DocGo (NASDAQ:DCGO) has received an upgrade from Zacks Research, moving from a “strong sell” rating to a “hold” rating. This change was made public in a research report issued to clients and investors on October 8, 2023. The upgrade reflects a shift in market perception, although other analysts have maintained a more cautious stance on the stock.
Zacks Research’s upgrade comes amid ongoing assessments from various equities research analysts. Notably, Weiss Ratings reaffirmed a “sell (d)” rating for DocGo just days prior. Additionally, Canaccord Genuity Group increased its price target for the stock from $1.45 to $1.60, while also assigning a “hold” rating in a report released on August 21, 2023. Currently, two analysts have given the stock a “buy” rating, four have rated it as “hold,” and one has issued a “sell” rating, leading to a consensus rating of “hold” with an average target price of $3.24, according to MarketBeat.com.
Recent Financial Performance and Analyst Expectations
DocGo recently reported its quarterly earnings on August 7, 2023. The company posted earnings of ($0.11) per share, which fell short of analysts’ expectations of ($0.06) by $0.05. Revenue for the quarter reached $80.42 million, exceeding the consensus estimate of $77.58 million. Despite this revenue success, DocGo reported a negative return on equity of 3.26% and a negative net margin of 4.20%. Analysts predict that DocGo will achieve earnings of $0.25 per share for the current fiscal year.
Institutional Investors Adjust Holdings
In recent months, several institutional investors have made significant changes to their positions in DocGo. P.A.W. Capital Corp increased its stake in the company by 60.0% during the second quarter, now holding 3,200,000 shares valued at $5,024,000 after acquiring an additional 1,200,000 shares. Similarly, S Squared Technology LLC raised its position by 52.2%, owning 2,878,286 shares worth $4,519,000 following a purchase of 987,310 shares.
Other noteworthy changes include Punch & Associates Investment Management Inc., which grew its stake by 17.4%, now owning 2,201,667 shares valued at $5,812,000. Jefferies Financial Group Inc. also increased its holdings by 5.7%, bringing its total to 2,144,456 shares worth $3,367,000. American Century Companies Inc. made the most substantial increase, raising its holdings by 175.5% to 1,245,894 shares valued at $3,289,000. Currently, institutional investors hold 56.44% of DocGo’s stock.
Company Overview
DocGo Inc. provides mobile health and medical transportation services to various healthcare providers across the United States and the United Kingdom. Its transportation services include emergency response operations and non-emergency transport, which encompasses both ambulance and wheelchair services.
As the company navigates this period of adjustment in its market perception, stakeholders and investors will be closely monitoring upcoming earnings reports and analyst evaluations to gauge its future trajectory.
