agilon health, inc. (AGL) Analysis

Shares of healthcare services company Agilon Health (NYSE:AGL) fell 4.4% in the afternoon session after the company was downgraded by analysts at Bernstein from “Outperform” to “Market Perform”. The firm also slashed its price target on the stock by 65% to $1.40 from $4.00. Analyst Lance Wilkes cited “worse-than-expected margin pressures” following a disappointing quarter where the company's medical margin was a negative $53 million. This was primarily driven by lower-than-expected risk adjustme

Okay fellow regards, here’s the deal. Agilon Health (AGL) makes over $6 BILLION a year in revenue. That’s a lot of commas. But the whole company is only worth about $350 million in market cap right now. That’s like buying a Lamborghini for the price of a rusty bicycle. Why so cheap? Because they’re bleeding money. Losses have been chunky — over $100M last quarter. But here’s the twist: the bleeding is slowing down. Last year they lost even more, so the hole is getting smaller. That’s a sign th...