The Medibank (ASX:MPL) share price is up 18% so far in 2021. Here's why

Here's what's driven the Medibank share price this year.

| More on:

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

The Medibank Private Ltd (ASX: MPL) share price has been having a great year so far on the ASX.

Perhaps more impressive, the health insurance and solutions company's gains have come despite it only releasing news a handful of times.

Right now, the Medibank shares are trading for $3.54 apiece, 17.28% higher than they were at the start of 2021.

Let's take a closer look at what the S&P/ASX 200 Index (ASX: XJO) company has been up to in 2021.

ASX share price movement represented by doctor pressing digitised screen with array of icons including one entitled health insurance,

Image source: Getty Images

What's driven the Medibank share price in 2021?

It's been a good year for Medibank shares, despite the company keeping relatively quiet. Here's what we've heard from Medibank in 2021.

Myhealth acquisition

In early February, Medibank announced it had acquired a non-controlling 33.4% interest in Myhealth Medical Group.

Myhealth operates 86 primary care clinics scattered across Victoria, New South Wales, and Queensland.

According to Medibank, the investment strengthened its focus on preventive health and doctor-led partnerships.

The Medibank share price didn't react to the news.

Half yearly results

A matter of weeks later, Medibank released its results for the first half of financial year 2021.

For the 6 months ended 31 December 2020, Medibank recorded net profits after tax of $226.4 million, a 27.3% increase on those of the prior corresponding period.

It also reported that its income from premiums rose 0.3% to $3.3 billion, while its net claims expenses dropped $24.1 million – or 0.8%.

Medibank also announced a 5.8 cent fully franked dividend.

Finally, the company announced its CEO, Craig Drummond, was to retire. Medibank's new CEO David Koczkar took over the role on 17 May.

The Medibank share price fell 3.4% on the back of the results.

Returning money to customers

Lastly, in April Medibank announced that it plans to return around $105 million it's saved during COVID-19 to its customers.

According to Medibank, the savings came from its customers deferring their claims due to the global pandemic.

The Medibank share price fell 0.6% the day the company announced the give-back.

Medibank share price snapshot

After starting 2021 at $3.04, the Medibank share price is now $3.54.

It has also gained 24% since this time last year.

Motley Fool contributor Brooke Cooper 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.

More on Healthcare Shares

A man with a perplexed expression on his face scratches his head.
Healthcare Shares

4DMedical shares are up 670% — but why have they halved?

Can the company turn its commercial momentum into another explosive share-price rebound?

Read more »

Businesswoman with a pleased smile reading on her laptop at a desk in the office with a look of satisfaction.
Healthcare Shares

Are CSL shares dirt cheap and a strong buy?

There is plenty for CSL to prove next week. The current valuation is why I am still interested.

Read more »

Medical workers examine an x-ray or scan in a hospital laboratory.
Healthcare Shares

Why this ASX healthcare stock is a top rebound candidate with big upside 

This could be a perfect buy-low candidate.

Read more »

Doctor sees virtual images of the patient's x-rays on a blue background.
Healthcare Shares

2 ASX healthcare stocks tipped to return 34% to 63%

These companies could be poised for much bigger things.

Read more »

Smiling couple looking at a phone at a bargain opportunity.
ASX Share Market News

Are Pro Medicus shares now too cheap to ignore?

The discount looks tempting, but slowing growth could expose valuation risks.

Read more »

Two ASX share investors sharing a secret.
Healthcare Shares

Cochlear shares are quietly rebounding: Is a bigger rally coming?

After a 58% plunge, Cochlear doesn’t need perfection to surprise investors.

Read more »

Scientists working in the laboratory and examining results.
Healthcare Shares

This ASX biotech is tipped to more than double in value

Encouraging trial results have the analysts excited.

Read more »

person climbing mountain
Healthcare Shares

CSL share price forecast: How high could it climb in the next year?

CSL shares could roar back, but investors need more than hope.

Read more »