Progyny Inc falls after anonymous short-seller report

Progyny

07/12/2022 17:18

** Shares of fertility benefits management company Progyny
Inc  PGNY.O  down 4.35% at $30.59 
    ** Jehoshaphat Research, a self-described anonymous group of
short-sellers and investors, says it is short on Progyny shares
    ** In a 50-page report, group alleges "PGNY is secretively
changing important accounting policies that materially inflate
profits and is actually unprofitable", citing industry experts,
including a former PGNY executive
    ** The short-seller group further alleges "recently, by
changing just one word in their SEC filings, PGNY management
gave itself the ability to book profits based on "expected"
results rather than "historical," which added ~400 bps to
margins"
    ** Reuters could not immediately verify the accuracy of the
claims
    ** Progyny did not immediately respond to Reuters' request
for a comment
    ** Last month, Progyny reported Q3 adj profit of 3
cents/share and raised FY22 forecast for rev and net income
    ** More than 1.4 mln shares of PGNY traded so far, ~154.8%
of their 30-DMA volume of 879,700 shares
    ** Shares now off 39.2% for the year
 (Reporting by Devik Jain in Bengaluru)
 ((Devik.Jain@thomsonreuters.com;))