Shares in private hospital group Acurity Health jumped to an 11-month high yesterday as almost 3.3 per cent of the company's shares on issue changed hands.
The stock closed up 36 per cent at $5.50, the highest since November last year, on turnover of about $3.3 million.
That is a 3 per cent premium to Acurity's net tangible assets, valued at $5.34 according to NZX data, but still cheaper than the $6 price paid by the Stewart family and the Royston Hospital Trust Board to take control of the company last year.
The spike comes 10 days after the Wellington-based company formerly known as Wakefield Health said underlying earnings were up by between 17 per cent and 23 per cent to a range of $3.3 million to $3.5 million in the six months ended September 30 as the hospital operator clamped down on costs faster than it lost revenue.
It will announce the full results on November 4.
Forsyth Barr head of private wealth research Rob Mercer rates the stock a "hold" with a target price of $5.40.
He said the health sector had good long-term growth underpinning it, with an ageing population likely to fuel demand for elective surgery procedures and feed private sector hospitals.