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

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 1^st. 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.