MFN Partners Management LP Makes New $29.58 Billion Investment in Bausch Health Cos Inc. $BHC

Key Points

• MFN Partners Management LP bought 6 million Bausch Health shares in the second quarter, reportedly valued at $29.58 billion, giving it a 1.6% stake and making BHC its sixth-largest holding.
• Bausch Health exceeded quarterly expectations, reporting $1.26 in EPS versus a $0.96 estimate and revenue of $2.83 billion versus $2.59 billion expected. Analysts also raised several future earnings estimates, citing potential growth at Bausch + Lomb.
• Despite some upgrades, the broader analyst consensus remains “Reduce” with an average price target of $8; an insider also sold 36,827 shares worth about $259,000 under a pre-arranged trading plan.

MFN Partners Management LP purchased a new position in Bausch Health Cos Inc. (NYSE:BHC - Free Report) in the 2nd quarter, according to the company in its most recent 13F filing with the Securities and Exchange Commission (SEC). The fund purchased 6,000,000 shares of the company's stock, valued at approximately $29,580,000,000. Bausch Health Cos comprises 0.6% of MFN Partners Management LP's investment portfolio, making the stock its 6th biggest position. MFN Partners Management LP owned 1.60% of Bausch Health Cos as of its most recent filing with the Securities and Exchange Commission (SEC).

Other institutional investors also recently modified their holdings of the company. Caption Management LLC increased its holdings in Bausch Health Cos by 101.1% in the 4th quarter. Caption Management LLC now owns 4,464 shares of the company's stock worth $31,000 after buying an additional 405,789 shares in the last quarter. Caitong International Asset Management Co. Ltd lifted its stake in Bausch Health Cos by 12,589.7% during the 4th quarter. Caitong International Asset Management Co. Ltd now owns 4,949 shares of the company's stock valued at $34,000 after acquiring an additional 4,910 shares during the period. Northwestern Mutual Wealth Management Co. boosted its holdings in shares of Bausch Health Cos by 6,661.2% during the 3rd quarter. Northwestern Mutual Wealth Management Co. now owns 5,409 shares of the company's stock valued at $35,000 after acquiring an additional 5,329 shares during the last quarter. Tacita Capital Inc purchased a new stake in shares of Bausch Health Cos during the 2nd quarter valued at about $29,000. Finally, Russell Investments Group Ltd. grew its stake in shares of Bausch Health Cos by 65.9% in the second quarter. Russell Investments Group Ltd. now owns 7,819 shares of the company's stock worth $51,000 after acquiring an additional 3,106 shares during the period. 78.65% of the stock is owned by hedge funds and other institutional investors.

Insiders Place Their Bets

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

Key Bausch Health Cos News

Here are the key news stories impacting Bausch Health Cos this week:

• Positive Sentiment: Upgraded to Buy: BHC was raised to Zacks Rank #2 (Buy), reflecting improved expectations for the company’s earnings and potentially supporting further near-term gains. Bausch Upgraded to Buy
• Positive Sentiment: Higher earnings estimates: Zacks analysts raised forecasts across multiple periods, including FY2027 EPS to $3.84 from $3.59 and FY2028 EPS to $3.04 from $3.02. Estimates for several 2027 and 2028 quarters were also increased, reinforcing the view that earnings momentum could drive the stock higher. Rising Earnings Estimates
• Positive Sentiment: Bausch + Lomb growth thesis: An investment analysis highlighted 9% year-over-year revenue growth in the second quarter, margin expansion and strong operating cash flow. Growth in premium intraocular lenses and branded pharmaceuticals could improve product mix, EBITDA and cash generation while supporting deleveraging. Bausch Plus Lomb Analysis
• Neutral Sentiment: Despite the estimate increases, Zacks Research continues to rate BHC Strong Sell. The broader analyst consensus is “Reduce,” with an average price target of $8, indicating limited upside relative to current trading levels.
• Negative Sentiment: Insider Aimee Lenar sold 36,827 shares worth approximately $258,894 under a pre-arranged Rule 10b5-1 plan. Although the scheduled nature reduces its significance, the transaction cut her direct holding by 9.91%. Insider Share Sale

Analyst Upgrades and Downgrades

Several research analysts have recently weighed in on the stock. Zacks Research raised shares of Bausch Health Cos from a "strong sell" rating to a "hold" rating in a report on Thursday. Wall Street Zen raised shares of Bausch Health Cos from a "buy" rating to a "strong-buy" rating in a research report on Saturday, August 1st. Weiss Ratings upgraded shares of Bausch Health Cos from a "sell (d-)" rating to a "sell (d)" rating in a research note on Friday, July 31st. Royal Bank Of Canada lowered their price target 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. Six equities research analysts have rated the stock with a Hold rating and one has given a Sell rating to the stock. According to MarketBeat, Bausch Health Cos currently has a consensus rating of "Reduce" and an average target price of $8.00.

Bausch Health Cos Price Performance

NYSE BHC opened at $6.42 on Friday. The company has a 50-day moving average price of $5.36 and a 200-day moving average price of $5.46. Bausch Health Cos Inc. has a 52 week low of $4.33 and a 52 week high of $8.00. The company has a quick ratio of 1.08, a current ratio of 1.44 and a debt-to-equity ratio of 54.68. The firm has a market capitalization of $2.40 billion, a P/E ratio of -2.17 and a beta of 0.38.

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

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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