AUS
NZ
UK
CA
USA
IND
Summary
- Stock of Regional Health Properties Inc (NYSE:RHE, RHE:US) soared by as much as 102 per cent on Monday, May 3.
- From its previous closing price of US$ 7.22 (April 30), the share shot up to US$ 14.62 apiece on Monday.
- The stock swelled by 937 per cent in the past six months, while recording a one-year growth of 1089 per cent.
Stock of Regional Health Properties Inc (NYSE:RHE, RHE:US) soared by as much as 102 per cent on Monday, May 3. From its previous closing price of US$ 7.22 (April 30), the share shot up to US$ 14.62 apiece on Monday.
Let’s find out why this healthcare real estate investment stock surged recently.
Regional Health Properties (NYSE:RHE, RHE:US)
Regional Health Properties is said to be witnessing unusual trading for the past few months.
On April 30, RHE filed a statement with regulators claiming that it was unaware of any change in their business to account for the surge in its stock price. According to reports, the stock is said to be trading erratically since December 28 last year when its share traded between US$ 1.62 and US$ 15.77 apiece in a single trading session.
Ever since its inception in 1991, Regional Health Properties primarily invests in real estate that provides senior living and long-term care services. It either owns or leases the properties meant for these services.
On December 28, 2020, the real estate stock reached a 52-week high of US$ 15.77, as against its 52-week low of US$ 1.12 (May 13, 2020). The stock swelled by 937 per cent in the past six months, while recording a one-year growth of 1089 per cent.
On an average, over 4.1 million RHE shares have traded in the past 30 days. The stock grew by 183 per cent in the past month.
1-year chart of stock performance of RHE (Source: EODHD/Others/Thomson Reuters)
In Q4 2020, the company achieved a revenue of US$ 3.4 million. It recorded US$ 4.4 million worth of cash in hand at the end of this period.
Forecast Of The Global Long-Term Care Market
According to a Grand View Research report, the size of global long-term care market was valued around US$ 1 trillion in 2019. By 2027, the market size is projected to register a compound annual growth rate (CAGR) of 7.1 per cent, as per the report.
It is estimated that the market size will continue to grow due to rising chronic disorders in the US. The rising prevalence of Alzheimer's, dementia, heart and respiratory diseases is likely to increase the reliance on long-term care facilities.
The above constitutes a preliminary view and any interest in stocks should be evaluated further from an investment point of view.
