(Updates share price in second paragraph.)
Oct. 28 (Bloomberg) -- MedAssets Inc., a provider of information technology services to health-care companies, jumped the most in three years as earnings results from rivals disappointed investors.
MedAssets rose 14 percent to $11.20 at 4 p.m. New York time, their biggest increase since Oct. 13, 2008. The stock has declined 45 percent this year.
MedAssets, based in Alpharetta, Georgia, is benefiting from this week’s “weakness across the rest of the health IT group,” Michael Cherny, an analyst at Deutsche Bank Securities in New York, said today in an interview. Cerner Corp., Quality Systems Inc., and Computer Programs & Systems Inc. are among electronic health-record vendors who reported earnings with a mix of “disappointing” or “confusing” results, Cherny said today in an interview.
“MedAssets, despite being a health IT vendor, has no exposure to electronic health records,” Cherny said. “For investors who are still investing in health IT but were confused or disappointed by EHR vendors this week, MedAssets has been a place to flock.”
There is “no specific company news” that would cause today’s movement in MedAssets’ share price, Robert Borchert, a company spokesman, said today in an e-mail.
The increase is unrelated to investors’ expectations for the third-quarter earnings that MedAssets will report Nov. 3, said Bret Jones, an analyst at Oppenheimer & Co. in New York.
“I don’t think anybody feels like they’re going to blow out the numbers” in the earnings, Jones said in an interview.
--Editors: Bruce Rule, Andrew Pollack
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