The investment climate continues to be favorable to home health, with three of the nation’s largest publicly traded providers having a historically good November on Wall Street.
The Stoneridge Partners Home Health Index tracks the monthly changes in share price of Almost Family (NASDAQ: AFAM), Amedisys (NASDAQ: AMED) and LHC Group (NASDAQ: LHCG). Overall, the Index surged 5.5% over October and November, hitting a new record-high of $43.17.
On a monthly basis, LHC Group led with a 3.3% uptick in November. Amedisys was up 2.6% and Almost Family 2.1%.
The previous all-time high for the Index was $42.55, achieved four months ago. That was a high-water mark after tough years following the economic crisis, which saw the Index hit a low of $11.64 in 2011.
The performance of the home health companies came as the overall market bounced back following a turbulent summer. The S&P 500 was up more than 8% through October and November.
Home health companies also currently are commanding high prices when put up for sale, Stoneridge noted.
“Agencies and hospices with strong earnings and good accounting and management records are in great demand, with prices higher than we have seen in years,” the Index notes.
Similar trends are being seen in other sectors as well. Prices for senior housing providers have gotten so high that some executives believe the M&A market has peaked, and will become friendlier to buyers in 2016.