Southpoint Capital Advisors LP Purchases 600,000 Shares of Option Care Health, Inc. $OPCH

Key Points

• Southpoint Capital Advisors increased its Option Care Health stake by 20%, purchasing 600,000 shares to reach 3.6 million shares, valued at approximately $96.9 million and representing 2.29% of OPCH.
• Institutional ownership remains very high at 98.05%, while several other funds—including Durable Capital Partners, Norges Bank and Van Berkom & Associates—also increased or initiated positions.
• Analyst sentiment is mixed but leans positive: OPCH carries a “Moderate Buy” consensus rating with an average price target of $30.08, despite recent target reductions and the stock trading near $21.81.

Southpoint Capital Advisors LP boosted its position in Option Care Health, Inc. (NASDAQ:OPCH - Free Report) by 20.0% in the first quarter, according to its most recent disclosure with the Securities and Exchange Commission (SEC). The fund owned 3,600,000 shares of the company's stock after buying an additional 600,000 shares during the quarter. Option Care Health makes up about 2.0% of Southpoint Capital Advisors LP's holdings, making the stock its 23rd largest position. Southpoint Capital Advisors LP owned about 2.29% of Option Care Health worth $96,912,000 at the end of the most recent reporting period.

A number of other institutional investors have also recently made changes to their positions in OPCH. Durable Capital Partners LP lifted its position in shares of Option Care Health by 134.2% during the 2nd quarter. Durable Capital Partners LP now owns 8,237,577 shares of the company's stock valued at $267,557,000 after buying an additional 4,720,988 shares during the last quarter. Sumitomo Mitsui Trust Group Inc. bought a new stake in Option Care Health in the 1st quarter valued at about $70,287,000. Norges Bank bought a new stake in Option Care Health in the 4th quarter valued at about $61,787,000. Van Berkom & Associates Inc. purchased a new stake in Option Care Health during the first quarter valued at about $42,739,000. Finally, Alyeska Investment Group L.P. purchased a new stake in Option Care Health during the fourth quarter valued at about $38,559,000. Hedge funds and other institutional investors own 98.05% of the company's stock.

Analyst Ratings Changes

OPCH has been the topic of several research reports. The Goldman Sachs Group began coverage on shares of Option Care Health in a research report on Monday, June 8th. They issued a "neutral" rating and a $22.00 price target on the stock. Weiss Ratings lowered shares of Option Care Health from a "hold (c-)" rating to a "sell (d+)" rating in a research note on Thursday. TD Cowen lowered their target price on shares of Option Care Health from $37.00 to $23.00 and set a "hold" rating on the stock in a report on Friday, May 1st. JPMorgan Chase & Co. cut their price target on Option Care Health from $40.00 to $33.00 and set an "overweight" rating for the company in a report on Monday, May 4th. Finally, Truist Financial set a $30.00 price objective on Option Care Health in a research note on Friday, May 1st. Eight analysts have rated the stock with a Buy rating, five have given a Hold rating and one has given a Sell rating to the stock. According to data from MarketBeat.com, the stock currently has an average rating of "Moderate Buy" and an average price target of $30.08.

Option Care Health Price Performance

OPCH stock opened at $21.81 on Tuesday. The company has a debt-to-equity ratio of 0.85, a current ratio of 1.64 and a quick ratio of 1.07. Option Care Health, Inc. has a one year low of $18.01 and a one year high of $36.80. The stock has a market cap of $3.42 billion, a PE ratio of 16.91, a P/E/G ratio of 1.20 and a beta of 0.65. The firm has a 50 day simple moving average of $21.36 and a two-hundred day simple moving average of $27.01.

Option Care Health (NASDAQ:OPCH - Get Free Report) last posted its quarterly earnings data on Thursday, April 30th. The company reported $0.40 earnings per share for the quarter, beating the consensus estimate of $0.37 by $0.03. Option Care Health had a net margin of 3.64% and a return on equity of 18.17%. The firm had revenue of $1.35 billion for the quarter, compared to analysts' expectations of $1.39 billion. During the same quarter last year, the company posted $0.40 EPS. The business's quarterly revenue was up 1.3% on a year-over-year basis. Option Care Health has set its FY 2026 guidance at 1.820-1.920 EPS. On average, analysts predict that Option Care Health, Inc. will post 1.64 EPS for the current fiscal year.

Insider Buying and Selling

In other news, Director Harry M. Jansen Kraemer, Jr. bought 36,610 shares of Option Care Health stock in a transaction that occurred on Monday, May 4th. The shares were acquired at an average price of $21.41 per share, with a total value of $783,820.10. Following the completion of the purchase, the director directly owned 450,000 shares in the company, valued at $9,634,500. The trade was a 8.86% increase in their ownership of the stock. The purchase was disclosed in a filing with the SEC, which is available through this hyperlink. Also, CEO John Charles Rademacher purchased 12,500 shares of the stock in a transaction on Monday, May 4th. The shares were purchased at an average price of $21.18 per share, for a total transaction of $264,750.00. Following the transaction, the chief executive officer directly owned 695,152 shares of the company's stock, valued at approximately $14,723,319.36. This represents a 1.83% increase in their ownership of the stock. The disclosure for this purchase is available in the SEC filing. Over the last ninety days, insiders purchased 73,264 shares of company stock worth $1,548,316. Corporate insiders own 1.70% of the company's stock.

Option Care Health Profile

Option Care Health NASDAQ: OPCH is a leading provider of home and alternate site infusion services in the United States. The company specializes in the administration of injectable therapies, including antibiotics, nutrition, hydration, immunoglobulin, pain management and specialty pharmaceuticals. Through its nationwide network of infusion pharmacies and nursing professionals, Option Care Health delivers customized care plans and in-home nursing visits to patients managing complex or chronic conditions outside of a hospital setting.

Option Care Health traces its current structure to the completion of its merger with BioScrip in early 2021, combining two of the industry's most experienced home infusion businesses.

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