Passing On Astrana Health
Oct 7, 2024
Astrana Health (ASTH) is a healthcare management company, providing a technology and solutions platform for both primary care and specialty physicians, as well as owning some of their own medical offices. The firm currently operates in 3 states (CA, NV, and TX), but is expanding into several more with the pending purchase of Collaborative Health Systems. This was a close call, as there is plenty of growth potential, the network is sticky (98% provider retention), and revenues are recurring in the "full-risk" model where coverage pays a fixed fee per patient. However, growth will largely be through acquisitions, which will (and has) result in low ROIs. I'm also not a huge fan of the 87% cut of revenue paid by Medicare and Medicaid. Astrana is largely exposed to political whims around reimbursement rates. It gets a pass, but investors could do worse, and the stock is reasonably valued right now.
Follow @GreenDotStocks
Information contained on this website represents only the opinions of the author and should not be used as the sole basis for investing decisions. By using this site, you agree to all statements in the Site Policy.
Watch List
| SE | 54.68% |
| PINS | 0.79% |
| MA | 8.36% |
| CMG | 78.42% |
| GOOG | 39.63% |
| PSTG | 10.62% |
| SEMR | -4.87% |
| INTU | 27.32% |
| SMAR | 24.31% |
| GTLB | 38.11% |
| CRWD | 62.86% |
| VEEV | 12.04% |
| WDAY | 8.55% |
| SNOW | -7.77% |
vs. Fair Value Estimates
Buy List
| MSFT | -25.00% |
| ODD | -29.90% |
| ASR | -29.86% |
| HRMY | -51.78% |
| YOU | -45.33% |
vs. Fair Value Estimates
Hold List
| FLYW | 16.16% |
| CELH | -13.41% |
| TOST | 49.12% |
| CPNG | 2.00% |
| HIMS | -22.18% |
| PAYC | -24.21% |
| MNDY | 23.88% |
| GLBE | 10.02% |
| ZS | 20.32% |
| V | -14.85% |
| ADSK | 17.05% |
| NOW | 41.49% |
| ABNB | -19.01% |
| MELI | -21.72% |
| FTNT | -0.59% |
| TEAM | 9.58% |
| ADBE | -15.91% |
vs. Fair Value Estimates