Investors Buy High Volume of Call Options on Bausch Health Cos (NYSE:BHC)

Key Points

• Unusual options activity: Investors purchased 6,018 Bausch Health call options, more than double the typical daily volume of 2,732, signaling increased speculative interest.
• Analyst sentiment remains mixed: RBC raised its price target to $10 while maintaining a “sector perform” rating, and the stock carries an average “Hold” rating with an $8.25 consensus target.
• Shares and earnings gained momentum: BHC rose to $8.89 on unusually heavy volume after quarterly EPS and revenue surpassed estimates, though negative profitability metrics and substantial leverage remain risks.

Bausch Health Cos Inc. (NYSE:BHC - Get Free Report) saw some unusual options trading activity on Thursday. Stock traders purchased 6,018 call options on the company. This represents an increase of 120% compared to the typical daily volume of 2,732 call options.

Analyst Upgrades and Downgrades

BHC has been the subject of several recent analyst reports. Royal Bank Of Canada upped their target price on shares of Bausch Health Cos from $9.00 to $10.00 and gave the company a "sector perform" rating in a research note on Thursday. Zacks Research upgraded Bausch Health Cos from a "hold" rating to a "strong-buy" rating in a report on Monday, September 21st. Wall Street Zen upgraded shares of Bausch Health Cos from a "buy" rating to a "strong-buy" rating in a report on Saturday, August 1st. Weiss Ratings upgraded Bausch Health Cos from a "sell (d-)" rating to a "sell (d)" rating in a research note on Friday, July 31st. Finally, Jefferies Financial Group reaffirmed a "hold" rating and issued a $8.00 target price on shares of Bausch Health Cos in a report on Thursday. One equities research analyst has rated the stock with a Strong Buy rating, five have issued a Hold rating and one has assigned a Sell rating to the company. Based on data from MarketBeat, Bausch Health Cos presently has an average rating of "Hold" and an average target price of $8.25.

Bausch Health Cos Price Performance

NYSE BHC traded up $1.97 on Thursday, reaching $8.89. The stock had a trading volume of 32,976,378 shares, compared to its average volume of 2,592,033. The firm has a fifty day moving average of $6.17 and a two-hundred day moving average of $5.71. The company has a market cap of $3.33 billion, a P/E ratio of -3.00 and a beta of 0.37. Bausch Health Cos has a 1-year low of $4.33 and a 1-year high of $9.04.

Bausch Health Cos (NYSE:BHC - Get Free Report) last released its quarterly earnings results on Wednesday, October 28th. The company reported $1.77 EPS for the quarter, topping analysts' consensus estimates of $1.25 by $0.52. The business had revenue of $2.90 billion for the quarter, compared to analyst estimates of $2.72 billion. Bausch Health Cos had a negative net margin of 10.12% and a negative return on equity of 561.95%. Research analysts predict that Bausch Health Cos will post 4.35 EPS for the current fiscal year.

Insider Activity at Bausch Health Cos

In other news, insider Aimee Lenar sold 36,827 shares of the stock in a transaction on Wednesday, August 19th. The stock was sold at an average price of $7.03, for a total value of $258,893.81. Following the transaction, the insider owned 334,853 shares of the company's stock, valued at $2,354,016.59. This represents a 9.91% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders own 20.67% of the company's stock.

Hedge Funds Weigh In On Bausch Health Cos

A number of institutional investors have recently added to or reduced their stakes in BHC. State of Wyoming boosted its position in Bausch Health Cos by 62.1% during the 3rd quarter. State of Wyoming now owns 79,031 shares of the company's stock worth $461,000 after buying an additional 30,273 shares during the period. Lebenthal Global Advisors LLC grew its stake in shares of Bausch Health Cos by 69.4% in the third quarter. Lebenthal Global Advisors LLC now owns 123,613 shares of the company's stock worth $721,000 after purchasing an additional 50,644 shares during the last quarter. Sanders Morris Harris LLC bought a new position in Bausch Health Cos during the 3rd quarter worth $169,000. Roxbury Financial LLC acquired a new position in Bausch Health Cos during the 3rd quarter worth about $28,000. Finally, Engineers Gate Manager LP increased its stake in shares of Bausch Health Cos by 149.6% in the second quarter. Engineers Gate Manager LP now owns 249,991 shares of the company's stock valued at $1,232,000 after buying an additional 149,820 shares during the period. 78.65% of the stock is currently owned by institutional investors and hedge funds.

Bausch Health Cos News Roundup

Here are the key news stories impacting Bausch Health Cos this week:

• Positive Sentiment: Strong Q3 results and raised outlook: Bausch Health reported third-quarter revenue of approximately $2.94 billion, up 10% year over year, while adjusted EPS of $1.77 exceeded estimates. Adjusted EBITDA rose 32% to $1.305 billion, with growth led in part by Salix and its Xifaxan franchise. Management raised full-year 2026 revenue, adjusted EBITDA, and adjusted operating cash-flow guidance. Bausch Health Announces Third Quarter 2026 Results, Raises Guidance
• Positive Sentiment: Continued operating momentum: Excluding Bausch + Lomb, the company delivered its 14th consecutive quarter of year-over-year revenue and adjusted EBITDA growth. It generated $581 million in operating cash flow and $539 million in adjusted cash flow from operations, supporting confidence in its deleveraging capacity. BHC Q3 Earnings Beat on Salix Growth
• Positive Sentiment: Debt and shareholder-support measures: Bausch Health plans to redeem about $643 million of 8.5% senior notes due 2027 using cash on hand, which should reduce expensive debt and future interest expense. The company also authorized a $50 million share-repurchase program, primarily to offset employee-equity dilution. Bausch Health Announces Full Redemption of Senior Notes
• Neutral Sentiment: Analyst view improved modestly: Royal Bank of Canada raised its price target from $9 to $10 while maintaining a “sector perform” rating, implying additional upside but not a bullish recommendation. Royal Bank of Canada recommendations
• Neutral Sentiment: Call-option activity was more than twice its typical level, signaling increased speculative interest but not necessarily confirming institutional conviction.
• Negative Sentiment: Despite the quarter’s improvement, Bausch Health continues to carry significant financial leverage and reported negative trailing net margin and return on equity, leaving execution and balance-sheet risks for investors.

Bausch Health Cos Company Profile

Bausch Health Companies Inc NYSE: BHC is a multinational specialty pharmaceutical company focused on developing, manufacturing and commercializing branded, generic and over-the-counter medicines. Its portfolio serves several therapeutic areas, including gastroenterology, dermatology, neurology, ophthalmology, hospital products and other specialty-care markets.

The company markets products through businesses such as Salix Pharmaceuticals, Ortho Dermatologics, Solta Medical and its international pharmaceutical operations.

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