Three of the most prominent publicly traded home health companies had a banner month in April, with their stock market performance setting a new record and outpacing the S&P 500 index overall.
Specifically, the average market value of LHC Group (Nasdaq: LHCG), Almost Family (Nasdaq: AFAM) and Amedisys (Nasdaq: AMED) has surpassed its previous record high reached in August 2015, according to the monthly index released by merger and acquisition advisory firm Stoneridge Partners. The Stoneridge Partners Home Health Index (HH Index) grew 4.23% in April 2016, compared with March 2016.
The index’s previous high occurred in August 2015.
LHC Group experienced the highest increase of the three companies, recording an 11.85% uptick in its stock price in April, according to Stoneridge Partners.
Addus HomeCare (Nasdaq: ADUS), meanwhile, saw its share price rise 7.08% during the month, Stoneridge said, though Addus is not tracked by the the HH Index because its revenue is more heavily reliant on Medicaid reimbursements.
“Home health companies experienced strong performance in the first several months of 2015, marked by an uptick in share prices year-to-date,” Stoneridge Partners President and CEO Rich Tinsley said in a prepared statement. “Operators continue to adapt to the changing payment landscape and patient mix, and have a positive outlook on future mergers and acquisitions.”
The HH Index level has risen 8.95% year-to-date, and is up 30.26% for the trailing 12-month period, according to Stoneridge Partners.
Meanwhile, the S&P, which is used as a benchmark for the Home Health Index, rose 5.56% in April, but is down 20 points.
Written by Mary Kate Nelson