(Bloomberg) — Shares of nursing house operator PACS Group Inc. tumbled 28% on Monday after Hindenburg Analysis launched a brief report alleging that the corporate has been — amongst different issues — “systematically scamming taxpayers.”
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The drop triggered volatility halts within the shares of the health-care agency, and had PACS notching its worst day since its debut as a publicly traded inventory in April. The inventory had closed at a file excessive of $42.94 on Friday, greater than double the preliminary public providing value of $21.
PACS, which relies in Farmington, Utah, didn’t reply to a Bloomberg Information request for remark.
PACS manages about 284 nursing services throughout 16 states and serves greater than 27,000 sufferers every day, in keeping with a current submitting. Final week, PACS stated it had closed the acquisition of eight nursing properties in Pennsylvania, with 4 of the services being leased from CareTrust REIT Inc.
Shares of CareTrust fell 4%, the worst one-day drop since September 2022.
Final month, Hindenburg took goal at Roblox Corp., saying in a report that the corporate inflated key metrics and alleging that it doesn’t have enough security screens to guard kids utilizing the platform. Earlier this 12 months, Hindenburg launched a report on Tremendous Micro Laptop Inc., saying an investigation revealed “evident accounting purple flags.” Tremendous Micro delayed submitting its annual monetary disclosures following the report.
Shares of PACS, which had been valued at about $6.7 billion at Friday’s market shut, had rallied on the again of two quarterly earnings studies that topped estimates in addition to a lift to its income and revenue steerage for the 12 months.
PACS is scheduled to report its third quarter outcomes Thursday after the market shut.
(Updates with closing costs all through.)
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