Bausch Health Cos (NYSE:BHC) Shares Gap Up on Insider Buying Activity

Key Points

• Bausch Health Cos shares surged from a previous close of $7.51 to an opening of $7.95 after Director John Paulson purchased over 34.7 million shares at $9.00 each, representing a 96.35% increase in his ownership.
• Analysts have set a new target price for Bausch Health, with Royal Bank of Canada raising it from $8.50 to $10.00 and Wall Street Zen upgrading its rating from "hold" to "buy."
• In its latest earnings report, Bausch Health posted earnings of $0.90 per share, missing expectations, but generated revenue of $2.57 billion, exceeding analyst estimates of $2.47 billion.

Bausch Health Cos Inc. (NYSE:BHC - Get Free Report)'s share price gapped up prior to trading on Friday following insider buying activity. The stock had previously closed at $7.51, but opened at $7.95. Bausch Health Cos shares last traded at $7.79, with a volume of 2,629,741 shares changing hands.

Specifically, Director John Paulson acquired 34,721,118 shares of Bausch Health Cos stock in a transaction that occurred on Thursday, August 14th. The shares were acquired at an average price of $9.00 per share, with a total value of $312,490,062.00. Following the completion of the purchase, the director owned 70,755,869 shares of the company's stock, valued at approximately $636,802,821. This represents a 96.35% increase in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink. Also, Director John Paulson bought 86,409 shares of the stock in a transaction on Wednesday, August 13th. The stock was purchased at an average cost of $7.06 per share, with a total value of $610,047.54. Following the completion of the purchase, the director directly owned 36,034,751 shares in the company, valued at $254,405,342.06. This trade represents a 0.24% increase in their position. The disclosure for this purchase can be found here. In other Bausch Health Cos news, Director John Paulson acquired 1,156,640 shares of the firm's stock in a transaction dated Tuesday, August 12th. The shares were acquired at an average price of $6.88 per share, for a total transaction of $7,957,683.20. Following the completion of the acquisition, the director directly owned 35,948,342 shares of the company's stock, valued at $247,324,592.96. This trade represents a 3.32% increase in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available at the SEC website.

Wall Street Analysts Forecast Growth

Several equities analysts recently commented on BHC shares. Royal Bank Of Canada upped their target price on Bausch Health Cos from $8.50 to $10.00 and gave the company a "sector perform" rating in a research note on Friday, May 2nd. Wall Street Zen upgraded Bausch Health Cos from a "hold" rating to a "buy" rating in a report on Saturday, August 2nd.

Bausch Health Cos Stock Performance

The company has a quick ratio of 0.98, a current ratio of 1.31 and a debt-to-equity ratio of 141.90. The company has a market cap of $2.97 billion, a PE ratio of 30.85 and a beta of 0.41. The stock's 50 day simple moving average is $6.44 and its two-hundred day simple moving average is $6.01.

Bausch Health Cos (NYSE:BHC - Get Free Report) last posted its quarterly earnings results on Wednesday, July 30th. The company reported $0.90 earnings per share (EPS) for the quarter, missing analysts' consensus estimates of $0.97 by ($0.07). The firm had revenue of $2.57 billion for the quarter, compared to analysts' expectations of $2.47 billion. Bausch Health Cos had a net margin of 0.99% and a negative return on equity of 852.36%. As a group, research analysts anticipate that Bausch Health Cos Inc. will post 4.41 earnings per share for the current year.

Institutional Inflows and Outflows

Hedge funds have recently bought and sold shares of the business. Goldentree Asset Management LP grew its stake in Bausch Health Cos by 13.2% during the second quarter. Goldentree Asset Management LP now owns 34,254,889 shares of the company's stock worth $227,848,000 after buying an additional 4,004,889 shares during the period. Paulson & CO. Inc. raised its stake in shares of Bausch Health Cos by 24.0% in the 2nd quarter. Paulson & CO. Inc. now owns 32,791,702 shares of the company's stock valued at $218,393,000 after acquiring an additional 6,352,667 shares during the period. Nomura Holdings Inc. lifted its holdings in shares of Bausch Health Cos by 106.2% during the 1st quarter. Nomura Holdings Inc. now owns 23,395,000 shares of the company's stock valued at $151,366,000 after acquiring an additional 12,050,000 shares in the last quarter. Vanguard Group Inc. boosted its position in Bausch Health Cos by 0.5% during the 1st quarter. Vanguard Group Inc. now owns 11,746,480 shares of the company's stock worth $76,152,000 after purchasing an additional 61,621 shares during the period. Finally, Maple Rock Capital Partners Inc. boosted its position in Bausch Health Cos by 14.9% during the 2nd quarter. Maple Rock Capital Partners Inc. now owns 7,808,487 shares of the company's stock worth $52,005,000 after purchasing an additional 1,010,987 shares during the period. Hedge funds and other institutional investors own 78.65% of the company's stock.

Bausch Health Cos Company Profile

Bausch Health Companies Inc operates as a diversified specialty pharmaceutical and medical device company in the United States and internationally. It develops, manufactures, and markets a range of products primarily in gastroenterology, hepatology, neurology, dermatology, international pharmaceuticals, over-the-counter (OTC) products, aesthetic medical devices, and eye health.