SCHEDULE 13D/A: Coliseum Capital Boosts Stake in ModivCare to 31.4% Amidst Recent Stock Price Declines
Ownership Disclosure Amendment
Coliseum Capital Management and its affiliates have significantly increased their beneficial ownership in ModivCare Inc. to 31.4% through recent open market purchases.
Summary
- Coliseum Capital Management, LLC and its affiliated entities (Coliseum Capital, LLC, Coliseum Capital Partners, L.P., Coliseum Capital Partners II, L.P., Adam Gray, and Christopher Shackelton) have filed Amendment No. 25 to their Schedule 13D regarding ModivCare Inc. Common Stock.
- The Reporting Persons collectively beneficially own 4,485,175 shares of ModivCare Inc. Common Stock.
- This ownership represents 31.4% of the 14,283,664 shares of Common Stock outstanding as of November 1, 2024, as reported in ModivCare's Quarterly Report on Form 10-Q.
- Since the filing of Amendment No. 24, Coliseum Capital Partners, L.P. (CCP) used $8,199,020.13 of working capital for share purchases, and a separate account investment advisory client of CCM (Separate Account) used $1,801,245.84.
- Recent open market purchases were executed on January 10, 2025, January 13, 2025, and January 14, 2025.
- Transaction prices for these purchases ranged from $5.55 to $9.00 per share, with weighted average prices including $6.81, $7.91, $8.79, $6.56, and $5.88 per share.
Sentiment
Score: 6
Explanation: The increased stake by an activist investor group could be seen as a positive signal for potential future value creation, indicating their confidence or intent to drive change. However, the declining purchase prices suggest recent stock weakness, which introduces a degree of caution.
Positives
- The significant increase in beneficial ownership by an activist investor group like Coliseum Capital (now 31.4%) may signal strong conviction in ModivCare's long-term value or an intent to drive strategic changes.
- Coliseum Capital's substantial stake provides them with considerable influence over ModivCare's corporate governance and strategic direction.
Negatives
- The recent share purchases by Coliseum Capital were executed at declining weighted average prices, indicating a recent downward trend in ModivCare's stock price.
Future Outlook
NA
Industry Context
This filing is an ownership disclosure by an investment group and does not provide broader industry trends or context beyond the specific company, ModivCare Inc.
Stakeholder Impact
- Shareholders: The increased ownership by Coliseum Capital could lead to increased pressure for strategic changes, operational improvements, or a potential proxy contest, which may impact shareholder value. The significant stake could also provide a more stable long-term shareholder base.
Key Dates
| Date | Description |
|---|---|
| 2012-07-30 | Initial Schedule 13D filed by Reporting Persons. |
| 2012-08-20 | Amendment No. 1 to Initial 13D filed. |
| 2012-09-13 | Amendment No. 2 to Initial 13D filed. |
| 2012-11-28 | Amendment No. 3 to Initial 13D filed. |
| 2013-08-15 | Amendment No. 4 to Initial 13D filed. |
| 2014-10-28 | Amendment No. 5 to Initial 13D filed. |
| 2015-02-23 | Amendment No. 6 to Initial 13D filed. |
| 2015-03-16 | Amendment No. 7 to Initial 13D filed. |
| 2017-03-17 | Amendment No. 8 to Initial 13D filed. |
| 2017-12-13 | Amendment No. 9 to Initial 13D filed. |
| 2018-05-10 | Amendment No. 10 to Initial 13D filed. |
| 2018-06-01 | Amendment No. 11 to Initial 13D filed. |
| 2018-06-07 | Amendment No. 12 to Initial 13D filed. |
| 2019-11-14 | Amendment No. 13 to Initial 13D filed. |
| 2020-06-12 | Amendment No. 14 to Initial 13D filed. |
| 2020-11-12 | Amendment No. 15 to Initial 13D filed. |
| 2021-09-09 | Amendment No. 16 to Initial 13D filed. |
| 2023-05-10 | Amendment No. 17 to Initial 13D filed. |
| 2023-08-10 | Amendment No. 18 to Initial 13D filed. |
| 2023-08-11 | Amendment No. 19 to Initial 13D filed. |
| 2023-09-11 | Amendment No. 20 to Initial 13D filed. |
| 2023-09-13 | Amendment No. 21 to Initial 13D filed. |
| 2023-09-18 | Amendment No. 22 to Initial 13D filed. |
| 2024-11-01 | Date as of which 14,283,664 shares of Common Stock were outstanding, as reported in the Issuer's Quarterly Report on Form 10-Q. |
| 2024-12-13 | Amendment No. 23 to Initial 13D filed. |
| 2025-01-10 | Date of event requiring filing of this statement (Amendment No. 24 filed, and open market purchases by CCP and Separate Account at weighted average prices of $6.81, $7.91, and $8.79 per share). |
| 2025-01-13 | Open market purchases by CCP and Separate Account at a weighted average price of $6.56 per share. |
| 2025-01-14 | Open market purchases by CCP and Separate Account at a weighted average price of $5.88 per share, and filing date of this Amendment No. 25. |
Recommendation
holdKeywords
ModivCare Inc., Common Stock, Schedule 13D, Amendment, Beneficial Ownership, Coliseum Capital Management, SEC Filing, Investor, Shareholding, Equity
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