Option Care Health (NASDAQ:OPCH) Shares Gap Up on Earnings Beat

Key Points

• Option Care Health shares jumped 6.2%, opening at $23.93 after the company reported quarterly EPS of $0.45, exceeding expectations by $0.02. Revenue reached $1.44 billion, above the $1.42 billion consensus and up 1.9% year over year.
• The company issued fiscal 2026 EPS guidance of $1.85–$1.92. Analysts maintain a “Moderate Buy” consensus rating with an average price target of $30.08.
• Insider buying totaled 73,264 shares worth approximately $1.55 million over the past 90 days, while institutional investors own 98.05% of the stock.

Option Care Health, Inc. (NASDAQ:OPCH - Get Free Report)'s share price gapped up before the market opened on Wednesday after the company announced better than expected quarterly earnings. The stock had previously closed at $22.48, but opened at $23.93. Option Care Health shares last traded at $23.8160, with a volume of 1,179,320 shares.

The company reported $0.45 EPS for the quarter, beating analysts' consensus estimates of $0.43 by $0.02. The company had revenue of $1.44 billion during the quarter, compared to the consensus estimate of $1.42 billion. Option Care Health had a return on equity of 18.17% and a net margin of 3.64%.The company's quarterly revenue was up 1.9% compared to the same quarter last year. During the same quarter in the prior year, the firm earned $0.41 EPS. Option Care Health has set its FY 2026 guidance at 1.850-1.920 EPS.

Analyst Upgrades and Downgrades

OPCH has been the subject of several research analyst reports. UBS Group restated a "buy" rating on shares of Option Care Health in a research report on Tuesday, June 16th. Morgan Stanley set a $28.00 target price on Option Care Health in a research report on Wednesday, May 6th. TD Cowen lowered their price target on Option Care Health from $37.00 to $23.00 and set a "hold" rating on the stock in a report on Friday, May 1st. Zacks Research raised Option Care Health from a "strong sell" rating to a "hold" rating in a research note on Monday, July 6th. Finally, Stephens restated an "equal weight" rating and set a $24.00 price objective (down from $30.00) on shares of Option Care Health in a research report on Friday, July 17th. Eight equities research analysts have rated the stock with a Buy rating, five have given a Hold rating and one has issued a Sell rating to the company's stock. According to MarketBeat, the company has an average rating of "Moderate Buy" and a consensus target price of $30.08.

Insider Activity at Option Care Health

In other Option Care Health news, Director Harry M. Jansen Kraemer, Jr. acquired 36,610 shares of the firm's stock in a transaction that occurred on Monday, May 4th. The stock was purchased at an average cost of $21.41 per share, for a total transaction of $783,820.10. Following the completion of the acquisition, the director owned 450,000 shares of the company's stock, valued at approximately $9,634,500. This trade represents a 8.86% increase in their position. The transaction was disclosed in a document filed with the SEC, which can be accessed through the SEC website. Also, Director Timothy P. Sullivan bought 24,154 shares of the stock in a transaction on Thursday, May 7th. The shares were acquired at an average cost of $20.69 per share, for a total transaction of $499,746.26. Following the completion of the transaction, the director directly owned 73,383 shares of the company's stock, valued at approximately $1,518,294.27. The trade was a 49.06% increase in their ownership of the stock. Additional details regarding this purchase are available in the official SEC disclosure. In the last 90 days, insiders acquired 73,264 shares of company stock valued at $1,548,316. Insiders own 1.70% of the company's stock.

Institutional Inflows and Outflows

A number of institutional investors have recently made changes to their positions in the stock. Royal Bank of Canada grew its holdings in Option Care Health by 20.7% during the first quarter. Royal Bank of Canada now owns 231,161 shares of the company's stock valued at $8,078,000 after purchasing an additional 39,661 shares during the last quarter. AQR Capital Management LLC boosted its holdings in shares of Option Care Health by 162.6% during the 1st quarter. AQR Capital Management LLC now owns 41,633 shares of the company's stock worth $1,450,000 after buying an additional 25,777 shares during the period. Empowered Funds LLC bought a new stake in shares of Option Care Health during the 1st quarter worth $208,000. Invesco Ltd. grew its stake in Option Care Health by 2.7% in the 2nd quarter. Invesco Ltd. now owns 294,363 shares of the company's stock valued at $9,561,000 after buying an additional 7,678 shares during the last quarter. Finally, EverSource Wealth Advisors LLC grew its stake in Option Care Health by 528.1% in the 2nd quarter. EverSource Wealth Advisors LLC now owns 1,407 shares of the company's stock valued at $46,000 after buying an additional 1,183 shares during the last quarter. 98.05% of the stock is owned by institutional investors.

Option Care Health Stock Up 6.2%

The stock has a market cap of $3.75 billion, a P/E ratio of 18.49, a P/E/G ratio of 1.21 and a beta of 0.65. The company has a current ratio of 1.64, a quick ratio of 1.07 and a debt-to-equity ratio of 0.85. The firm's fifty day moving average is $21.39 and its 200 day moving average is $26.94.

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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