Option Care Health (NASDAQ:OPCH) Raised to "Hold" at Zacks Research

Key Points

• Zacks Research upgraded Option Care Health (NASDAQ: OPCH) from “strong sell” to “hold,” adding to a mixed analyst picture that now includes a consensus rating of “Moderate Buy” and a consensus price target of $30.54.
• The company’s latest earnings topped profit estimates, with Q1 EPS of $0.40 versus the $0.37 consensus, though revenue came in slightly below expectations at $1.35 billion.
• Insiders have been buying shares, including director purchases by Timothy P. Sullivan and Harry M. Jansen Kraemer, Jr., while institutional investors continue to hold the vast majority of the stock.

Option Care Health (NASDAQ:OPCH - Get Free Report) was upgraded by stock analysts at Zacks Research from a "strong sell" rating to a "hold" rating in a research report issued to clients and investors on Monday,Zacks.com reports.

OPCH has been the subject of several other reports. TD Cowen cut their price objective on shares of Option Care Health from $37.00 to $23.00 and set a "hold" rating for the company in a research report on Friday, May 1st. Weiss Ratings lowered shares of Option Care Health from a "hold (c)" rating to a "hold (c-)" rating in a report on Monday, May 11th. The Goldman Sachs Group began coverage on shares of Option Care Health in a research note on Monday, June 8th. They issued a "neutral" rating and a $22.00 price target for the company. Bank of America cut Option Care Health from a "buy" rating to a "neutral" rating and set a $22.00 target price for the company. in a research note on Friday, May 1st. Finally, Deutsche Bank Aktiengesellschaft reissued a "buy" rating and issued a $26.00 price target on shares of Option Care Health in a research note on Friday, May 1st. One equities research analyst has rated the stock with a Strong Buy rating, eight have given a Buy rating and five have given a Hold rating to the company. According to MarketBeat.com, the company has a consensus rating of "Moderate Buy" and a consensus target price of $30.54.

Option Care Health Stock Performance

Shares of Option Care Health stock opened at $21.57 on Monday. The business's 50 day moving average price is $21.39 and its 200 day moving average price is $28.06. The company has a market cap of $3.39 billion, a price-to-earnings ratio of 16.72, a PEG ratio of 1.19 and a beta of 0.65. 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.

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

Insider Transactions at Option Care Health

In related news, Director Timothy P. Sullivan purchased 24,154 shares of Option Care Health stock in a transaction that occurred 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 transaction, the director directly owned 73,383 shares in the company, valued at approximately $1,518,294.27. The trade was a 49.06% increase in their ownership of the stock. The acquisition was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, Director Harry M. Jansen Kraemer, Jr. acquired 36,610 shares of the firm's stock in a transaction on Monday, May 4th. The stock was bought at an average price of $21.41 per share, with a total value of $783,820.10. Following the purchase, the director directly owned 450,000 shares of the company's stock, valued at $9,634,500. This represents a 8.86% increase in their ownership of the stock. The SEC filing for this purchase provides additional information. In the last quarter, insiders purchased 73,264 shares of company stock worth $1,548,316. 1.70% of the stock is currently owned by insiders.

Institutional Trading of Option Care Health

Institutional investors and hedge funds have recently made changes to their positions in the company. Durable Capital Partners LP grew its stake in 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 worth $267,557,000 after buying an additional 4,720,988 shares during the last quarter. Fuller & Thaler Asset Management Inc. lifted its stake in Option Care Health by 12.1% in the fourth quarter. Fuller & Thaler Asset Management Inc. now owns 6,958,800 shares of the company's stock valued at $221,707,000 after buying an additional 752,058 shares during the last quarter. Arrowstreet Capital Limited Partnership boosted its holdings in shares of Option Care Health by 6.2% in the fourth quarter. Arrowstreet Capital Limited Partnership now owns 4,248,425 shares of the company's stock valued at $135,355,000 after acquiring an additional 247,118 shares during the period. Dimensional Fund Advisors LP boosted its holdings in shares of Option Care Health by 0.9% in the first quarter. Dimensional Fund Advisors LP now owns 3,876,856 shares of the company's stock valued at $104,368,000 after acquiring an additional 36,208 shares during the period. Finally, Southpoint Capital Advisors LP grew its position in shares of Option Care Health by 20.0% during the first quarter. Southpoint Capital Advisors LP now owns 3,600,000 shares of the company's stock worth $96,912,000 after acquiring an additional 600,000 shares during the last quarter. 98.05% of the stock is owned by hedge funds and other 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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