Why Shares of MultiPlan Corporation Dropped 11.1% on Tuesday
Shares of MultiPlan Corporation (NYSE: MPLN), a healthcare data analytics and cost management solutions provider, fell 11.1% on Tuesday. The stock opened at $5.42, then dropped to a low of $4.87 in the mid-morning. MultiPlan has a 52-week high of $8.26 and a 52-week low of $3.25. The stock is still up more than 12% so far this year.
An underwhelming neutral rating and a price target of $6.50 by Goldman Sachs wouldn't seem like a big blow, but it was enough to drop MultiPlan's shares, at least for the day. The company, which went public via a special purpose acquisition company (SPAC) merger in 2020, had its best year yet in 2021 with $1.12 billion in revenue, $838.3 million in adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA), along with $102.8 million in net income.
The company's guidance, reiterated during its first-quarter report on May 10, said it expects full-year revenue this year between $1.16 billion and $1.2 billion and adjusted EBITDA of $850 million to $875 million. That represents a gain of 3.5% to 7.1% in annual revenue and an increase of adjusted EBITDA between 1.3% and 4%.
Source Fool.com
