Agilon Health Lowers 2023 Profit Forecast to $340M-$360M Amid Legal Challenges
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1h ago
0mins
Source: PRnewswire
- Profit Forecast Cut: On January 5, 2024, Agilon Health announced a reduction in its 2023 medical margin forecast to $340 million to $360 million, approximately $110 million below previous guidance, primarily due to $90 million in unexpected medical costs, indicating increasing financial pressure on the company.
- Executive Changes: The company's CFO, Timothy Bensley, is set to retire later this year, with a successor yet to be named, which may impact financial management and investor confidence, exacerbating market concerns about future performance.
- Ongoing Legal Action: Agilon and certain executives are facing a securities class action lawsuit for failing to disclose material information, with a recent court ruling allowing the case to proceed, potentially exposing the company to greater legal and financial risks.
- Investigation Underway: Kahn Swick & Foti is investigating whether Agilon's officers breached their fiduciary duties to shareholders, and if findings indicate wrongdoing, it could significantly impact the company's reputation and stock price.
Analyst Views on AGL
Wall Street analysts forecast AGL stock price to fall over the next 12 months. According to Wall Street analysts, the average 1-year price target for AGL is 0.98 USD with a low forecast of 0.50 USD and a high forecast of 1.50 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
10 Analyst Rating
1 Buy
7 Hold
2 Sell
Hold
Current: 1.020
Low
0.50
Averages
0.98
High
1.50
Current: 1.020
Low
0.50
Averages
0.98
High
1.50
About AGL
agilon health, inc. is a healthcare company. It enables primary care physicians (PCP) to be the agents for change in the communities they serve. Through its combination of the agilon platform, a long-term partnership model with existing physician groups and a growing network of like-minded physicians, it offers healthcare for seniors across communities throughout the United States. Its model operates by primarily forming risk-bearing entities (RBEs) within local geographies, that enter into arrangements with payors providing for monthly payments to manage the total healthcare needs of its physician partners’ attributed patients (or global capitation arrangements). It focuses on community-based physician groups and is built around three key elements: agilon’s platform, agilon’s long-term physician partnership approach, and agilon’s network. The agilon platform is holistic in supporting the rapid transition to a Total Care Model with technology, people, process and capital.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
