Cano Health (CANO -5.45%) saw its shares drop 46.9% last month, according to S&P Global Intelligence. The company operates primary care and connected medical practices for seniors in Florida, Texas, Nevada and Puerto Rico. The company's stock closed October at $3.58 and opened November at $3.64. Cano's shares fell steadily throughout the month and hit a 52-week low of $1.48 on Nov. 22 before closing the month at $1.90 a share. The stock is down more than 77% this year.
Investors were concerned when Cano, in its third-quarter report, lowered annual guidance and had a net loss of $112 million in the quarter, compared with a $64.8 million loss in the same quarter a year ago
The company said it was reducing its annual revenue forecast range to between $2.7 billion and $2.75 billion, down from earlier estimates of between $2.85 billion and $2.90 billion, citing lower anticipated fixed advanced payments from state or health plans per member per month from new members, in addition to higher costs to deliver Cano's services. The company also said in a presentation that it now expected to have a total of 170 primary care centers across the country this year, down from earlier estimates of between 184 and 189 medical centers.
It wasn't all bad news. The healthcare company increased total membership to 294,596, including 168,346 Medicare flat-fee members, up 40% year over year for both. It also saw revenue rise to $665 million, up 33% over the same period last year.
The stock's slump is also a reaction to the lack of good news after The Wall Street Journal, on Sept. 22, reported that CVS Health and Humana were in talks to buy out Cano. Since then, there's been no solid news on that front, so it's possible the stock is suffering from a buyout bubble that burst.