What Happened?

Shares of healthcare services company Agilon Health (NYSE: AGL) fell 24.9% in the afternoon session after the company reported weak first quarter 2025 results as new customer additions fell short. 

On the other hand, revenue and EBITDA for the full-year exceeded Wall Street's estimates. That said, with Medicare Advantage members down 6%, growth is clearly cooling. Zooming out, we think this was a decent quarter featuring some areas of strength but also some blemishes.

The stock market overreacts to news, and big price drops can present good opportunities to buy high-quality stocks. Is now the time to buy agilon health? Access our full analysis report here, it’s free.

What The Market Is Telling Us

agilon health’s shares are extremely volatile and have had 78 moves greater than 5% over the last year. But moves this big are rare even for agilon health and indicate this news significantly impacted the market’s perception of the business.

The previous big move we wrote about was 29 days ago when the stock gained 29.9% on the news that Bernstein upgraded the stock's rating from Hold to Buy with a price target of $8.5. The firm noted that new data on AGL drove increased confidence in its turnaround plans and cash position.

agilon health is up 84.1% since the beginning of the year, but at $3.54 per share, it is still trading 53% below its 52-week high of $7.52 from July 2024. Investors who bought $1,000 worth of agilon health’s shares at the IPO in April 2021 would now be looking at an investment worth $114.03.

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