Evolent Health Stock Plunges 3.70% to 2020 Low Amid ACO Sale to Privia Health

The share price fell to its lowest level since June 2020 today, with an intraday decline of 3.70%

Evolent Health’s stock has dropped for two consecutive sessions, with a 5.51% loss over the past two days, driven by investor reaction to its strategic sale of an Accountable Care Organization (ACO) business to Privia Health. The transaction, announced in late September, is set to close in Q4 2025 and involves the transfer of over 120,000 attributed lives to Privia, expanding its value-based care footprint to 1.5 million. While the move aligns with Evolent’s focus on portfolio optimization and core growth areas, the immediate market response reflects uncertainty about the short-term financial implications of the divestiture.

Privia Health’s strong third-quarter performance—32.5% year-over-year revenue growth and raised 2025 guidance—has added complexity to the narrative. The acquisition is expected to benefit Evolent’s Adjusted EBITDA in 2026, but investors may be discounting the longer-term benefits amid near-term volatility. The transaction also highlights broader sector consolidation trends, with Evolent exiting a non-core asset to refocus on partnerships with health systems and payers. However, the timing—just days before Evolent’s November 7 earnings report—has intensified scrutiny over whether the sale will influence its upcoming results or be viewed as a strategic retreat from underperforming operations.