What’s Behind the 55% Surge in ModivCare Stock (MODV) Today?

Bankruptcy Filing: ModivCare (MODV) has filed for voluntary Chapter 11 protection to undergo a comprehensive restructuring, supported by key stakeholders including over 90% of First Lien Lenders.

Financial Support: The company secured a $100 million debtor-in-possession financing to fund its restructuring and maintain operations, aiming to reduce its debt by $1.1 billion and improve liquidity.

Stock Performance: Following the bankruptcy announcement, MODV stock experienced significant volatility, rising 54.84% in pre-market trading after a previous drop of 69.73%, but is down 95.27% year-to-date.

Analyst Coverage: Currently, only one analyst covers ModivCare, rating it a Hold with a price target of $2.75, indicating a potential upside of 391.07% post-bankruptcy news.