Bausch Health Cos Inc. (BHC) - What Are Investment Firms Thinking About This Stock?

Key Points

• Analyst sentiment is mostly neutral: Seven brokerages give Bausch Health a consensus “Hold” rating, with five holds, one sell and one strong buy. The average 12-month price target is $8.00 versus the stock’s $5.92 opening price.
• Institutional ownership is substantial: Hedge funds and other institutions own 78.65% of BHC, with Paulson & Co. and MFN Partners among firms establishing new positions; RBC also increased its stake by 24.9%.
• Recent results exceeded expectations, but financial health remains weak: Quarterly EPS came in at $1.26 versus the $0.96 consensus, while revenue reached $2.83 billion against $2.59 billion expected. However, the company reported a negative net margin and extremely negative return on equity, and an insider recently sold shares under a pre-arranged plan.

Bausch Health Cos Inc. (NYSE:BHC - Get Free Report) has been assigned a consensus recommendation of "Hold" from the seven brokerages that are covering the company, Marketbeat Ratings reports. One equities research analyst has rated the stock with a sell recommendation, five have given a hold recommendation and one has given a strong buy recommendation to the company. The average 1 year price target among brokers that have covered the stock in the last year is $8.00.

A number of equities research analysts recently issued reports on the stock. Jefferies Financial Group upgraded shares of Bausch Health Cos to a "hold" rating in a report on Wednesday, July 22nd. Zacks Research raised shares of Bausch Health Cos from a "hold" rating to a "strong-buy" rating in a research report on Monday, September 21st. Royal Bank Of Canada reaffirmed a "sector perform" rating and set a $9.00 price target on shares of Bausch Health Cos in a research note on Thursday. Weiss Ratings upgraded shares of Bausch Health Cos from a "sell (d-)" rating to a "sell (d)" rating in a report on Friday, July 31st. Finally, Wall Street Zen upgraded shares of Bausch Health Cos from a "buy" rating to a "strong-buy" rating in a report on Saturday, August 1st.

Insider Activity at Bausch Health Cos

In related news, insider Aimee Lenar sold 36,827 shares of the stock in a transaction on Wednesday, August 19th. The stock was sold at an average price of $7.03, for a total value of $258,893.81. Following the transaction, the insider directly owned 334,853 shares of the company's stock, valued at approximately $2,354,016.59. This trade represents a 9.91% decrease in their position. The sale was disclosed in a filing with the SEC, which can be accessed through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. 20.67% of the stock is currently owned by insiders.

Institutional Investors Weigh In On Bausch Health Cos

A number of institutional investors have recently added to or reduced their stakes in BHC. Paulson & CO. Inc. acquired a new stake in shares of Bausch Health Cos in the second quarter worth $361,151,000. MFN Partners Management LP purchased a new position in shares of Bausch Health Cos in the 2nd quarter valued at $29,580,000. Royal Bank of Canada raised its stake in shares of Bausch Health Cos by 24.9% in the 1st quarter. Royal Bank of Canada now owns 11,363,498 shares of the company's stock valued at $61,362,000 after acquiring an additional 2,262,894 shares during the period. Man Group plc acquired a new position in shares of Bausch Health Cos during the 2nd quarter valued at $7,157,000. Finally, Bank of America Corp DE acquired a new position in shares of Bausch Health Cos during the 2nd quarter valued at $2,816,000. Hedge funds and other institutional investors own 78.65% of the company's stock.

Bausch Health Cos Trading Down 1.9%

Shares of NYSE:BHC opened at $5.92 on Tuesday. The stock's 50-day moving average price is $6.18 and its two-hundred day moving average price is $5.57. Bausch Health Cos has a 12-month low of $4.33 and a 12-month high of $8.00. The firm has a market cap of $2.22 billion, a price-to-earnings ratio of -2.00 and a beta of 0.37.

Bausch Health Cos (NYSE:BHC - Get Free Report) last posted its quarterly earnings results on Wednesday, July 29th. The company reported $1.26 EPS for the quarter, beating the consensus estimate of $0.96 by $0.30. The company had revenue of $2.83 billion during the quarter, compared to analysts' expectations of $2.59 billion. Bausch Health Cos had a negative return on equity of 561.95% and a negative net margin of 10.12%. As a group, research analysts forecast that Bausch Health Cos will post 4.35 earnings per share for the current fiscal year.

Bausch Health Cos Company Profile

Bausch Health Companies Inc is a multinational specialty pharmaceutical company headquartered in Laval, Quebec. The company develops, manufactures and markets prescription medicines, branded and generic pharmaceuticals, over-the-counter products and medical devices across a range of therapeutic areas.

Its business includes Salix Pharmaceuticals, which focuses on gastrointestinal treatments; Ortho Dermatologics, which develops prescription therapies for dermatological conditions; and Solta Medical, which provides energy-based medical and aesthetic devices.

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