NEW YORK (TheStreet) -- Shares of Alere (ALR) are up 21.58% to $38.26 on heavy trading volume Thursday afternoon following reports that a Department of Justice investigation might not be as impactful as originally feared.
The stock plunged 29% to $31.47 yesterday after the Wall Street Journal reported that the Justice Department's criminal-fraud unit sent Alere a subpoena seeking patient-billing records. The agency is looking for information about the company's efforts to collect copayments and the forms submitted to government programs on the company's behalf, according to the Journal.
But the subpoena relates to just 44 patient records and impacts less than $15 million in revenue, CNBC's David Faber reported this morning. Alere reported $2.5 billion in annual sales last year.
Faber added that Abbott Laboratories (ABT) is expected to sue Alere to get out of its $56 per share purchase of the company, but the deal will likely close even if the companies go to court.
About 6.76 million shares of Alere have been traded so far today, well above the company's average trading volume of roughly 1.03 million shares per day.
Separately, TheStreet Ratings team rates the stock as a "hold" with a ratings score of C.
Alere's strengths such as its compelling growth in net income, good cash flow from operations and expanding profit margins. However, as a counter to these strengths, we also find weaknesses including a generally disappointing performance in the stock itself and generally higher debt management risk.
You can view the full analysis from the report here: ALR
TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this article's author.