Bausch Health Cos (NYSE:BHC) Trading Up 9.7% - Still a Buy?

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.

Shares of Bausch Health Cos Inc. (NYSE:BHC - Get Free Report) were up 9.7% during mid-day trading on Monday . The stock traded as high as $6.21 and last traded at $6.31. Approximately 809,278 shares changed hands during mid-day 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 equities research analysts recently issued reports on BHC shares. Wall Street Zen upgraded Bausch Health Cos from a "hold" rating to a "buy" rating in a report on Saturday, August 2nd. Royal Bank Of Canada boosted their target price on Bausch Health Cos from $8.50 to $10.00 and gave the stock a "sector perform" rating in a report on Friday, May 2nd.

Bausch Health Cos Stock Up 16.1%

The stock has a market capitalization of $2.47 billion, a price-to-earnings ratio of 25.68 and a beta of 0.41. The business has a fifty day moving average of $6.10 and a 200 day moving average of $6.02. The company has a debt-to-equity ratio of 141.90, a current ratio of 1.31 and a quick ratio of 0.98.

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

Insider Buying and Selling

In related news, Director John Paulson acquired 3,564,059 shares of the firm's stock in a transaction on Friday, June 13th. The stock was bought at an average price of $5.94 per share, for a total transaction of $21,170,510.46. Following the completion of the purchase, the director directly owned 32,791,702 shares of the company's stock, valued at approximately $194,782,709.88. The trade was a 12.19% increase in their position. The transaction was disclosed in a filing with the SEC, which is accessible through this hyperlink. Insiders acquired a total of 6,352,667 shares of company stock valued at $35,870,767 over the last 90 days. Corporate insiders own 8.12% of the company's stock.

Hedge Funds Weigh In On Bausch Health Cos

Large investors have recently bought and sold shares of the stock. Inspire Advisors LLC acquired a new stake in Bausch Health Cos in the second quarter valued at about $478,000. Universal Beteiligungs und Servicegesellschaft mbH boosted its holdings in shares of Bausch Health Cos by 10.9% in the 2nd quarter. Universal Beteiligungs und Servicegesellschaft mbH now owns 64,310 shares of the company's stock valued at $428,000 after purchasing an additional 6,340 shares during the last quarter. Cetera Investment Advisers increased its stake in Bausch Health Cos by 73.4% during the 2nd quarter. Cetera Investment Advisers now owns 19,849 shares of the company's stock worth $132,000 after buying an additional 8,402 shares during the period. Creative Planning increased its position in shares of Bausch Health Cos by 16.9% in the 2nd quarter. Creative Planning now owns 50,493 shares of the company's stock worth $336,000 after purchasing an additional 7,304 shares during the last quarter. Finally, SG Americas Securities LLC increased its stake in shares of Bausch Health Cos by 114.4% in the second quarter. SG Americas Securities LLC now owns 6,152,986 shares of the company's stock valued at $40,979,000 after purchasing an additional 3,282,684 shares during the period. Institutional investors and hedge funds own 78.65% of the company's stock.

About Bausch Health Cos

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.

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