Bausch Health Cos Inc. (NYSE:BHC) Receives Average Recommendation of "Reduce" from Brokerages

Key Points

• Analysts remain cautious: Seven brokerages give Bausch Health an average “Reduce” rating, including one sell and six holds. The average 12-month price target is $8.00, above the cited share price of $5.63.
• Quarterly results exceeded expectations: Bausch Health reported earnings of $1.26 per share versus the $0.96 consensus estimate, while revenue reached $2.83 billion compared with forecasts of $2.59 billion.
• Ownership and trading activity were notable: Institutional investors own 78.65% of the company, while insider Aimee Lenar sold 36,827 shares under a pre-arranged Rule 10b5-1 plan; insiders retain a 20.67% stake.

Shares of Bausch Health Cos Inc. (NYSE:BHC - Get Free Report) have received an average rating of "Reduce" from the seven ratings firms that are currently covering the firm, MarketBeat reports. One equities research analyst has rated the stock with a sell rating and six have assigned a hold rating to the company. The average 12 month price target among brokers that have issued ratings on the stock in the last year is $8.00.

Several equities research analysts have recently commented on the stock. Zacks Research raised shares of Bausch Health Cos from a "strong sell" rating to a "hold" rating in a research report on Thursday, August 20th. Wall Street Zen upgraded Bausch Health Cos from a "buy" rating to a "strong-buy" rating in a research note on Saturday, August 1st. Weiss Ratings raised Bausch Health Cos from a "sell (d-)" rating to a "sell (d)" rating in a report on Friday, July 31st. Finally, Jefferies Financial Group raised Bausch Health Cos to a "hold" rating in a research note on Wednesday, July 22nd.

Insider Buying and Selling

In other Bausch Health Cos news, insider Aimee Lenar sold 36,827 shares of the firm's stock in a transaction on Wednesday, August 19th. The stock was sold at an average price of $7.03, for a total transaction of $258,893.81. Following the transaction, the insider directly owned 334,853 shares in the company, valued at approximately $2,354,016.59. This trade represents a 9.91% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders own 20.67% of the company's stock.

Institutional Trading of Bausch Health Cos

Several institutional investors have recently made changes to their positions in BHC. Paulson & CO. Inc. bought a new position in Bausch Health Cos in the 2nd quarter valued at $361,151,000. Royal Bank of Canada raised its stake in shares of Bausch Health Cos by 24.9% during the 1st quarter. Royal Bank of Canada now owns 11,363,498 shares of the company's stock worth $61,362,000 after purchasing an additional 2,262,894 shares during the period. MFN Partners Management LP purchased a new position in shares of Bausch Health Cos in the 2nd quarter worth about $29,580,000. Norges Bank purchased a new position in shares of Bausch Health Cos in the 4th quarter worth about $25,592,000. Finally, Dimensional Fund Advisors LP grew its position in Bausch Health Cos by 10.8% during the first quarter. Dimensional Fund Advisors LP now owns 3,604,818 shares of the company's stock valued at $19,456,000 after buying an additional 350,823 shares during the period. Institutional investors own 78.65% of the company's stock.

Bausch Health Cos Stock Down 1.0%

BHC stock opened at $5.63 on Friday. The stock's 50 day simple moving average is $5.90 and its 200 day simple moving average is $5.51. The company has a market cap of $2.11 billion, a P/E ratio of -1.90 and a beta of 0.37. The company has a debt-to-equity ratio of 54.68, a quick ratio of 1.08 and a current ratio of 1.44. Bausch Health Cos has a fifty-two week low of $4.33 and a fifty-two week high of $8.00.

Bausch Health Cos (NYSE:BHC - Get Free Report) last issued its earnings results on Wednesday, July 29th. The company reported $1.26 earnings per share for the quarter, topping analysts' consensus estimates of $0.96 by $0.30. Bausch Health Cos had a negative return on equity of 561.95% and a negative net margin of 10.12%.The company had revenue of $2.83 billion for the quarter, compared to analyst estimates of $2.59 billion. On average, research analysts expect that Bausch Health Cos will post 4.35 earnings per share for the current fiscal year.

About Bausch Health Cos

Bausch Health Companies Inc is a multinational specialty pharmaceutical company headquartered in Laval, Quebec. The company develops, manufactures and markets prescription medicines, over-the-counter products and medical devices, with a focus on gastroenterology, neurology, dermatology and other specialty therapeutic areas.

Its portfolio includes gastrointestinal treatments such as Xifaxan, Trulance and Relistor, as well as products for conditions affecting the central nervous system and skin.

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