What’s been happening with the Sigma (ASX:SIG) share price?

Shares in healthcare company Sigma have been trending downwards lately. Let’s take a look.

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The Sigma Healthcare Ltd (ASX: SIG) share price is not having a great day today. Sigma shares are down 1.56% at the time of writing to 63 cents a share. In fact, the Sigma share price is now down about 4% since last Friday.

So let’s take a look at what Sigma has been up to lately.

Firstly, it’s interesting to note that Sigma has recently announced the impending departure of former managing director and CEO Mark Hooper. Mr Hooper tended his resignation in late April after heading the company for almost 11 years. He will depart Sigma by the end of October.

As we reported at the time, this move wasn’t greeted with enthusiasm by investors, who sent Sigma shares down close to 4% at the time. The company is still searching for a replacement for Mr Hooper.

More recently, merger and acquisition (M&A) rumours have been swirling around Sigma. M&A is reportedly hot right now. According to a report in the Australian Financial Review (AFR) today, Australia is on track for a record year of M&A, with $82.8 billion worth of deals announced in 2021 so far. That is well above the average of $25.8 billion annually over the past 5 years (excluding 2020 when COVID-19 stopped M&A in its tracks).

A separate AFR report this week once again linked Sigma to Australia Pharmaceutical Industries Ltd (ASX: API). API has circled Sigma in the past, most recently in 2018.

While that potential deal fell through, the AFR reports that both companies’ chairs have met up in recent weeks. As the report noted, Sigma is now the larger company, unlike in 2018 when API was the larger company.

About the Sigma share price

Sigma Healthcare is a leading network of independent and franchised pharmacies and healthcare providers across Australia.

Sigma shares have been virtually flat year-to-date, rising 2.42% in 2021 so far, while they have climbed 9.5% over the past year. At the current share price of 63 cents, Sigma has a market capitalisation of $672.6 million.

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Motley Fool contributor Sebastian Bowen has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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