Why did MultiPlan Corporation (MPLN) stock jump 33% today?

November 22, 2021 03:28 PM PST

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Why did MultiPlan Corporation (MPLN) stock jump 33% today? — Image source: elwynn,Shutterstock

Highlights

MultiPlan Corporation (NASDAQ: MPLN) stock closed at 33% higher on Monday.

The company expects to obtain the resale registration statement on Dec 10, 2021.

It announced to participate in the virtual BofA Leverage Finance Conference to be held at 12:45 pm ET on Dec 1, 2021.

The MultiPlan Corporation (NASDAQ: MPLN) stock closed at 33% higher on Monday after it said it is expecting the resale registration statement from the SEC by Dec 10, 2021.

The MPLN closed at US$4.67, up nearly 33%, on Nov 22. The New York-based healthcare company helps clients in managing the care cost and improving their competitiveness.

Announcements

On Monday, it announced its participation in the virtual BofA Leverage Finance Conference to be held at 12:45 pm ET on Dec 1, 2021. The company also said that it is expecting the resale registration statement by Dec 10, 2021. It had filed for the same with the SEC on Nov 2, 2021.

The stock rallied on Monday after these announcements. The company had announced the expected date of the registration statement last Friday.

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Source - Pixabay

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Why it needs the registration statement?

The registration statement is required to register its Class A common shares issuable after the conversion of the previously issued convertible senior PIK toggle notes due in 2027.

The notes were originally issued in a private placement with an agreement that the initial purchaser would get the shares upon conversion through the filing of the resale registration statement. The noteholders have the option to convert the notes at the initial conversion rate.

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The New York-headquartered company leverages technology and data analytics to offer solutions to clients. It has partnered with over 700 healthcare payors in different domains, including commercial health, casualty markets, government, and property.

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It launched its IPO in February 2020.

For the September quarter of 2021, its revenue was US$288 million, and the net income was US$78 million. The company has a market capitalization of US$3 billion. The stock traded in the range of US$9.82 to US$3.48 in the last 52 weeks.

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Bottomline

The S&P 500 index rose 26.95% YTD. In the same period, the MPLN stock fell 41.55% YTD. Investors, however, must analyze the company fundamentals carefully before investing in stocks.