On April 26, 2022, after recently making its public debut, the healthcare company, Nutex Health Inc. (NUTX) had another wild day. Ranging from over 73% gains in the regular session to nearly 11% in the after-hours, NUTX made huge strides. At a crazy volume of 75.43 million shares, the stock witnessed a high of $13.81 in the regular session. Following the after-hours gain, the stock was valued at $8.50 a share. Consequently, NUTX share prices gained 5.21% to $8.08.
While there is an SEC filing from the company, the huge rally seems to be on external factors rather than internal. However, the filing might have been a precursor to instigating investors’ interest once again in the stock.
NUTX’s Latest SEC Filing
The company’s latest SEC filing includes details of the directors’ appointment and agreements in connection to its business combination. Following its business combination, and appointment of independent directors, the company entered into a certain agreement with the directors. The agreements include a Board of Directors Agreement, a Proprietary Information Agreement, and an Indemnification Agreement.
What’s the Fuss then?
Given the contents of the SEC filing, it is highly unlikely to be the cause of the sudden uptick in NUTX on Tuesday.
On April 4, the stock commenced trading on Nasdaq after a reverse merger was completed between Clinigence Holdings Inc. and Nutex Health Holdco LLC. The combination brought together a population health management company together with an independent operator of micro-hospitals and outpatient departments in the U.S. The combined company now has roughly 1500 employees across the country and over 800 partnered physicians.
Since its debut on Nasdaq, the stock has traded in a wild range of $3.82-$52.80 a share. While volatility is expected after a merger, it seems the reverse nature of NUTX’s merger is extending its volatility. It seems external factors have investors viewing the stock as a speculative trading vehicle.
What to Expect Now?
Given the large and continued interest of investors in the stock, NUTX seems to have some more time before the soaring volatility dies down.
On the other hand, the combined company has been a little too quiet since the merger and debut. While the company posed huge enthusiasm for the merger to have put it on the path to attractive growth opportunities, it’s probably going through many changes associated with the merger.
There still seems to be a little more time for NUTX to commence normal trading after the debut volatility subsides. However, the performance will now solely depend on what the company does next to ensure growth.