Flow was -$35.84 million compared to -$50.92 million in the same quarter last year Customers: 491,000, down from 527,000 in the previous quarter Market Capitalization: $1.01 billion Agilon Health's first quarter results were shaped by ongoing efforts to optimize its Medicare Advantage member base and improve operating efficiency. Management attributed the reported revenue and margin performance to disciplined growth, partner and payer exits, and execution on clinical initiatives, while acknowledging that persistent cost pressures—especially in inpatient and drug spending—remained a headwind. CEO Steve Sell noted, "These results reflect the benefit of our previously disclosed partnership and payer exits, continued execution on quality and clinical initiatives, and better payer contracting terms to reduce Medicare Part D exposure." Looking ahead, agilon health's forward guidance is influenced by expectations for a more stable operating environment and ongoing initiatives to lower risk exposure and enhance clinical quality. The company highlighted opportunities stemming from favorable regulatory changes in 2026 and continued investments in technology and clinical programs. Management characterized 2025 as a transition year, emphasizing its focus on profitability, cash management, and negotiating improved payer terms to support long-term financial stability. Management's commentary highlighted the deliberate approach to managing growth and risk, as well as the continued rollout of technology and clinical programs designed to support quality care and operational efficiency. Disciplined Membership Strategy: The company's focus remained on measured growth, with membership essentially flat year over year after deliberate market and payer exits. Management explained that these actions were intended to limit underwriting risk and prioritize profitability. Reduced Part D Exposure: Agilon health further decreased its exposure to Medicare Part D (the prescription drug benefit), with less than 30% of members now carrying Part D risk. Management described this as a key step in reducing variability in financial results, noting ongoing negotiations to lower this figure further in upcoming contract cycles. Technology and Data Platform Investments: The company continued to invest in technology, such as the integration of its mphrX acquisition and enhancements to data pipelines. These upgrades have improved data visibility and analytics, supporting care coordination and real-time performance tracking across clinical programs. Expansion of Clinical Pathways: Agilon health scaled its heart failure and palliative care programs, aiming for earlier disease detection and better chronic disease management. Management reported that the palliative care initiative led to a material increase in advanced illness management enrollment and a reduction in hospital admissions per 1,000 patients. Margin Management Initiatives: The company reported progress on quality incentive programs and clinical cost management, which are expected to drive financial improvements over time. Management stated that these initiatives would provide a stronger foundation for operating leverage and long-term performance, particularly as external cost trends stabilize. Management expects 2025 to be a year of financial transition, with profitability supported by a mix of cautious member growth, lower risk exposure, and investments in quality and technology. Contract Negotiations and Rate Environment: Upcoming payer contract renewals covering roughly half of the membership are expected to drive improved terms and lower Part D risk, with management citing the 2026 CMS (Centers for Medicare & Medicaid Services) rate notice as a meaningful positive catalyst for revenue yield and margin. Clinical Program Maturation: The rollout of disease management pathways for heart failure and palliative care is expected to show greater financial and clinical impact in 2026 and beyond, as patient identification and intervention efforts mature. Cost Control and Operating Discipline: Ongoing efforts to reduce supplemental benefit risk, optimize cash management, and leverage new data systems are seen as key to maintaining margin stability despite persistent utilization pressures in inpatient and drug costs. Stephen Baxter (Wells Fargo): Asked about the V-28 risk model transition's impact on 2025 and whether it differed from prior expectations. Management responded that risk adjustment impacts were in line with projections and that prior preparation minimized disruption. Elizabeth Anderson (Evercore ISI): Questioned lingering effects from previously exited markets on current results. CFO Jeff Schwaneke indicated that most negative development from exited markets was contained to 2024, with minimal ongoing impact. Jailendra Singh (Truist Securities): Sought clarity on how the favorable 2026 CMS rate notice will flow through to agilon's contracts and when renewal terms would be finalized. Management explained that percentage-of-premium contracts would benefit directly, with most renewals still in progress. Lisa Gill (JPMorgan): Inquired about medical cost trend visibility and the drivers of elevated inpatient and drug spending. Management detailed new data pipelines improving claims visibility, and noted that inpatient admissions were higher early in the quarter but moderated by March. Matthew Shea (Needham): Asked about the potential margin impact of new clinical programs in heart failure, dementia, and COPD. Management said these programs are in early stages, with costs reflected in 2025 and benefits expected to build in 2026. In the coming quarters, the StockStory team will be tracking (1) progress on payer contract negotiations and further reductions in Part D risk exposure; (2) measurable results from the expansion of heart failure and palliative care pathways, including their impact on hospital utilization; and (3) the company's ability to maintain cost discipline and improve forecasting accuracy through its enhanced data platform. Execution on these initiatives will shape agilon health's ability to stabilize margins and position for growth in 2026. agilon health currently trades at a forward price-to-sales ratio of 0.2×. Should you double down or take your chips? See for yourself in our free research report. Market indices reached historic highs following Donald Trump's presidential victory in November 2024, but the outlook for 2025 is clouded by new trade policies that could impact business confidence and growth. While this has caused many investors to adopt a "fearful" wait-and-see approach, we're leaning into our best ideas that can grow regardless of the political or macroeconomic climate. Take advantage of Mr. Market by checking out our Top 5 Growth Stocks for this month. This is a curated list of our High Quality stocks that have generated a market-beating return of 176% over the last five years. Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-micro-cap company Tecnoglass (+1,754% five-year return). Find your next big winner with StockStory today. Sign in to access your portfolio
Yahoo
07-05-2025
- Business
- Yahoo
Why agilon health (AGL) Stock Is Nosediving
What Happened? Shares of healthcare services company Agilon Health (NYSE:AGL) fell 24.9% in the afternoon session after the company reported weak first quarter 2025 results as new customer additions fell short. On the other hand, revenue and EBITDA for the full-year exceeded Wall Street's estimates. That said, with Medicare Advantage members down 6%, growth is clearly cooling. Zooming out, we think this was a decent quarter featuring some areas of strength but also some blemishes. The stock market overreacts to news, and big price drops can present good opportunities to buy high-quality stocks. Is now the time to buy agilon health? Access our full analysis report here, it's free. What The Market Is Telling Us agilon health's shares are extremely volatile and have had 78 moves greater than 5% over the last year. But moves this big are rare even for agilon health and indicate this news significantly impacted the market's perception of the business. The previous big move we wrote about was 29 days ago when the stock gained 29.9% on the news that Bernstein upgraded the stock's rating from Hold to Buy with a price target of $8.5. The firm noted that new data on AGL drove increased confidence in its turnaround plans and cash position. agilon health is up 84.1% since the beginning of the year, but at $3.54 per share, it is still trading 53% below its 52-week high of $7.52 from July 2024. Investors who bought $1,000 worth of agilon health's shares at the IPO in April 2021 would now be looking at an investment worth $114.03. Here at StockStory, we certainly understand the potential of thematic investing. Diverse winners from Microsoft (MSFT) to Alphabet (GOOG), Coca-Cola (KO) to Monster Beverage (MNST) could all have been identified as promising growth stories with a megatrend driving the growth. So, in that spirit, we've identified a relatively under-the-radar profitable growth stock benefiting from the rise of AI, available to you FREE via this link.
Yahoo
12-04-2025
- Business
- Yahoo
Why Agilon Health Inc. (AGL) Went Up On Thursday?
We recently published a list of . In this article, we are going to take a look at where Agilon Health Inc. (NYSE:AGL) stands against other Thursday's best performers. Investors sold off positions on Thursday, sending the stock market tumbling anew following President Donald Trump's announcement that he had actually raised tariffs on Chinese goods by 145 percent since taking office. Among all major indices, the Nasdaq was battered the most, losing 4.31 percent. The S&P 500 followed with a 3.46-percent drop while the Dow Jones came in last, down 2.50 percent. Meanwhile, 10 companies bucked a broader market decline, registering modest gains during the session. In this article, we have listed Thursday's 10 best performers and detailed the reasons behind their gains. To come up with the list, we considered only the stocks with a $2 billion market capitalization and $5 million trading volume. A doctor in scrubs interacting with a Medicare Advantage member in her home. Agilon Health jumped by 6.18 percent on Thursday to end at $5.50 apiece as investors resumed bargain-hunting following earning a rating upgrade earlier this week. On Tuesday, Bernstein upgraded its outlook for AGL to Outperform from Market Perform previously, and gave the company a price target of $8.50, up from the $3.30 previously. The new target represented a 59-percent upside from AGL's latest closing price. 'Our upgrade reflects our improved confidence in AGL's turnaround plan and cash position,' Bernstein said. 'Since then, we have received several data points that increase our confidence in the turnaround plan, thus lowering the risk of a capital rise.' The upgrade also took into account earlier announcements that the US government would bolster its Medicare Advantage payments next year, which is more than double what it proposed in January. According to Bernstein, AGL is now expected to perform 'better than expected.' Overall, AGL ranks 4th on our list of Thursday's best performers. While we acknowledge the potential of AGL as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. If you are looking for an AI stock that is more promising than AGL but that trades at less than 5 times its earnings, check out our report about this cheapest AI stock. READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires. Disclosure: None. This article is originally published at Insider Monkey. Sign in to access your portfolio
Yahoo
09-04-2025
- Business
- Yahoo
Why Is agilon health (AGL) Stock Soaring Today
Shares of healthcare services company Agilon Health (NYSE:AGL) jumped 29.9% in the afternoon session after Bernstein upgraded the stock's rating from Hold to Buy with a price target of $8.5. The firm noted that new data on AGL drove increased confidence in its turnaround plans and cash position. The shares closed the day at $5.36, up 26.1% from previous close. Is now the time to buy agilon health? Access our full analysis report here, it's free. agilon health's shares are extremely volatile and have had 80 moves greater than 5% over the last year. But moves this big are rare even for agilon health and indicate this news significantly impacted the market's perception of the business. agilon health is up 176% since the beginning of the year, but at $5.30 per share, it is still trading 29.5% below its 52-week high of $7.52 from July 2024. Investors who bought $1,000 worth of agilon health's shares at the IPO in April 2021 would now be looking at an investment worth $170.96. Unless you've been living under a rock, it should be obvious by now that generative AI is going to have a huge impact on how large corporations do business. We prefer a lesser-known (but still profitable) semiconductor stock benefiting from the rise of AI. Click here to access our free report on our favorite semiconductor growth story. Sign in to access your portfolio
