Performant Financial (NASDAQ:PFMT) stock is soaring higher on Tuesday after the company announced plans to focus on its healthcare services.
Here’s everything investors need to know about PFMT and the recent news affecting the penny stock.
- Performant Financial announced after markets closed yesterday that it is focusing more on its healthcare operations.
- That includes giving these operations priority from future investments.
- This has it aiming to achieve long-term growth and profitability for the business.
- The company notes that it already saw revenue of $68.5 million from its healthcare business in 2020.
- That’s a 58% jump compared to revenue reported by its healthcare operations for the full year of 2019.
- At the same time, Performant Financial revealed its expectations for revenue in 2021.
- PFMT is expecting revenue for the year to range from $83 million to $90 million.
- To go along with this news, the company also announced a deal to sell off certain assets.
- This will have it selling non-healthcare-related assets to “a buyer that specializes in outsourced receivables solutions.”
- Performant Financial is a company with a focus on reducing waste for certain businesses by identifying improper payments and defaulted assets.
- Its business includes healthcare, student loans, and government clients.
- It plans to fulfill current non-healthcare contracts but won’t start new ones or renew old ones.
- The company believes that healthcare is its best bet, which is why it’s focusing it over its other businesses.
- PFMT stock is seeing heavy trading on yesterday’s news.
- That has more than 96 million shares changing hands as of this writing.
- For comparison, its daily average trading volume is about 720,500 shares.
PFMT stock was up 40.8% as of Tuesday morning.
Performant Financial isn’t the only penny stock seeing a boost in trading today.
A handful of other penny stocks are also seeing an increase in interest from investors. Among them are
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On the date of publication, William White did not have (either directly or indirectly) any positions in the securities mentioned in this article.
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