Adeptus Health Inc (NYSE: ADPT)
Adeptus Health seemed like it was going to have an overwhelmingly strong day in the market today. When the opening bell rang, the stock was slightly in the green. From there, the stock has climbed dramatically to make it to impressive gains on the day. However, minutes ago, news broke that sent the stock on a downward spiral right into the red. Below, we'll talk about what we're seeing, why, and what we'll be watching for with regard to ADPT ahead.
What We're Seeing From ADPT
As mentioned above, Adeptus Health was on the path to an incredibly strong day in the market today. When the opening bell rang, the stock was in the green. From there, we saw a strong run for the top that brought the stock to impressive gains. However, things changed minutes ago when the stock started spiking downward. At the moment (12:56), ADPT is trading at $8.42 per share after a loss of $0.07 per share (0.82%) thus far today.
Why The Stock Is Falling
As is normally the case, our partners at Trade Ideas were the first to alert us to the downward movement on ADPT. As soon as we received the alert, the CNA Finance team started working to see exactly what was causing the movement. In this case, it didn't take long to uncover the story. Unfortunately, it looks like the company is facing legal issues.
Recently, we've heard a bit about Adeptus Health, in particular, concerns about questionable hospital fees. Well, as of news that broke minutes ago, there is no question any more. The company is likely to face fraud charges associated with hospital fees. While we have not yet received confirmation of the charges, our sources are adamant that this is indeed what's happening.
What We'll Be Watching For Ahead
Moving forward, the CNA Finance team will be watching ADPT incredibly closely. In particular, we're watching to see if charges are indeed filed. If so, the implications of the issue could be massive. We'll keep a close eye on the news and bring it to you as it breaks!
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