Medline Sees Unusually Large Options Volume (NASDAQ:MDLN)

Key Points

• Unusual options activity: Investors bought 15,355 call options on Monday — roughly a 423% increase versus the stock's average daily call volume — indicating heavy bullish options interest.
• Mixed quarterly results: Medline missed on EPS (reported ($0.01) vs. $0.24 expected) but beat revenue expectations as sales rose 14.8% to $7.79 billion, suggesting top-line strength despite the profit shortfall.
• Analyst stance: The consensus rating is a Moderate Buy with a $50.62 average price target, and notable actions include BMO raising its target to $54 while several firms have issued buy/outperform ratings.

Medline (NASDAQ:MDLN - Get Free Report) was the recipient of some unusual options trading on Monday. Stock investors purchased 15,355 call options on the stock. This represents an increase of approximately 423% compared to the average daily volume of 2,935 call options.

Medline Stock Down 0.1%

Medline stock traded down $0.04 during mid-day trading on Monday, hitting $42.69. The stock had a trading volume of 1,161,565 shares, compared to its average volume of 5,108,725. The firm's 50-day moving average is $44.85. Medline has a 12 month low of $34.89 and a 12 month high of $50.88.

Medline (NASDAQ:MDLN - Get Free Report) last announced its quarterly earnings data on Wednesday, February 25th. The company reported ($0.01) earnings per share for the quarter, missing the consensus estimate of $0.24 by ($0.25). The business had revenue of $7.79 billion during the quarter, compared to analysts' expectations of $7.52 billion. Medline's revenue was up 14.8% compared to the same quarter last year.

Wall Street Analyst Weigh In

Several analysts have recently commented on the company. BMO Capital Markets increased their target price on Medline from $45.00 to $54.00 and gave the stock an "outperform" rating in a report on Thursday, February 26th. BNP Paribas Exane initiated coverage on Medline in a report on Monday, January 12th. They issued a "neutral" rating and a $38.00 price target for the company. Wall Street Zen upgraded shares of Medline to a "hold" rating in a research report on Saturday, January 10th. Mizuho started coverage on shares of Medline in a research report on Monday, January 12th. They issued an "outperform" rating and a $48.00 price objective for the company. Finally, Weiss Ratings assumed coverage on shares of Medline in a research note on Monday, March 16th. They issued a "hold (c-)" rating for the company. Two investment analysts have rated the stock with a Strong Buy rating, twenty-one have given a Buy rating and six have issued a Hold rating to the company's stock. According to data from MarketBeat, the company presently has a consensus rating of "Moderate Buy" and a consensus price target of $50.62.

Institutional Trading of Medline

Hedge funds have recently modified their holdings of the company. Sound Income Strategies LLC bought a new position in Medline during the 4th quarter worth approximately $25,000. Entrust Financial LLC acquired a new stake in Medline in the fourth quarter worth $26,000. NBC Securities Inc. bought a new position in shares of Medline during the fourth quarter worth $28,000. Global Retirement Partners LLC acquired a new position in shares of Medline in the 4th quarter valued at $31,000. Finally, North Star Investment Management Corp. acquired a new position in shares of Medline in the 4th quarter valued at $36,000.

About Medline

Medline NASDAQ: MDLN is a healthcare products and services company that manufactures, sources and distributes a wide range of medical supplies and equipment for healthcare providers. Its product portfolio spans clinical consumables and personal protective equipment, surgical and procedural supplies, wound care and incontinence products, diagnostic and laboratory supplies, and select durable medical equipment. Medline supports care settings that include hospitals, health systems, long-term care facilities, ambulatory clinics and home health providers.

In addition to product manufacturing and distribution, Medline provides supply‑chain and logistics services designed to help healthcare customers manage inventory, reduce costs and streamline operations.

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