What started as a simple idea of helping people live better lives, Aveanna Healthcare is now a top diversified home care platform providing care to medically complex and high-cost patient populations. The company directly addresses the most pressing challenges facing the U.S. healthcare system by providing safe, high-quality care at home.
On April 28, 2021, Aveanna Healthcare Holdings Inc. announced an initial public offering (IPO) price of $12 per share on 38,236,000 shares of its common stock. Investors interested in jumping on the departing Aveanna Healthcare Holdings train can use this guide to learn how to buy stocks. Here’s how to get involved.
Aveanna Healthcare Holdings Financial History
Aveanna was incorporated on November 30, 2016, under the name BCPE Oasis Holdings Inc. It began operations in March 2017 but changed its name to Aveanna Healthcare Holdings Inc. on May 26, 2017.
Today, Aveanna Healthcare Holdings stands as a national leader in pediatric home health. Its patient-focused care delivery platform works to bolster the quality of care patients get, which lets them remain in their homes and reduces their overreliance on high-cost care settings.
Since 2016, the company has scaled its business by a factor of 4 times, expanding from 17 states and $324.6 million in revenue in 2016 to 23 states and $1.4 billion in revenue in the fiscal year 2019. As of December 31, 2020, Aveanna operated in 25 states and had expanded into adult home health and hospice for Medicare populations.
Private-duty nursing — Aveanna’s largest business segment today — is a stable and steadily growing industry with growth tailwinds from the rising adoption of home care in lieu of family and institution-based care. According to Aveanna, 3rd-party market research points to a 3% to 4% growth in the private-duty nursing market between 2020 and 2025, which provides a positive outlook for the business.
Aveanna’s recent acquisitions have helped strengthen its position in the healthcare sector. Some of the company’s most notable ones include:
- In August 2020, Aveanna acquired Total Care, Inc., a corporation that provides pediatric private-duty nursing and unskilled home care services exclusively in Washington.
- In September 2020, the company acquired Evergreen Home Healthcare, LLC, a provider of certified nursing aid, private-duty nursing, skilled nursing and in-home support. services mainly for pediatric patients exclusively in Colorado.
- In October 2020, Aveanna acquired Five Points Healthcare, LLC, a provider of home health and hospice services in 7 states.
Aveanna Healthcare Holdings Potential
There’s no denying that IPOs can sometimes be a nasty play, but Aveanna’s diversified home care platform is differentiated and well-positioned to continue pushing sustainable long-term growth.
With healthcare costs in the U.S. rising at unsustainable rates, home health is gradually gaining wide recognition as part of the solution to minimize costs and avoid unnecessary facility-based care. Aveanna’s national reach into the homes of high-cost patient populations positions it to deliver a great experience for patients, improve clinical outcomes and reduce the burden of aggregate costs on the U.S. healthcare system.
Aveanna operates in a large, highly fragmented and rapidly growing market. Home health is among the rapidly growing sectors in the healthcare industry, with spending forecasts leaning to a compound annual rate of 7.1% from 2019 through 2028 according to the Centers for Medicare and Medicaid services.
The company also banks on its national and local scale density to create sustainable competitive advantages. For instance, its national scale and local market density create a profit advantage that helps the company reinvest into more advanced capabilities to support its network.
Aveanna Healthcare Holdings senior management team, led by Rodney Windley (executive chairman), Tony Strange (chief executive officer), Jeffrey Shaner, David Afshar and Shannon Drake, has more than 100 collective years of home health experience and boasts a strong track record of building home health platforms through acquisitions.
How to Buy Aveanna Healthcare Holdings IPO (AVAH) Stock
Take the following 4 simple steps to buy AVAH before it’s too late to join the bandwagon.
- Pick a brokerage.
You must have an account with an online broker to participate in any publicly traded security. Unlike traditional brokers, current brokers are regulated financial firms that act as an intermediary when you want to buy or sell stocks. Most brokers have adopted commission-free trading, so you probably don’t have to worry about incurring fees per trade.
- Decide how many shares you want.
The number of shares you own translates to your level of risk exposure. There’s also a greater profitability potential if you own more shares of AVAH. To decide the number of shares you want, you’ll need to take into account the amount of money you’re willing to invest and the current share price.
For instance, if AVAH is trading at $12 per share and you want to invest $600 in the stock, you’ll own 50 shares of the stock (600 / 12 = 50). As with any other IPO stock, only invest money you can afford to lose. IPOs can move widely, so you may need to monitor your investment for a few weeks.
- Choose your order type.
Before pulling the trigger on the Aveanna IPO, make sure you strategize beforehand with the type of order to deploy. Most brokers have multiple choices for you when placing a trade, and here are some of the more common selections.
Market order: A market order to buy a security will execute immediately at the best price available on the market.
Limit order: A limit is an instruction to buy a stock at or below a specific price you target. This order type will only execute if you get your price or better.
Stop order: A stop order instructs the broker to buy a stock at the market price once the security has traded at or through a specific stop price. Once the stock hits the stop price, the order becomes a market order and fills at the next available market price.
Good for 1 day: This order specifies that your order will remain in effect for 1 day or until it’s fully executed or canceled.
All-or-none: Choose this instruction to enter an order that must buy the full quantity of shares that you specified in a single transaction, otherwise it won’t execute altogether.
Before placing a buy order, strive to familiarize yourself with the various ways you can control your order. That way, you’ll be in a better position to receive the outcome you’re seeking.
- Execute your trade.
It’s time to hit that Buy button. Search the ticker symbol AVAH, select a buy action, enter the number of shares or amount of money you want to invest and hit the Buy button. Your broker will execute your market order at the next available price. Other order types may not fill immediately, but once they do, your AVAH shares will reflect in your brokerage account.
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Changing the way Home Care is Delivered
By providing a wide range of home care services, Aveanna seeks to meet a full range of care needs for patients while minimizing the complexity and disruption to patient care associated with procuring different types of care from separate independent providers. And with healthcare being one of the largest and fastest-growing sectors of the U.S. economy, Aveanna should continue to see sustainable growth in its markets.