What happened
Shares of Nutex Health (NUTX -1.23%), a physician-led healthcare management company with physician networks and 21 micro-hospitals, rose 28.1% on Monday. The stock closed on Friday at $1.21, then opened on Monday at $1.20. The stock peaked at $1.60 shortly after 2 p.m., then closed at $1.55. The stock has a 52-week low of $0.50 and a 52-week high of $52.80, and is down more than 62% so far this year. The stock went public via a reverse merger with Clinigence Holdings in April.
So what
There wasn't any announcement by the company. Monday's move was likely a reaction to an overcorrection last week, when the stock fell as low as $0.90 a share.
Nutex Health reported third-quarter earnings on Nov. 22. The company reported a net loss of $422.5 million and an earnings-per-share (EPS) loss of $0.65, compared to net income of $74.5 million and an EPS gain of $0.09 in the same period last year. The company attributed the net loss and EPS loss to a one-time goodwill impairment charge of $408.5 million. The company also announced an agreement to sell up to $100 million in stock to Lincoln Park Capital, which dilutes the company's value to its current investors.
Now what
At the healthcare stock's current share price, it doesn't take much to have a wild percentage swing, nor is it unusual for Nutex stock to be volatile. In the long run, most investors will look for an improvement in profitability before they jump back in Nutex stock. The company is scheduled to be at the One-on-One Investor Conference put on by the Benchmark Company on Dec. 1 in New York, so the news from that conference could also influence the stock.
