NuVasive shares slide on negative note from analyst

UPDATE: Updated to reflect that Cowen & Co. did not downgrade the stock, but issued a negative note. NuVasive Inc. (NSDQ:NUVA) shares dropped over 7% after financial group Cowen & Co. issued a negative note on the company following a report from short seller GlassHouse Research which accused the company of “irregular accounting,” according to a Benzinga report. The short seller’s report claims that the company was using accounting tricks to hide that its organic business is in decline, according to Benzinga, and accuses the company of inflating its earnings and growth numbers. GlassHouse used the departure of former CFO Quentin Blackford and COO Jason Hannon as evidence of its issues, and set a $24.18 price target for the company, less than half of the $57.85 value it opened at yesterday, according to the report. The company saw trading volume at 5.3 million shares yesterday, falling 7.5% to close at $53.54. But the swing could be an opportunity for investors to get on board with the company, according to a Seeking Alpha report from Kratisto Investing CFA Stephen Simpson. “The decline hasn’t come without some reasons, including a slower U.S. spine market, executive departures, and a subpoena from the OIG, but these don’t strike me as long-term issues. Instead, they remind me of a lot of the other short-term setbacks that have created interruptions in NuVasive’s long-term run. To that end, I believe strong revenue growth and margi...
Source: Mass Device - Category: Medical Devices Authors: Tags: Business/Financial News Nuvasive Source Type: news