Why Nutex Health's Shares Fell 27.8% on Friday
Shares of Nutex Health (NASDAQ: NUTX), a healthcare services company that owns 21 micro hospitals in eight states and operates primary care provider networks, plummeted 27.76% to $0.65 on Friday. It appears selling by insiders may have been putting pressure on the stock.
The healthcare stock has been steadily declining since Aug. 18, when it hit $4.18 per share, but the sell-off has accelerated since a lockout period ended Oct. 1 for insiders who had been issued stock worth $3.50 a share as part of the company's merger with Clinigence Holdings. With no explanatory releases coming from Nutex, other investors who owned shares added to the selling. The company only began listing on the Nasdaq on April 4 and is down more than 84% so far this year.
Nutex has been struggling. In the second quarter, it reported revenue of $137.2 million through six months, down 13% year over year. It posted a net loss of $19.4 million and a per-share loss of $0.03, citing increased expenses, including those connected with the merger with Clinigence. That compares with net income of $29.7 million and earnings per share of $0.05 in the year-ago period. The company is in the midst of expansion and said in its Q2 report it plans to open 20 new facilities by the end of 2024.
Source Fool.com
