NIB Holdings (ASX:NHF) share price hits new 52-week high today

The health care fund’s share price reached a milestone this morning.

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The NIB Holdings Limited (ASX: NFH) share price has hit a new 52-week high during today’s session.

At the time of writing, the NIB share price has dipped 1.52% into the red, after starting the day in the green and hitting an intraday high of $6.61.

This morning’s trading volume was around 9% higher than the 20-day average volume-at-time (AVAT) seen for that time of day.

Let’s cover NIB Holdings’ share price in a bit more detail.

What has NIB Holdings been up to lately?

NIB shares hit their 52-week high despite no market-sensitive information that may have impacted the company’s share price today.

Back on 23 June, NIB chief executive Mark Fitzgibbon stated there will be a paradigm shift towards a focus on medical care within the home going forward, Bloomberg LP reports.

Fitzgibbon also mentioned that NIB is aiming to provide networks within its existing channels that will connect to people in their residence or other care centres.

Speaking on these secular trends in healthcare, Fitzgibbon stated:

100 years ago about 90% of health care was practiced at home. Now, I’m not saying 100 years from now we’ll be back to 90% at home, but that’s the direction.

NIB shares have climbed more than 5% since this announcement.

Earlier in May, the ACCC also withdrew its case against NIB, originally filed for NIB’s changes to its MediGap scheme which covered customers’ Medicare services when they weren’t bulk billed.

At that time, ACCC chair Rod Sims stated:

We are pleased the industry has significantly changed practices since 2015 to ensure greater transparency for consumers, including NIB’s change of its approach and commitment to continue informing customers about changes that may affect their out–of–pocket expenses for ongoing treatment ahead of the changes occurring.

NIB share price snapshot

Today’s gains extend the run for NIB’s shares this year-to-date. Since January 1, the NIB share price has gained 8.7%, building out a 12-month return of 38.4% for the company.

These returns have outpaced the S&P/ASX 200 Index (ASX: XJO)’s return over these time periods, with the Index posting returns of 9.7% and 21.9% during the year-to-date and last 12 months respectively.

Over the last 1 month, the NIB share price has gained a further 1.25% and has set 3 new 52-week highs during the past 2 weeks.

At the current share price, NIB has a market capitalisation of $3 billion and trades at a price-to-earnings ratio of about 30.

The company also pays a 20 cents per share dividend, fully-franked, giving a current dividend yield of 2.15%. NIB has made good on each dividend payment since September 2009.

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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 recommended NIB Holdings Limited. 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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