Why the Pro Medicus (ASX:PME) share price is up 3% in a week

It’s been a good few days for the provider of medical imaging software. We take a closer look
The post Why the Pro Medicus (ASX:PME) share price is up 3% in a week appeared first on The Motley Fool Australia. –

The Pro Medicus Limited (ASX: PME) share price continues its run into the green today.

Pro Medicus shares are changing hands at $59.60 apiece in afternoon trading, up 1.2% on the day.

Let’s take a look at the tailwinds behind the company’s share price.

But first, a quick recap on Pro Medicus

Pro Medicus is a provider of medical imaging software to clinics and hospitals.

Its footprint is in Australia, North America, and Europe, supplying radiology information and imaging systems to these markets.

At the time of writing, Pro Medicus has a market capitalisation of $6.1 billion.

What has Pro Medicus been up to lately?

Pro Medicus shares have set two all-time highs recently, including today, when prices reached an intraday high of $60.55.

The momentum behind the company’s share price has been gathering steam since the beginning of the year.

Back in January, the company announced it had signed a 7-year contract with Salt Lake City company Intermountain Healthcare.

According to Pro Medicus, the deal will yield a total of $40 million spread over the 7 years.

Following this, the company also announced that its US subsidiary Visage Imaging had confirmed a collaboration with the University of Vermont.

Under the agreement, Pro Medicus will install and roll out its systems in six hospitals under the University’s control.

Moreover, it was revealed back on 3 June that Pro Medicus entered into an agreement with the US research giant Mayo Clinic through Visage.

The focus of this deal is to develop and commercialise Pro Medicus’ artificial intelligence algorithm, the Visage AI Accelerator platform.

Since this fundamental momentum began in January, Pro Medicus shares have climbed 74% this year to date.

This has extended into the previous 5 trading sessions, in which the company has walked a further 3.5% into the green.

Therefore, while there has been no market sensitive information from the company since June, it stands to reason that investors continue to buy Pro Medicus shares on the back of these advancements in the company’s growth engine.

Pro Medicus share price snapshot

The Pro Medicus share price has posted an impressive return of 140% over the previous 12 months.

This has outpaced the S&P/ASX 200 Index (ASX: XJO)’s return of 21% over the same period.

The company also pays a 14 cents per share dividend, giving a current yield of 0.22%.

The post Why the Pro Medicus (ASX:PME) share price is up 3% in a week appeared first on The Motley Fool Australia.

Wondering where you should invest $1,000 right now?

When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for more than eight years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

Scott just revealed what he believes could be the five best ASX stocks for investors to buy right now. These stocks are trading at near dirt-cheap prices and Scott thinks they could be great buys right now.

*Returns as of May 24th 2021

More reading

3 reasons why Pro Medicus (ASX:PME) is a top class share
These ASX 200 shares are the most tightly held by individual insiders

Pro Medicus (ASX:PME) share price soars to all-time high
How did the S&P/ASX All Technologies Index (XTX) perform in FY21?

The 5 best ASX 200 healthcare shares of financial year 2021

The author Zach Bristow has no positions in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and has recommended Pro Medicus Ltd. The Motley Fool Australia owns shares of and has recommended Pro Medicus Ltd. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

Trade The World Anywhere & Anytime!

Mobile app platform with over 50,000 global listed securities across 12 markets (over 70% global market capitalisation), right from your Android or iOS device.

Integrated with exclusive trading idea and investment analysis tools to help you find actionable insight on virtually every financial instrument across our 12 global markets, to help you optimise your trading strategies.

Refer Your Friends

Tell your friends about Monex and gift them FREE access to our trading tools.

We respect your privacy and will only send this one email notification to your friends. 

Share With Your Friends

Share on facebook
Share on twitter
Share on linkedin

Monex Trading Tools Access and Usage Terms

The Monex Trading Tools (referred to as ‘tools’ hereafter) are available to you inside your client portal;

To activate access to the tools, you must have a verified and approved trading account and have made a deposit of at least AUD $1000.

An active and funded account with a positive trading balance is required to continue to have access to the tools;

Although the tools are available to you indefinitely, Monex Securities may at it’s discretion disable access to the tools in the future;

Monex securities reserves the right to change these terms and conditions from time to time, as it sees fit, without notice.

Important Notice
iOS & Android App - 12 International Markets & Over 70% Global Market Cap. $0 Brokerage On US Trades. Click Here!