MultiPlan plunges over 20%

 (NYSE: MPLN) shares went down over 20%  before ending at to $7.01 on Wednesday. This dive comes after Research releases a short report titled “MultiPlan: Private Equity Necrophilia Meets The Great 2020 Money Grab.” The Muddy Waters says Mutiplan is about to lose , its largest customer as they formed a competing product called Naviguard. It's reported that has “significantly lower prices and fewer conflicts of interest.” It's estimated that Naviguard will decrease MultiPlan's 2022E revenue by 35% and FCF by 80% while net leverage “balloons” to over 8x, estimates the short seller.

MultiPlan merged with Churchill Capital Corp III in early October to become MultiPlan Corporation. They recently announced that it has acquired HST, a healthcare technology company that enables value-based health benefit plan designs, for a purchase price of $140M.

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