Inovalon Holdings, Inc. | $INOV Stock | Shares Crash Down On Lower Guidance Numbers


Inovalon Holdings, Inc. (NASDAQ: INOV)



Inovalon Holdings, Inc. (INOV), announced yesterday reported that they are updating their Full year 2016 Financial guidance numbers. Inovalon has updated their Non-GAAP net income per share to be $0.32 to $0.33 per share which is lower than their previous guidance of $0.39 to $0.46 per share. Inovalon updated their full year revenue numbers to be in between $426 to $428 million which is down from previous guidance of $470 to $490 million.


Inovalon Holdings, Inc. CEO’s Comments

Keith Dunleavy, M.D., Chief Executive Officer and Chairman of the Board of Inovalon commented, “While this is certainly not the situation we expected or desired, it does demonstrate the level of market opportunity for our platform capabilities, the significance of value that can be driven by those capabilities, and the size and scale at which Inovalon is being called upon to partner and deliver them.”  Globe Newswire


INOV Technical Analysis

Inovalon Holdings

INOV opened trading yesterday at $15.05 which was exactly the same as the previous day’s trading close. INOV closed trading yesterday at $14.85 and crashed down after market to $9.95, equivalent to a 33% decrease from the closing price. Taking a look at the daily chart we can see that we are in unchartered territory as INOV is now trading at all time lows. Taking a closer look at the daily chart we can see that before the spike down INOV had already been in an overall downward trend dating back to November 25th when it traded at highs of $16. INOV has a float of 53.81 million shares and traded below the normal daily trading volume on Monday. For trading purposes, I would like to see INOV open trading on Tuesday below $11.50 and if it does I would be looking to take a short position at the bell. My stop loss would be $0.30 from my entry position fearing anything more than that and the stock would start to fill in the gap down.


Company Profile

Inovalon Holdings, Inc., incorporated on September 11, 2014, is a technology company. The Company combines advanced cloud-based data analytics and data-driven intervention platforms to provide services for health plans, hospitals, physicians, patients, pharmaceutical companies and researchers. The Company operates through developing cloud-based data analytics and data-driven intervention platforms segment and provides related services to its clients. The Company’s datasets, integration technologies, predictive analytics and subject matter expertise allows the Company to provide platforms. Its analytics platforms identify gaps in care, quality, data integrity and financial performance in its clients’ datasets.  The Company’s data analytics and intervention platforms consist of four primary components: data integration, advanced analytics, intervention platforms and business processing. The Company integrates data into its systems through its Extract, Transform, Load (ETL) tools and processes. This system manages the process of defining and configuring thousands of industry data feeds from its clients and partners, such as electronic health records (EHR), laboratory, pharmacy, patient reported, claims, paper based medical records, biometric and hospital data feeds respectively; manages the data processing workflow, and monitors the ongoing provision and quality of data through the application of approximately 2,000 data integrity checks. In addition, to being maintained and tagged within client-specific data lakes, data the Company receives in the course of providing its services are statistically de-identified and stored in its MORE2 Registry. The MORE2 Registry includes information about demographics, enrollment, diagnoses, procedures, pharmacy, laboratory results and deep medical record clinical data, and presents a representative mix of commercial, HIX Marketplace, Medicare Advantage and managed Medicaid care plan patients.The Company competes with Oracle, Dell, SAP, SAS, IBM, Accenture, Deloitte Consulting, McKesson, OptumHealth, Truven, Verisk, DST Health, The Advisory Board, Alere, Altegra, Matrix, edifecs and Silverlink.  Reuters