Athenahealth Stock Surges 2.5% On Strategic Changes, Including $100 Mln In Cost-saving Opportunities

Athenahealth Inc. shares surged 2.5% in premarket trade Tuesday after the company announced a slate of changes as part of a strategic review, including about $100 million in cost-saving opportunities. Athenahealth also plans to create a president role and separate the roles of chairman and CEO. The company said it would provide more information about cost-saving opportunities, including plans to "significantly" increase operating margins in 2018 and afterwards, by its third quarter earnings release, which is scheduled for October. Athenahealth shares have surged 31.5% year-to-date to $138.32, compared with a 10.3% rise in the S&P 500 .