Why Envision Healthcare (EVHC) Stock Is Down Today

NEW YORK (TheStreet) -- Shares of Envision Healthcare (EVHC) fell 4.67% to $34.12 in morning trading Wednesday after the company announced a public offering of common stock.

Envision, which provides medical transportation and other medical services, announced the sale of 17.5 million shares. The selling stockholders will receive all net proceeds from the offering, and Envision is not selling any shares.

More than 3.5 million shares had changed hands as of 10:42 a.m., compared to the average volume of 1,022,500.

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Separately, TheStreet Ratings team rates ENVISION HEALTHCARE HLDGS as a "hold" with a ratings score of C-. TheStreet Ratings Team has this to say about their recommendation:

"We rate ENVISION HEALTHCARE HLDGS (EVHC) a HOLD. The primary factors that have impacted our rating are mixed - some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its solid stock price performance, robust revenue growth and good cash flow from operations. However, as a counter to these strengths, we also find weaknesses including unimpressive growth in net income, premium valuation and generally higher debt management risk."

Highlights from the analysis by TheStreet Ratings Team goes as follows:

  • Compared to its closing price of one year ago, EVHC's share price has jumped by 29.80%, exceeding the performance of the broader market during that same time frame.
  • Despite its growing revenue, the company underperformed as compared with the industry average of 20.4%. Since the same quarter one year prior, revenues rose by 19.6%. This growth in revenue does not appear to have trickled down to the company's bottom line, displayed by a decline in earnings per share.
  • Compared to other companies in the Health Care Providers & Services industry and the overall market, ENVISION HEALTHCARE HLDGS's return on equity significantly trails that of both the industry average and the S&P 500.
  • The company, on the basis of change in net income from the same quarter one year ago, has significantly underperformed when compared to that of the S&P 500 and the Health Care Providers & Services industry. The net income has significantly decreased by 120.8% when compared to the same quarter one year ago, falling from $9.60 million to -$1.99 million.
  • You can view the full analysis from the report here: EVHC Ratings Report

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