Option Care Health (NASDAQ:OPCH) Earns Overweight Rating from Morgan Stanley

Key Points

• Morgan Stanley reissued an "Overweight" rating on Option Care Health (NASDAQ:OPCH) with a $485.00 price objective.
• Analyst views are mixed but skew positive: MarketBeat shows an average rating of "Moderate Buy" with an average price target of $69.33 (1 Strong Buy, 8 Buy, 3 Hold among analysts).
• Option Care reported Q results with EPS of $0.40 (beat) and revenue up 1.3% YoY but slightly below estimates; the stock traded near $20.84 and insiders including the CEO and a director made notable purchases, increasing their ownership.

Option Care Health (NASDAQ:OPCH - Get Free Report)'s stock had its "overweight" rating reissued by equities research analysts at Morgan Stanley in a research note issued to investors on Wednesday,Benzinga reports. They currently have a $485.00 price objective on the stock.

Several other analysts have also recently issued reports on the stock. UBS Group decreased their target price on shares of Option Care Health from $45.00 to $39.00 and set a "buy" rating on the stock in a research report on Friday, May 1st. TD Cowen reduced their price objective on Option Care Health from $37.00 to $23.00 and set a "hold" rating on the stock in a research note on Friday, May 1st. Citigroup reaffirmed an "outperform" rating on shares of Option Care Health in a research note on Tuesday, January 13th. Stephens set a $30.00 target price on Option Care Health in a report on Friday, May 1st. Finally, National Bank Financial set a $37.00 target price on Option Care Health in a research report on Tuesday, January 27th. One investment analyst has rated the stock with a Strong Buy rating, eight have assigned a Buy rating and three have issued a Hold rating to the company's stock. According to MarketBeat.com, Option Care Health currently has an average rating of "Moderate Buy" and an average price target of $69.33.

Option Care Health Price Performance

NASDAQ:OPCH traded down $0.47 during trading hours on Wednesday, reaching $20.84. The stock had a trading volume of 2,853,888 shares, compared to its average volume of 2,197,329. The stock has a market capitalization of $3.27 billion, a PE ratio of 16.15, a PEG ratio of 1.21 and a beta of 0.68. Option Care Health has a 52 week low of $18.01 and a 52 week high of $36.80. The company has a 50 day moving average price of $28.86 and a two-hundred day moving average price of $30.70. The company has a debt-to-equity ratio of 0.85, a quick ratio of 1.07 and a current ratio of 1.64.

Option Care Health (NASDAQ:OPCH - Get Free Report) last posted its earnings results on Thursday, April 30th. The company reported $0.40 earnings per share for the quarter, beating 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 firm had revenue of $1.35 billion during the quarter, compared to analyst estimates of $1.39 billion. During the same period last year, the firm posted $0.40 earnings per share. Option Care Health's revenue for the quarter was up 1.3% compared to the same quarter last year. Option Care Health has set its FY 2026 guidance at 1.820-1.920 EPS. As a group, sell-side analysts anticipate that Option Care Health will post 1.69 earnings per share for the current fiscal year.

Insider Buying and Selling

In other Option Care Health news, CEO John Charles Rademacher purchased 12,500 shares of the firm's stock in a transaction that occurred on Monday, May 4th. The stock was purchased at an average cost of $21.18 per share, with a total value of $264,750.00. Following the purchase, the chief executive officer owned 695,152 shares of the company's stock, valued at approximately $14,723,319.36. The trade was a 1.83% increase in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at this hyperlink. Also, Director Harry M. Jansen Kraemer, Jr. acquired 36,610 shares of the company's 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 acquisition, the director owned 450,000 shares in the company, valued at $9,634,500. This trade represents a 8.86% increase in their ownership of the stock. The disclosure for this purchase is available in the SEC filing. Corporate insiders own 1.70% of the company's stock.

Institutional Trading of Option Care Health

Institutional investors and hedge funds have recently made changes to their positions in the business. V Square Quantitative Management LLC bought a new stake in Option Care Health during the 4th quarter valued at about $25,000. Cornerstone Planning Group LLC raised its stake in shares of Option Care Health by 7,621.4% during the third quarter. Cornerstone Planning Group LLC now owns 1,081 shares of the company's stock valued at $30,000 after acquiring an additional 1,067 shares in the last quarter. Advisory Services Network LLC purchased a new stake in shares of Option Care Health in the third quarter valued at approximately $35,000. McIlrath & Eck LLC purchased a new stake in shares of Option Care Health in the second quarter valued at approximately $37,000. Finally, Caitong International Asset Management Co. Ltd bought a new position in Option Care Health in the third quarter worth approximately $38,000. 98.05% of the stock is currently owned by institutional investors.

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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