By Jeffrey T. Lewis


SAO PAULO--Hapvida Participacoes e Investimentos SA's shares rose 5.8% in late-morning trading Wednesday after the hospital operator unveiled a share buyback plan.

The shares rose to 6.90 reais, the equivalent of $1.39, after falling 17% on Tuesday for a decline of about 37% from the start of this year through Tuesday's close. Brazil's benchmark Ibovespa stocks index was down 1.1% at the same time.

The company, which was formed from a merger in February of this year, said its board approved a plan to buy back up to 400 million of its shares to hold as treasury stock.

The healthcare provider's shares fell on Tuesday after the company reported a loss in the first quarter. Hapvida's earnings momentum is set to improve, helped by the gradual capture of synergies and by expected organic growth, analysts at investment bank BTG Pactual said in a research note. BTG reiterated its buy recommendation for the shares.


Write to Jeffrey T. Lewis at jeffrey.lewis@wsj.com)


(END) Dow Jones Newswires

05-18-22 1119ET