Bausch Health Cos (NYSE:BHC) Trading 9.7% Higher - Here's What Happened

Key Points

• Bausch Health Cos shares increased by 9.7% during mid-day trading, reaching a last traded price of $6.31, despite a significant drop in trading volume compared to average daily levels.
• The company reported quarterly earnings of $0.90 per share, which was below analyst estimates, but its revenue surpassed expectations at $2.57 billion.
• Insider buying activity has notably increased, with Director John Paulson purchasing over 3.5 million shares recently, indicating strong confidence in the company's future performance.

Bausch Health Cos Inc. (NYSE:BHC - Get Free Report) shares were up 9.7% during mid-day trading on Monday . The company traded as high as $6.21 and last traded at $6.31. Approximately 809,278 shares changed hands during trading, a decline of 66% from the average daily volume of 2,367,446 shares. The stock had previously closed at $5.75.

Analyst Ratings Changes

Several brokerages have issued reports on BHC. Royal Bank Of Canada lifted their target price on shares of Bausch Health Cos from $8.50 to $10.00 and gave the company a "sector perform" rating in a research report on Friday, May 2nd. Wall Street Zen raised shares of Bausch Health Cos from a "hold" rating to a "buy" rating in a report on Saturday, August 2nd.

Bausch Health Cos Price Performance

The company has a debt-to-equity ratio of 141.90, a current ratio of 1.31 and a quick ratio of 0.98. The firm has a market capitalization of $3.09 billion, a P/E ratio of 32.08 and a beta of 0.41. The firm's 50 day simple moving average is $6.38 and its two-hundred day simple moving average is $6.03.

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

Insider Buying and Selling

In other Bausch Health Cos news, Director John Paulson purchased 34,721,118 shares of the stock in a transaction on Thursday, August 14th. The stock was acquired at an average price of $9.00 per share, with a total value of $312,490,062.00. Following the transaction, the director directly owned 70,755,869 shares of the company's stock, valued at approximately $636,802,821. This trade represents a 96.35% increase in their position. The purchase was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this link. In the last three months, insiders have acquired 44,316,834 shares of company stock worth $369,628,560. Corporate insiders own 8.05% of the company's stock.

Hedge Funds Weigh In On Bausch Health Cos

A number of hedge funds and other institutional investors have recently made changes to their positions in the business. JPMorgan Chase & Co. raised its holdings in Bausch Health Cos by 1,246.0% in the 4th quarter. JPMorgan Chase & Co. now owns 19,840 shares of the company's stock worth $160,000 after purchasing an additional 18,366 shares in the last quarter. Two Sigma Investments LP raised its stake in Bausch Health Cos by 688.2% in the fourth quarter. Two Sigma Investments LP now owns 265,461 shares of the company's stock worth $2,140,000 after buying an additional 231,781 shares in the last quarter. Universal Beteiligungs und Servicegesellschaft mbH bought a new position in shares of Bausch Health Cos in the 4th quarter worth approximately $468,000. Maple Rock Capital Partners Inc. raised its position in shares of Bausch Health Cos by 156.7% in the 4th quarter. Maple Rock Capital Partners Inc. now owns 5,300,000 shares of the company's stock worth $42,718,000 after acquiring an additional 3,235,100 shares in the last quarter. Finally, Raymond James Financial Inc. bought a new position in Bausch Health Cos in the fourth quarter worth $180,000. 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.