ATI Physical Therapy (NYSE:ATIP) Stock Extends Fall: Slump 50% in a Week

It has been a pretty tough week for investors in ATI Physical Therapy (NYSE:ATIP). The stock continued to suffer from selloff yesterday and tanked by as much as 19% to take its losses over the course of the past week to 51%.

The trigger for the major selloff in the stock was triggered by the fact that the company missed revenues estimates by a wide margin in the second fiscal quarter of 2021. In addition to that, the physical therapy chain operator also reduced its projections. Hence, it was no surprise that investors decided to head for the exits.

Before the announcement of its second quarter results, analysts had estimated that the company was going to generate as much as $175 million in the form of revenues.

However, ATI Physical Therapy could only manage to clock revenues of $165 million and on top of that, the pre tax loss per share came in at $5.5. While the visits to the company’s establishments on a per day basis went up by 71% to hit 21600, the actual revenue that was generated per visit actually went down to $106.26. That reflected a drop of as much as 10%.

Market Reaction:

On Tuesday, ATIP stock slumped 19% at $3.82 with more than 7.60 million shares, compared to its average volume of 1.14 million shares. The stock has moved within a range of $3.6600 – 4.5600 after opening the trade at $4.56. Over the past 52-week, the stock has been trading within a range of $3.6600 – 13.0500.