Bausch Health Cos (NYSE:BHC) Trading 8.2% Higher - Still a Buy?

Key Points

• Bausch Health shares jumped 8.2% to about $6.53 in Friday trading, with volume 27% above the average.
• The company beat quarterly expectations, reporting adjusted EPS of $1.26 versus estimates of $0.96 and revenue of $2.83 billion versus the $2.59 billion consensus.
• Despite the earnings beat, analyst sentiment remains cautious: five analysts rate the stock Hold and two rate it Sell, producing a consensus “Reduce” rating and an $8.00 price target.

Bausch Health Cos Inc. (NYSE:BHC - Get Free Report)'s share price was up 8.2% during trading on Friday . The company traded as high as $6.50 and last traded at $6.5260. Approximately 2,813,097 shares traded hands during trading, an increase of 27% from the average daily volume of 2,223,536 shares. The stock had previously closed at $6.03.

Wall Street Analyst Weigh In

BHC has been the topic of a number of recent research reports. Zacks Research lowered shares of Bausch Health Cos from a "hold" rating to a "strong sell" rating in a report on Friday, July 24th. Weiss Ratings lowered shares of Bausch Health Cos from a "sell (d)" rating to a "sell (d-)" rating in a research report on Monday, May 4th. Royal Bank Of Canada decreased their price objective on Bausch Health Cos from $10.00 to $9.00 and set a "sector perform" rating on the stock in a report on Monday, April 27th. Finally, Jefferies Financial Group upgraded Bausch Health Cos to a "hold" rating in a research note on Wednesday, July 22nd. Five investment analysts have rated the stock with a Hold rating and two have given a Sell rating to the company's stock. According to MarketBeat.com, the company currently has an average rating of "Reduce" and a consensus price target of $8.00.

Bausch Health Cos Stock Up 10.2%

The firm has a 50 day moving average price of $4.96 and a two-hundred day moving average price of $5.46. The company has a current ratio of 1.32, a quick ratio of 0.97 and a debt-to-equity ratio of 54.68. The firm has a market capitalization of $2.49 billion, a price-to-earnings ratio of -2.24 and a beta of 0.42.

Bausch Health Cos (NYSE:BHC - Get Free Report) last posted its earnings results on Wednesday, July 29th. The company reported $1.26 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $0.96 by $0.30. The business had revenue of $2.83 billion during the quarter, compared to analyst estimates of $2.59 billion. Bausch Health Cos had a negative return on equity of 1,389.97% and a negative net margin of 10.12%. On average, equities analysts expect that Bausch Health Cos Inc. will post 4.05 earnings per share for the current fiscal year.

Insider Buying and Selling at Bausch Health Cos

In other news, Director Frank D. Lee sold 24,456 shares of the stock in a transaction on Tuesday, May 19th. The stock was sold at an average price of $5.43, for a total value of $132,796.08. Following the completion of the transaction, the director owned 49,339 shares of the company's stock, valued at approximately $267,910.77. This represents a 33.14% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which can be accessed through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. 20.67% of the stock is currently owned by company insiders.

Institutional Trading of Bausch Health Cos

Institutional investors and hedge funds have recently added to or reduced their stakes in the business. Caption Management LLC increased its holdings in shares of Bausch Health Cos by 101.1% in the fourth quarter. Caption Management LLC now owns 4,464 shares of the company's stock valued at $31,000 after buying an additional 405,789 shares in the last quarter. Caitong International Asset Management Co. Ltd lifted its holdings in shares of Bausch Health Cos by 12,589.7% during the fourth quarter. Caitong International Asset Management Co. Ltd now owns 4,949 shares of the company's stock valued at $34,000 after purchasing an additional 4,910 shares during the last quarter. Northwestern Mutual Wealth Management Co. lifted its holdings in shares of Bausch Health Cos by 6,661.2% during the third quarter. Northwestern Mutual Wealth Management Co. now owns 5,409 shares of the company's stock valued at $35,000 after purchasing an additional 5,329 shares during the last quarter. Russell Investments Group Ltd. increased its stake in Bausch Health Cos by 65.9% in the 2nd quarter. Russell Investments Group Ltd. now owns 7,819 shares of the company's stock worth $51,000 after purchasing an additional 3,106 shares in the last quarter. Finally, Camelot Portfolios LLC acquired a new stake in Bausch Health Cos during the 4th quarter worth about $59,000. 78.65% of the stock is owned by institutional investors and hedge funds.

Bausch Health Cos Company Profile

Bausch Health Cos Inc, formerly known as Valeant Pharmaceuticals International, is a global specialty pharmaceutical company headquartered in Laval, Quebec, Canada. The company operates through two primary segments: Ophthalmology, led by its Bausch + Lomb franchise, and Diversified Brands, which encompasses prescription dermatology, gastrointestinal, neurology and branded pharmaceutical products. Bausch Health develops, manufactures and markets a range of therapeutic and over-the-counter offerings designed to address conditions such as cataracts, dry eye, glaucoma, acne, rosacea, migraine and gastrointestinal disorders.

The Ophthalmology segment under the Bausch + Lomb name provides products for eye health, including prescription drops, contact lens care solutions, intraocular lenses, surgical instruments and diagnostic devices.

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