Option Care Health (NASDAQ:OPCH) Lowered to "Hold" Rating by Stephens

Key Points

• Stephens downgraded Option Care Health from a “strong-buy” to a “hold,” adding to a mixed analyst picture after recent moves by other firms such as Bank of America, Truist, Morgan Stanley, Deutsche Bank, and UBS.
• The stock is trading near $21.74, well below its 200-day moving average of $27.50, while analysts still hold an average rating of Moderate Buy with a consensus target price of $30.08.
• Option Care Health recently beat EPS expectations with quarterly earnings of $0.40 per share, though revenue came in slightly below estimates at $1.35 billion; insiders also bought shares, including the CEO and a director.

Option Care Health (NASDAQ:OPCH - Get Free Report) was downgraded by Stephens from a "strong-buy" rating to a "hold" rating in a research note issued on Friday,Zacks.com reports.

A number of other brokerages have also recently issued reports on OPCH. Bank of America cut shares of Option Care Health from a "buy" rating to a "neutral" rating and set a $22.00 target price for the company. in a report on Friday, May 1st. Truist Financial set a $30.00 price target on Option Care Health in a report on Friday, May 1st. Morgan Stanley set a $28.00 price target on Option Care Health in a report on Wednesday, May 6th. Deutsche Bank Aktiengesellschaft reaffirmed a "buy" rating and issued a $26.00 price objective on shares of Option Care Health in a research note on Friday, May 1st. Finally, UBS Group reaffirmed a "buy" rating on shares of Option Care Health in a report on Tuesday, June 16th. Eight analysts have rated the stock with a Buy rating and six have assigned a Hold rating to the stock. According to data from MarketBeat, the stock currently has an average rating of "Moderate Buy" and a consensus target price of $30.08.

Option Care Health Price Performance

Shares of NASDAQ OPCH opened at $21.74 on Friday. 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 has a one year low of $18.01 and a one year high of $36.80. The firm has a market capitalization of $3.41 billion, a P/E ratio of 16.85, a PEG ratio of 1.23 and a beta of 0.65. The company's fifty day moving average is $21.15 and its two-hundred day moving average is $27.50.

Option Care Health (NASDAQ:OPCH - Get Free Report) last announced its quarterly earnings results on Thursday, April 30th. The company reported $0.40 earnings per share (EPS) 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 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 posted $0.40 EPS. The business's revenue 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. Analysts forecast that Option Care Health will post 1.64 EPS for the current fiscal year.

Insiders Place Their Bets

In other Option Care Health news, CEO John Charles Rademacher acquired 12,500 shares of the company's stock in a transaction dated Monday, May 4th. The stock was acquired at an average cost of $21.18 per share, with a total value of $264,750.00. Following the purchase, the chief executive officer directly owned 695,152 shares in the company, valued at approximately $14,723,319.36. This trade represents a 1.83% increase in their position. The acquisition was disclosed in a filing with the SEC, which is available through this link. Also, Director Timothy P. Sullivan bought 24,154 shares of Option Care Health stock in a transaction that occurred on Thursday, May 7th. The stock was bought at an average cost of $20.69 per share, for a total transaction of $499,746.26. Following the purchase, the director owned 73,383 shares in the company, valued at $1,518,294.27. This represents a 49.06% increase in their position. Additional details regarding this purchase are available in the official SEC disclosure. Over the last quarter, insiders acquired 73,264 shares of company stock worth $1,548,316. Insiders own 1.70% of the company's stock.

Hedge Funds Weigh In On Option Care Health

Hedge funds have recently bought and sold shares of the stock. V Square Quantitative Management LLC purchased a new stake in shares of Option Care Health in the fourth quarter valued at $25,000. Advisory Services Network LLC acquired a new stake in shares of Option Care Health during the third quarter valued at $35,000. McIlrath & Eck LLC purchased a new stake in Option Care Health during the 2nd quarter worth about $37,000. Caitong International Asset Management Co. Ltd purchased a new stake in Option Care Health during the 3rd quarter worth about $38,000. Finally, Quarry LP increased its position in Option Care Health by 502.7% during the 3rd quarter. Quarry LP now owns 1,549 shares of the company's stock worth $43,000 after purchasing an additional 1,292 shares in the last quarter. Hedge funds and other institutional investors own 98.05% of the company's stock.

About Option Care Health

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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