AthenaHealth, Inc shares climbed nearly 18% on Thursday, this happened post activist hedge fund manager Paul Singer of Elliott Associates revealed a 9.2 percent stake in the healthcare software maker.
Singer Believes The Securities Of The Company Are Significantly Undervalued
According to an SEC filing, Paul Singer said – “The securities of the company are significantly undervalued and represent an attractive investment opportunity”. But he also said that there are several operational and strategic opportunities available to maximize the shareholders’ value.
Singer added that the AthenaHealth operates in a highly strategic area, at the connection of technology and healthcare with a disruptive value proposition, a leading competitive position and a compelling product set, the actual value of which is not reflected in the Issuer’s current market value.
Singer’s Future Plans For AthenaHealth
Singer and Elliott Associates may submit their plans, this plan could include asking for changes in the management and a sale of the company or some of its assets.
One of AthenaHealth’s representative said in a statement to CNBC – “We are aware of Elliot’s filing and look forward to talking with them to hear their views about the Company and discuss the actions we are taking to drive enhanced growth and value creation for all athenahealth shareholders.” They also added that they have great confidence in the Company and its future.
While Singer praised AthenaHealth, Elliott Associates representatives did not make any comment on the same.
The hedge fund has been an violent activist over the years, it often targets company’s CEO in its campaign.
Athenahealth, was founded by Jonathan Bush. The company is a provider of online services for doctors and hospitals. Earlier this month in an investor, the co-founder and CEO Bush said the uncertainty around healthcare regulation had been bad for business. He blamed the same on President Trump.
Date: 19 May, 2017