NuVasive shares slide on negative note short seller report

UPDATE: Removed reference to financial group Cowen & Co. after verification that it did not release any negative sentiments towards NuVasive based on the GlassHouse report. NuVasive Inc. (NSDQ:NUVA) shares dropped over 7% after the release of 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 an...
Source: Mass Device - Category: Medical Devices Authors: Tags: Business/Financial News Nuvasive Source Type: news