Why these 3 ASX shares surged higher today

While the S&P/ASX 200 Index (INDEXASX: XJO) ended the day slightly down, here are 3 ASX shares that have shown strong upward share price movement today.

While the S&P/ASX 200 Index (INDEXASX: XJO) ended the day slightly down, here are 3 ASX shares that have shown strong upward share price movement today.

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AVITA Medical Ltd (ASX: AVH)

After rocketing as much as 7.5% in mid-afternoon trade, the Avita Medical share price closed the day 4.8% higher.

Avita Medical is a global regenerative medicine company with a presence in America, Europe and the Asia Pacific region.

The rise in the Avita Medical share price today appears to be continued momentum from the positive market reaction to the company's second-quarter earnings report released on January 31.

Since that announcement, Avita shares have been on an upward trajectory, up by an impressive 20%.

Avita Medical delivered total revenue of $5.6 million for the second quarter, an increase of 41.6% on the prior corresponding period (pcp). This brought total revenue for the six months to December 31 to $13.53 million, which is up a huge 95.3% on the same period last year.

The main driver of the company's growth in the first half has been its performance in the massive United States market.

Avita Medical's outlook was also positive, with the company believing there to be continued opportunities to drive its revenues even higher in the remainder of 2020.

Redbubble Ltd (ASX: RBL)

Redbubble operates a global online marketplace connecting independent artists with customers.

The Redbubble share price closed the day an impressive 7.34% higher. Redbubble shares have been under pressure recently, falling heavily in mid-December after a surprisingly poor trading update.

The update revealed that the Redbubble branded marketplace underperformed expectations due to an increase in price competition. However, with strong upward movement in the Redbubble share price today, the company now appears to be showing signs of regaining some of those losses.

Redbubble also has a strategy to become carbon neutral, recently launching a global carbon offset program for all the shipping in its supply chain. In addition, Redbubble's print on demand model is designed to limit waste by only making products a customer has bought. 

Paragon Care Ltd. (ASX: PGC)

Paragon is another ASX share that appears to be gaining some upward momentum after recently seeing heavy falls in its share price. The Paragon share price dropped 17% last Monday after announcing 1H FY20 results which were well below market expectations.

The company announced 1H FY20 overall revenue from continuing businesses was $120.7 million, an increase of 1.1% from $119.4 million in FY19.

Paragon reported that Western Biomedical (WBM) revenues declined from $17.1 million in 1H FY19 to $9.5 million in the 1H FY20 due to the loss of a number of key clients/contracts.

Additionally, the company reported normalised 1H FY20 earnings before interest, tax, depreciation and amortisation (EBITDA) of approximately $12 million. This represented a 10% margin on revenue, but was still below the 13–14% EBITDA/revenue margin the company was targeting.

The Paragon share price dropped even further on the three trading days following this announcement to be as low as $0.275. However, shares were up by 3.6% on Friday and after a stronger rise today, shares were last trading at $0.31.

Phil Harpur has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. owns shares of Avita Medical Limited. The Motley Fool Australia has recommended REDBUBBLE FPO. 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. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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