Why is the Polynovo share price popping 7% on Wednesday?

Three healthcare workers standing together and smiling.Three healthcare workers standing together and smiling.

The Polynovo Ltd (ASX: PNV) share price is trading in the green during the afternoon session on Wednesday.

At the time of writing, shares in the medical devices company are trading 6.33% higher at $1.68 apiece. Earlier this afternoon, they hit an intraday high of $1.695 a share despite no market-sensitive news. It’s worth noting though the company hosted a webcast with its new CEO Swami Raote today.

In broader market moves, the S&P/ASX 200 Health Care index (ASX: XHJ) is rangebound today but has strengthened by around 10% since rolling into the new financial year.

What’s up with the Polynovo share price?

The company’s webcast with CEO Raote was held at 9:30 this morning. Raote was appointed CEO, effective immediately, on 29 July and comes with 30 years’ experience at pharmaceuticals giant Johnson & Johnson.

Most recently, he was “worldwide president for J & J’s Vision Car, a business with 5,600 employees across 120 countries and 2 manufacturing and research and development sites,” the company said in a separate note.

Those tuned in to the webcast today saw Raote answer prepared questions from Polynovo’s chair. There was no price-sensitive information released, nor was the webcast itself seen as price sensitive.

Nonetheless, investors look to have responded positively. Certainly, healthcare shares continue to catch a bid today, especially at the smaller end of town.

Regenerative medicine player Avita Medical Inc (ASX: AVH) is also surging almost 20% on the day, for instance.

As well, there’s a wave of momentum behind the broad sector right now.

As seen below, the healthcare benchmark is leading the way after taking off in June, even outperforming the energy and mining sectors.

TradingView Chart

With these factors in mind, the stage is set for the Polynovo share price to catch a bid today. In fact, 2022 has been a good year for the share so far.

It has clipped a 9.3% gain, despite trading down more than 27% over the past 12 months.

The post Why is the Polynovo share price popping 7% on Wednesday? appeared first on The Motley Fool Australia.

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Motley Fool contributor Zach Bristow has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended POLYNOVO FPO. 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 Scott Phillips.

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