Shares of Performant Financial Corp. rocketed 39% in active morning trade Friday, after the company said it won a new contract to provide collection services on defaulted federal student loans. Volume topped 1 million shares within a minute after the open, compared with the full-day average of about 39,000 shares, according to FactSet. The company said the Department of Education has capped the total award amount for the contract, which runs from Jan. 11, 2018 through Jan. 10, 2023, at $400 million. Performant said it didn’t expect to recognize “meaningful” revenue from the contract until nine or tenth months after placements begin, and expect to incur additional expenses in the short term as it prepares initiate services under the new contract. The stock has rallied 21% over the past 12 months, while the S&P 500 has climbed 22%.
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