Why is Allied Healthcare (AHPI) stock up 53% Friday?

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Why is Allied Healthcare (AHPI) stock up 53% Friday?

 Why is Allied Healthcare (AHPI) stock up 53% Friday?
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Highlights

  • Stocks of Allied Healthcare Products rallied over 53% in the premarket on Friday.

  • WHO is likely to convene to discuss the spread of a new Covid variant in South Africa.

  • The AHPI stock price surged over 4% YTD.

Stocks of Allied Healthcare Products, Inc. (NASDAQ: AHPI) rallied on Friday as the emergence of a new covid variant in South Africa rocked the global markets.

The covid fears proved to be a boon for some stocks as it triggered a bullish sentiment, say experts. The AHPI stock traded at US$8.26 at 9:05 am ET, up 53.53% from its previous close.

What may have pushed the AHPI stocks higher?

Investors might have responded to the news that the WHO would be holding an emergency meeting later on Friday to discuss the emergence of a new Covid-19 variant in South Africa.

Scientists, however, have not yet confirmed if it is deadlier than the existing variants.

CNN quoted South African Health Minister Joe Phaahla as saying that: “Initially it looked like some cluster outbreaks, but from yesterday, the indication came from our scientists from the Network of Genomic Surveillance that they were observing a new variant.”

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The new variant has a high mutation rate.

Allied Healthcare is based in St. Louis, Missouri, and manufactures respiratory devices.

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Allied Healthcare (AHPI) rallied over 53% in pre-market trading on Friday

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Stock performance and financial:
The medical equipment manufacturer has a market cap of US$21.59 million. The stock saw the highest price of US$16.41 and the lowest price of US$3.45 in the last 52-week.

The trading volume of AHPI on November 24 was 76,626.

For the year ended on June 30, 2021, the net sales of the firm were US$36.27 million, compared to US$31.89 million in the previous year. Its net income came in at US$1.68 million, or US$0.42 per share, against a loss of US$3.01 million, or a loss of US$0.75 per share, for the year ended on June 30, 2020.

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Bottomline

The stock has witnessed notable growth in recent quarters. The AHPI stock grew 4.06% YTD. However, investors should closely evaluate the companies before investing in the stock market.

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