Regional Health Properties skyrockets again on Monday: What’s driving the bull run?

By: Wajeeh Khan
Wajeeh Khan
Wajeeh is an active follower of world affairs, technology, an avid reader, and loves to play table tennis in… read more.
on May 3, 2021
  • Regional Health Properties skyrockets in the stock market again on Monday.
  • The NYSE American-listed firm's trading volume jumps well above average.
  • Regional Health Properties now has a market capitalisation of £15.68 million.

Regional Health Properties Inc. (NYSEAMERICAN: RHE) is grabbing a lot of attention since last week. The stock was particularly raging on Friday when it closed the regular session with an about 40% gain.

The premarket trading on Monday continued the bull run as shares were reported roughly 25% up. Regional Health Properties has gained another 45% since market open on Monday. Here’s what you need to know about why do prices rise and fall in the stock market.

Regional Health’s trading volume jumps well above average

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The trading volume has a unique story to tell as well. According to Yahoo Finance, volume currently stands at a whopping 29 million, compared to the average trading volume of only 1 million. Shares were halted multiple times as the stock triggered the second, third, and fourth circuit breaker. For the session, Regional Health is still about 63% up.

Other stocks that are going crazy on Monday include Brooklyn Immunotherapeutics that opened close to 40% up but lost roughly 20% in the next hour. The volatility is primarily attributed to its popularity among the retail investors on Reddit.

The price action is exceptionally thrilling since it comes almost a month after Regional Health Properties published its earnings report for the fiscal fourth quarter on April 1st. Other than that, the company has made no announcements in recent days that could serve as a catalyst for such a massive and sudden interest in this stock. Unlike BTX, there is no evidence that Regional Health is a new target of WallStreetBets either.

Regional Health’s fourth-quarter financial results

In its financial update last month, the healthcare and social assistance company said it collected 80% of Q4 cash rent, despite the COVID-19 headwinds. The company also generated positive cash flow in the fourth quarter. On a year over year basis, however, the Suwanee-based company’s total rental revenue still saw a 20.2% year over year decline in Q4.

Regional had also highlighted in its quarterly report that it was successful in transitioning two non-performing facilities, preliminary results for both of which were encouraging in the first two months of 2021.

At the time of writing, Regional Health Properties is trading at £9.42 per share that gives it a market capitalisation of £15.68 million.

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