Option Care Health, Inc. (NASDAQ:OPCH) Given Average Rating of "Moderate Buy" by Analysts

Key Points

• Analysts remain moderately bullish on Option Care Health, with 13 brokerages giving it an average rating of “Moderate Buy” and a consensus 12-month price target of $31.25, well above the recent share price near $20.46.
• The company beat earnings estimates for the latest quarter, reporting $0.40 EPS versus the $0.37 consensus, though revenue of $1.35 billion came in slightly below expectations.
• Insiders have been buying shares, including two directors who made sizable purchases in May, while institutional investors continue to hold the vast majority of the stock.

Shares of Option Care Health, Inc. (NASDAQ:OPCH - Get Free Report) have been given an average rating of "Moderate Buy" by the thirteen brokerages that are presently covering the firm, Marketbeat.com reports. One analyst has rated the stock with a sell rating, three have assigned a hold rating, eight have assigned a buy rating and one has given a strong buy rating to the company. The average 12-month price objective among analysts that have updated their coverage on the stock in the last year is $31.25.

A number of equities analysts recently weighed in on OPCH shares. Truist Financial set a $30.00 target price on shares of Option Care Health in a research note on Friday, May 1st. Zacks Research downgraded shares of Option Care Health from a "hold" rating to a "strong sell" rating in a research note on Monday, May 11th. TD Cowen decreased their price target on shares of Option Care Health from $37.00 to $23.00 and set a "hold" rating for the company in a research note on Friday, May 1st. Weiss Ratings downgraded shares of Option Care Health from a "hold (c)" rating to a "hold (c-)" rating in a research note on Monday, May 11th. Finally, Wall Street Zen downgraded shares of Option Care Health from a "buy" rating to a "hold" rating in a research note on Saturday, February 28th.

Option Care Health Price Performance

Shares of NASDAQ OPCH opened at $20.46 on Tuesday. Option Care Health has a twelve month low of $18.01 and a twelve month high of $36.80. The firm has a fifty day simple moving average of $24.96 and a 200 day simple moving average of $29.77. The company has a market capitalization of $3.21 billion, a PE ratio of 15.86, a P/E/G ratio of 1.16 and a beta of 0.67. The company has a quick ratio of 1.07, a current ratio of 1.64 and a debt-to-equity ratio of 0.85.

Option Care Health (NASDAQ:OPCH - Get Free Report) last announced its earnings results on Thursday, April 30th. The company reported $0.40 earnings per share for the quarter, topping analysts' consensus estimates 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 business had revenue of $1.35 billion during the quarter, compared to the consensus estimate of $1.39 billion. During the same quarter last year, the firm earned $0.40 earnings per share. Option Care Health'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, sell-side analysts forecast that Option Care Health will post 1.64 EPS for the current year.

Insider Buying and Selling at Option Care Health

In related news, Director Timothy P. Sullivan purchased 24,154 shares of the firm's stock in a transaction on Thursday, May 7th. The stock was purchased at an average cost of $20.69 per share, with a total value of $499,746.26. Following the completion of the purchase, the director owned 73,383 shares in the company, valued at approximately $1,518,294.27. This trade represents a 49.06% increase in their position. The acquisition was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. Also, Director Harry M. Jansen Kraemer, Jr. purchased 36,610 shares of the firm's stock in a transaction on Monday, May 4th. The stock was bought at an average cost of $21.41 per share, with a total value of $783,820.10. Following the completion of the purchase, the director owned 450,000 shares of the company's stock, valued at approximately $9,634,500. This represents a 8.86% increase in their position. The disclosure for this purchase is available in the SEC filing. Over the last ninety days, insiders purchased 73,264 shares of company stock valued at $1,548,316. Corporate insiders own 1.70% of the company's stock.

Institutional Inflows and Outflows

A number of hedge funds have recently made changes to their positions in OPCH. Durable Capital Partners LP grew its holdings in shares of Option Care Health by 134.2% during the second 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. Southpoint Capital Advisors LP acquired a new position in shares of Option Care Health during the fourth quarter valued at about $95,580,000. Sumitomo Mitsui Trust Group Inc. acquired a new position in shares of Option Care Health during the first quarter valued at about $70,287,000. Norges Bank acquired a new position in shares of Option Care Health during the fourth quarter valued at about $61,787,000. Finally, Van Berkom & Associates Inc. acquired a new position in shares of Option Care Health during the first quarter valued at about $42,739,000. 98.05% of the stock is currently owned by institutional investors and hedge funds.

Option Care Health Company 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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