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

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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%.

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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.

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