Livongo Health (NASDAQ:LVGO) stands out as one of the stocks that have benefited tremendously from the COVID-19 pandemic this year. The company’s digital health platform helps individuals manage chronic conditions like diabetes and hypertension. With the pandemic increasing the need for remote health monitoring and personalized healthcare, Livongo was in the right place at the right time.
Some investors were also in the right place at the right time by buying Livongo shares at the company’s initial public offering last year. They’ve won big from the rise of the healthcare stock in 2020. Here’s how much you would have now if you’d invested $10,000 in Livongo Health’s IPO.
Counting the cash
If you’d been able to buy at Livongo’s IPO price of $28, an initial investment of $10,000 would have given you 357 shares. If we assume you didn’t buy partial shares, you would’ve had a few bucks left over to buy a cup of coffee or two.
Of course, not everyone is able to get in on an IPO. Most investors have to wait until a stock begins trading to buy it. This would have made a big difference with Livongo’s IPO. Its shares opened at $40.51 on July 25, 2019 — nearly 45% above its IPO price. An initial investment of $10,000 at the market open of Livongo’s first trading day would have gotten you 246 shares. You would’ve had over $34 left over; enough to buy a decent meal.
It’s possible (and perhaps probable) that you would’ve regretted your investment for several months. Livongo closed out 2019 down more than 10% from its IPO price and down 34% from its first day of trading, but the stock went on a tear in 2020.
If you’d held onto your Livongo