What happened
Shares of Accolade (ACCD -14.15%) were down more than 25% for the week as of 10 a.m. on Friday, according to data provided by S&P Global Market Intelligence. The healthcare benefits company's stock closed last week at $10.58 a share then fell to as low as $7.70 in early trading on Friday. The stock is still up nearly 3% so far this year.
So what
Accolade announced fiscal 2024 second-quarter earnings after the markets closed Wednesday, and the results were mixed. Revenue was up 11% year over year to $96.9 million, and the company's net loss was $32.8 million, down 29% over the same period last year. Considering the news, investors and analysts were disappointed that the company maintained its yearly guidance for revenue to be between $410 million and $414 million.
Several analysts downgraded their positions on Accolade stock on Thursday.
- Cannacord Genuity Group lowered its price target on the stock from $18 to $17.
- Truist Financial lowered its price target from $17 to $15.
- Bank of America lowered its price target from $19 to $16.
- Stephens maintained its position on Accolade stock at overweight and a price target of $18.
- Raymond James lowered its price target from $15 to $12.
Now what
The drop is likely temporary because the earnings report at least shows the company moving in the right direction. Still, the cash situation isn't great, with $292.2 million on the books. At its current burn rate, the company faces running out of funds for operations within three years if it doesn't bring in additional financing.
