ModivCare Bundle
Who Really Owns ModivCare?
Unraveling the ownership structure of a company is key to understanding its strategic direction and market position. A significant shift in shareholding can reshape a company's trajectory, and ModivCare Inc. is no exception. This exploration dives into the ownership dynamics of this technology-enabled healthcare services provider.
From its inception as The Providence Service Corporation in 1996 to its current iteration as ModivCare, understanding its ownership is crucial. This analysis examines the stakes held by various investors, including institutional and public shareholders, providing a comprehensive overview of the ModivCare SWOT Analysis. Discover who influences the
Who Founded ModivCare?
The specifics of the founders and early ownership of what is now known as ModivCare Inc. are not readily available in the provided search results. The company began as The Providence Service Corporation in 1996, later rebranding to ModivCare Inc. in January 2021. Information about the original equity split or shareholding percentages of the founders is not easily accessible in public records.
Focusing on the early days of the company, details about angel investors, early backers, or any stakes held by friends and family are also missing from the available information. Publicly accessible data primarily highlights major shareholders and institutional holdings, particularly after the company became publicly traded. Information about early agreements, such as vesting schedules or buy-sell clauses, is also not available.
The founding team's vision, which generally involved technology-enabled healthcare services, isn't explicitly linked to specific early ownership distributions in the available data. The company's evolution from its inception to its current status as a publicly traded entity has shifted the focus of publicly available information to current ownership structures and financial performance.
Early Days
The company started as The Providence Service Corporation in 1996.
Rebranding
It rebranded to ModivCare Inc. in January 2021.
Public Information
Public data focuses on current ownership, not early details.
Ownership Focus
Information primarily covers major shareholders and institutional holdings.
Early Agreements
Details on early agreements like vesting schedules are unavailable.
Founding Vision
The founding team aimed to provide technology-enabled healthcare services.
Key Takeaways
Understanding the early ModivCare ownership structure is challenging due to limited public information. The focus of available data is on the current ModivCare ownership structure and financial performance. For a deeper dive into the company's history, you can read more in the Brief History of ModivCare.
- Initial ownership details are not readily available.
- Public information emphasizes current shareholders.
- Early agreements and specific founder shares are not detailed.
- The company's evolution has shifted the focus of available data.
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How Has ModivCare’s Ownership Changed Over Time?
The ownership structure of ModivCare has evolved significantly since its inception in 1996 as The Providence Service Corporation. Initially a private entity, it transitioned to a publicly held company. As of May 2025, institutional investors held approximately 90.68% of ModivCare, with insiders holding around 214.97%, and retail investors holding 0.00%. However, different sources show varying figures, highlighting the dynamic nature of ownership reporting. For instance, another source indicates institutional ownership at 45.36% as of June 5, 2025, with insider ownership at 0.00%. These variations underscore the importance of considering different data points when assessing ModivCare's ownership landscape.
A third source suggests approximately 11.92% of the company's stock is owned by institutional investors, 55.58% by insiders, and 9.66% by public companies and individual investors. These varying figures highlight the dynamic nature of ownership reporting across different platforms and points in time. The shifts in ownership, especially the influence of major stakeholders like Coliseum Capital Management, can significantly impact ModivCare's strategic decisions and governance. In early 2025, a transaction with Coliseum required approval from 66-2/3% of the company's stockholders, excluding Coliseum itself, due to their substantial ownership stake.
| Ownership Category | Approximate Ownership (May 2025) | Notes |
|---|---|---|
| Institutional Investors | ~90.68% | Varies across different reporting sources. |
| Insiders | ~214.97% | Includes options and beneficial ownership. |
| Retail Investors | 0.00% |
Coliseum Capital Management LLC is the largest individual shareholder, owning 10.45 million shares, representing 72.82% of the company as of May 2025. Other significant institutional investors include Neuberger Berman Group LLC (14.07%), AQR Capital Management LLC (1.62%), and Wolverine Asset Management LLC (0.91%). Q Global Advisors LLC, through Q Global Capital Management, L.P., also holds a significant stake, increasing its holdings to 1,967,098 shares as of February 2025. ModivCare's financial results for the full year 2024 showed service revenue of $2,787.6 million, a 1.3% increase from 2023, with a net loss of $201.3 million. These financial outcomes can also influence investor confidence and ownership trends.
Key Takeaways on ModivCare Ownership
Understanding the ModivCare ownership structure is crucial for investors and stakeholders.
- Institutional investors hold a significant portion of ModivCare stock.
- Coliseum Capital Management LLC is a major shareholder, influencing company decisions.
- Ownership changes can impact the company's strategy and financial performance.
- The financial performance of the company, such as the 2024 service revenue of $2,787.6 million, can impact investor confidence.
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Who Sits on ModivCare’s Board?
The Board of Directors at ModivCare Inc. oversees the company's operations, acting in the best interests of the company and its stockholders. In uncontested director elections, a majority voting structure is used, where the votes 'for' a director must exceed the votes 'against'. For contested elections, plurality voting is applied. As of December 2024, the board saw the addition of independent directors Mr. Craig Barbarosh and Mr. Neal Goldman, with Mr. Barbarosh joining the Audit Committee and Mr. Goldman joining the Compensation Committee. The company planned to add three new independent directors in the months following January 2025.
The influence of major shareholders impacts governance. For example, a transaction with Coliseum Capital Management LLC, which owned more than 15% of the company's common stock, was subject to a stockholder vote, indicating their significant control. The company's governance is also influenced by legal proceedings. A securities fraud class action lawsuit was filed against ModivCare Inc. and certain senior officers, with a deadline for lead plaintiff filing by March 31, 2025. This highlights potential governance controversies.
| Board Member | Title | Notes |
|---|---|---|
| Craig Barbarosh | Independent Director | Joined December 2024, also on Audit Committee |
| Neal Goldman | Independent Director | Joined December 2024, also on Compensation Committee |
| Additional Independent Directors | To be announced | Planned additions following January 2025 |
Understanding the ModivCare ownership structure is key for investors. The company's governance is influenced by both the board and major shareholders such as Coliseum Capital Management LLC. Investors interested in ModivCare stock and the ModivCare business should monitor board composition and shareholder influence. For more insights into the company's strategies, consider reading about the Marketing Strategy of ModivCare.
Key Takeaways on ModivCare Ownership
The Board of Directors and major shareholders heavily influence ModivCare's governance and strategic decisions. The addition of independent directors and the impact of significant shareholders like Coliseum Capital Management LLC are important factors. Keep an eye on any legal proceedings, as they can also shape the company's future.
- Board composition directly affects the company's strategic direction.
- Major shareholders can significantly influence decision-making through voting power.
- Legal actions can highlight governance issues and impact future processes.
- Understanding these factors is crucial for anyone evaluating ModivCare.
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What Recent Changes Have Shaped ModivCare’s Ownership Landscape?
Over the past few years, the ModivCare ownership landscape has seen significant shifts, primarily driven by institutional investors. As of May 2025, institutional ownership accounts for approximately 90.68% of the company. This concentration highlights the influence of major players in shaping the company's strategic direction and financial strategies. The company's focus on improving its financial position suggests a long-term strategy aimed at increasing shareholder value.
The largest shareholder is Coliseum Capital Management LLC, holding 10.45 million shares, representing 72.82% of the company. Other significant institutional holders include Neuberger Berman Group LLC and Q Global Capital Management, L.P., which increased its holdings to 1,967,098 shares as of February 2025. This ownership structure reflects a trend towards greater institutional involvement and potential influence on the company's future endeavors. For more insights, explore the Growth Strategy of ModivCare.
| Metric | Value | Year |
|---|---|---|
| Service Revenue | $2,787.6 million | 2024 |
| Net Loss | $201.3 million | 2024 |
| Q1 2025 Service Revenue | $650.7 million | Q1 2025 |
| Q1 2025 Net Loss | $50.4 million | Q1 2025 |
Financially, ModivCare reported a 1.3% increase in full-year 2024 service revenue, reaching $2,787.6 million, but also a net loss of $201.3 million. The company's stock price has experienced volatility, declining by 88.06% from June 2024 to June 2025. In Q1 2025, service revenue decreased by 4.9% year-over-year to $650.7 million, with a net loss of $50.4 million. These figures reflect the challenges and strategic adjustments the company is currently navigating.
Key Ownership Players
Coliseum Capital Management LLC is the largest shareholder, holding a significant portion of the company's shares. Neuberger Berman Group LLC and Q Global Capital Management, L.P. are also major institutional holders, influencing the company's direction.
Financial Performance
The company reported a net loss in 2024, despite increased service revenue. Q1 2025 showed a decrease in service revenue and continued losses. These financial results reflect the need for strategic initiatives.
Strategic Initiatives
Securing $75 million in incremental financing and Coliseum Capital's commitment to purchase additional notes are key steps. A company-wide cost reduction initiative targeting $25 million in savings is also underway.
Future Outlook
Management expects improved cash flow generation due to cost savings and working capital initiatives. Most contracts are expected to move to more predictable structures by the end of 2025, supporting long-term value.
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