LHC Group Shares Jumped: What You Need to Know
Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.
What: Shares of LHC Group (NAS: LHCG) jumped 10% today on word of insider buying.
So what:Coliseum Capital Management recently disclosed that it bought 22,000 shares, something it must do as an owner of at least 10% of the company. The fund has been adding shares in recent months, and with shares trading near a 52-week low it saw a buying opportunity.
Now what: I'm not reading too much into this move, but this is the kind of move that day traders love to hear. And since LHC has a small market cap, the stock can be very volatile on days like today when the company gets more attention. I would leave this move alone and allow shares to settle lower if you're looking to get into the stock.
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At the time this article was published Fool contributor Travis Hoium does not have a position in any company mentioned. You can follow Travis on Twitter at @FlushDrawFool, check out his personal stock holdings or follow his CAPS picks at TMFFlushDraw.Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.
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