Investors Who Believed in Growth Stories: Reasons Behind a 6% Drop Despite Overcoming SEC Challenges

PACS Group Inc. (NYSE: PACS) shares dropped 6.27% to close at $39.49 on January 13, erasing roughly $360 million in market value—about ₩480–500 billion—in a single day. Trading volume topped 1.18 million shares, exceeding its recent average.

In a post-market announcement on January 12, PACS Group said CEO Jason Murray and acting CFO Mark Hancock will present the company’s strategy and 2026 outlook at the J.P. Morgan Healthcare Conference on January 13. The company noted that it has completed its SEC financial restatement, which had been delayed through year-end, and filed its third-quarter 2025 results, thereby restoring regulatory compliance. Nevertheless, some analysts argue that the stock’s rapid short-term surge has created valuation pressures, leading to profit-taking.

PACS Group operates large post-acute and long-term care facilities in the United States. Since its 2024 IPO, the company has been highlighted as a growth stock amid aggressive acquisitions and expectations of benefiting from demographic aging. Yet in 2024, it faced extreme volatility due to accounting restatements, delayed filings, short-seller reports, and securities litigation.