What happened to the Cochlear share price?
Shares of Cochlear Ltd [ASX:COH] gained more than 14% on Thursday, rebounding after a poor start to February.
Why did Cochlear shares do this?
Cochlear has had a good run since mid-2013 after the share price had fallen from a near record high. But today’s gain has helped to push the stock to a new record and break through the $100 barrier.
The share price gained after the company upgraded its profit forecast, and increased the interim dividend.
What now for Cochlear Ltd?
Cochlear has been labelled as a high growth, high risk, and volatile company, due to the nature of its business in the medical devices sector.
But with strong revenue and profit growth, plus an increase to the dividend, investors could start to look at the stock differently.
However, that won’t stop it from being a high risk proposition. Just as a positive earnings surprise can send the stock soaring, if the company disappoints in the future, even by not growing as quickly as some investors hope, the stock price could quickly turn in the opposite direction