Home health stocks saw mixed success in February, according to the latest Home Health Index (HHI) from mergers-and-acquisitions advisory firm Stoneridge Partners. The up-and-down February follows a largely positive January.
Updated monthly, the HHI by Stoneridge Partners tracks the market values for Amedisys Inc. (Nasdaq: AMED) and LHC Group Inc. (Nasdaq: LHCG).
Overall, the HHI was down 2.63% in February compared to January. The S&P 500, in comparison, jumped 3.28% during the same period.
Stock values for Baton Rouge, Louisiana-based Amedisys were down 6.46% in February compared to the previous month, according to the HHI. Meanwhile, stock values for Lafayette, Louisiana-based LHC Group were up 2.19% month-over-month.
Year to date, Amedisys and LHC Group stock values are up 4.97% and 13.86%, respectively, according to Stoneridge Partners.
Both home health giants reported their fourth quarter and 2018 financial results toward the end of February, with Amedisys’ 2018 net service revenue increasing 10% to roughly $1.66 billion and LHC Group’s year-end net service revenue climbing 70.3% to $1.81 billion.
“Amedisys and LHC Group both capped off pretty strong years in February,” Stoneridge Partners President Rich Tinsley said in a statement. “Each company has been especially active on the M&A front — particularly with LHC Group engaged in the Almost Family integration throughout the year.”
The HHI does not include Frisco, Texas-based Addus HomeCare Corporation (Nasdaq: ADUS) in its monthly update, though Stoneridge still monitors the company’s stock performance.
Stock values for Addus were up 8.90% in February compared to January, according to Stoneridge Partners.
“Results for home health stocks were mixed last month, but overall we’re still seeing strong year-to-date performance,” Tinsley said. “And February brought positive news for Addus stock, which rebounded nicely after a dip to start off 2019.”
Addus’ net service revenues totaled $518.1 million in 2018, up 21.6% compared to 2017.