Option Care Health (NASDAQ:OPCH) Trading 5.6% Higher - Should You Buy?

Key Points

• Option Care Health shares rose 5.6% in mid-day trading, reaching as high as $20.64 after closing at $19.69, though volume was below average.
• Recent analyst actions were mixed: several firms cut price targets, but the stock still carries a “Moderate Buy” consensus with an average price target of $31.25.
• The company beat quarterly EPS expectations at $0.40 versus $0.37, and insider buying has been notable, with both the CEO and a director recently purchasing shares.

Option Care Health, Inc. (NASDAQ:OPCH - Get Free Report) shares traded up 5.6% during mid-day trading on Tuesday . The company traded as high as $20.64 and last traded at $20.79. 1,794,971 shares traded hands during trading, a decline of 26% from the average session volume of 2,428,171 shares. The stock had previously closed at $19.69.

Analyst Upgrades and Downgrades

A number of equities analysts have recently issued reports on the company. Truist Financial set a $30.00 price objective on Option Care Health in a research report on Friday, May 1st. Morgan Stanley set a $28.00 price objective on Option Care Health in a research report on Wednesday, May 6th. TD Cowen lowered their price objective on 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. Wall Street Zen downgraded Option Care Health from a "buy" rating to a "hold" rating in a report on Saturday, February 28th. Finally, JPMorgan Chase & Co. lowered their target price on Option Care Health from $40.00 to $33.00 and set an "overweight" rating for the company in a report on Monday, May 4th. One analyst has rated the stock with a Strong Buy rating, eight have assigned a Buy rating, three have assigned a Hold rating and one has issued a Sell rating to the company. Based on data from MarketBeat, Option Care Health currently has a consensus rating of "Moderate Buy" and an average price target of $31.25.

Option Care Health Stock Performance

The stock has a market cap of $3.26 billion, a P/E ratio of 16.10, a P/E/G ratio of 1.09 and a beta of 0.68. The company has a fifty day moving average price of $26.62 and a 200 day moving average price of $30.20. The company has a debt-to-equity ratio of 0.85, a current ratio of 1.64 and a quick ratio of 1.07.

Option Care Health (NASDAQ:OPCH - Get Free Report) last released its quarterly earnings data on Thursday, April 30th. The company reported $0.40 EPS for the quarter, beating the consensus estimate of $0.37 by $0.03. The firm 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 quarterly revenue was up 1.3% on a year-over-year basis. During the same quarter in the previous year, the company posted $0.40 earnings per share. Option Care Health has set its FY 2026 guidance at 1.820-1.920 EPS. On average, equities analysts expect that Option Care Health, Inc. will post 1.64 EPS for the current year.

Insiders Place Their Bets

In other Option Care Health news, Director Timothy P. Sullivan acquired 24,154 shares of the business's stock in a transaction on Thursday, May 7th. The shares were acquired at an average price of $20.69 per share, with a total value of $499,746.26. Following the completion of the transaction, 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 ownership of the stock. The acquisition was disclosed in a document filed with the SEC, which is accessible through this link. Also, CEO John Charles Rademacher acquired 12,500 shares of the business's stock in a transaction on Monday, May 4th. The stock was acquired at an average cost of $21.18 per share, for a total transaction of $264,750.00. Following the transaction, 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 position. Additional details regarding this purchase are available in the official SEC disclosure. Over the last quarter, insiders have acquired 73,264 shares of company stock valued at $1,548,316. Insiders own 1.70% of the company's stock.

Hedge Funds Weigh In On Option Care Health

Institutional investors have recently added to or reduced their stakes in the business. V Square Quantitative Management LLC bought a new position in Option Care Health in the 4th quarter worth about $25,000. Cornerstone Planning Group LLC boosted its holdings in shares of Option Care Health by 7,621.4% in the 3rd quarter. Cornerstone Planning Group LLC now owns 1,081 shares of the company's stock worth $30,000 after purchasing an additional 1,067 shares in the last quarter. Advisory Services Network LLC purchased a new position in shares of Option Care Health in the 3rd quarter worth about $35,000. McIlrath & Eck LLC purchased a new position in shares of Option Care Health in the 2nd quarter worth about $37,000. Finally, Caitong International Asset Management Co. Ltd purchased a new stake in Option Care Health during the 3rd quarter valued at about $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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