2023-06-21 16:11:53 ET
Shares of Nutex Health (NASDAQ: NUTX) closed Wednesday's trading session 18.4% higher after being up as much as 23.8% earlier in the day. The healthcare company, which operates 20 for-profit micro-hospitals in eight states, as well as a primary-care physician network, said it was opening a micro-hospital in Albuquerque, N.M. The stock is still down more than 74% this year and hit a 52-week low last Friday of $0.38 per share.
The Albuquerque micro-hospital is a 20,000 square-foot facility with an emergency room, eight exam rooms, four inpatient beds, in-house imaging, a pharmacy, and a laboratory. It is the second hospital Nutex has opened this year, following the February opening of a micro-hospital in Fort Smith, Ark. The company said it plans to open three or four more hospitals this year. The expansion was seen as progress for the beaten-down company.
Finances are still a big concern for Nutex. In the first quarter, it reported revenue of $56.4 million, down 28.8%, year over year. It also reported a net loss of $5.2 million, compared to net income of $21.5 in the same period a year ago. The company, which went public in April of 2022, has posted losses in four consecutive quarters and has been trading below $1 per share since April 12, so it is in danger of being delisted from the NASDAQ . One positive sign is company insiders have been loading up on the stock. Chief Financial Officer Jon Bates added 20,000 shares on Tuesday, giving him a total of 89,505 shares of the company. That purchase followed a buy of 10,000 shares on Friday by Nutex director Cheryl Grenas.
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Why Shares of Nutex Health Jumped on Wednesday