Accretive Health Shares Popped: What You Need to Know

Updated

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 health care services provider Accretive Health (NYS: AH) were looking quite healthy to investors today, as they rose as much as 20% in intraday trading after a Wall Street upgrade.

So what:UBS (NYS: UBS) rode in on the white horse for Accretive shareholders today, giving the stock a sweet "buy" recommendation in new coverage. Though the thumbs up from UBS gave the stock a huge boost early in the day, that waned as the day wore on and the gain had dwindled to 4.5% as of this writing.

Now what: There's certainly good reason for investors to be excited about a new buy rating on Accretive's stock. However, the opinion of UBS doesn't change the underlying value of Accretive the company. For that reason, it may not be all that surprising that much of the early pop on the stock has disappeared. Foolish investors that are watching Accretive can take some additional confidence from UBS' view, but their best bet is to continue to focus on the company's execution and how it's able to build value.

Want to keep up to date on Accretive Health?Add it to your watchlist.

At the time thisarticle was published 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.Fool contributor Matt Koppenheffer does not have a financial interest in any of the companies mentioned. You can check out what Matt is keeping an eye on by visiting his CAPS portfolio, or you can follow Matt on Twitter @KoppTheFool or Facebook. The Fool's disclosure policy prefers dividends over a sharp stick in the eye.

Copyright © 1995 - 2011 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.

Advertisement