Option Care Health Sees Unusually High Options Volume (NASDAQ:OPCH)

Key Points

• Option Care Health saw a 1,757% surge in call-option activity, with investors purchasing 5,219 calls versus an average daily volume of 281.
• McKesson and CD&R agreed to acquire the company for $32.05 per share in cash, valuing it at roughly $5.8 billion and representing a 37% premium to the unaffected share price.
• OPCH shares jumped $7.63 to $31.00 on heavy volume, though the discount to the offer price indicates investors may be pricing in deal-completion risk; an investor investigation also adds uncertainty.

Option Care Health, Inc. (NASDAQ:OPCH - Get Free Report) saw unusually large options trading activity on Tuesday. Stock investors acquired 5,219 call options on the company. This is an increase of 1,757% compared to the average daily volume of 281 call options.

Key Option Care Health News

Here are the key news stories impacting Option Care Health this week:

• Positive Sentiment: McKesson and CD&R agreed to acquire Option Care Health for $32.05 per share, implying an enterprise value of approximately $5.8 billion and a premium of about 37% to the prior closing price. The all-cash transaction provides a clear takeover valuation and is the primary reason for the stock’s move higher. CD&R and McKesson Corporation Sign Agreement to Acquire Option Care Health
• Positive Sentiment: Reports that acquisition discussions had reached an advanced stage, followed by the definitive agreement, triggered substantial investor interest and temporarily halted OPCH trading pending news. Option Care Health’s Shares Soar as Acquisition Talks Advance
• Neutral Sentiment: The deal remains subject to customary closing conditions and approvals. The stock’s trading level below the $32.05 offer price suggests investors may be accounting for transaction-completion risk.
• Neutral Sentiment: A Zacks article reviews whether OPCH is undervalued using value, growth, momentum and earnings-estimate trends, but the available report excerpt does not provide a definitive rating or new company-specific catalyst. Is Option Care Health Stock Undervalued Right Now?
• Negative Sentiment: Brodsky & Smith announced an investor investigation involving Option Care Health. The notice provides few details, but such investigations can introduce legal and reputational uncertainty around the transaction. Brodsky & Smith Shareholder Update

Wall Street Analyst Weigh In

OPCH has been the topic of several recent research reports. Weiss Ratings upgraded shares of Option Care Health from a "sell (d+)" rating to a "hold (c-)" rating in a research report on Friday, September 11th. Citigroup restated a "market outperform" rating on shares of Option Care Health in a report on Tuesday. The Goldman Sachs Group assumed coverage on shares of Option Care Health in a research note on Monday, June 8th. They set a "neutral" rating and a $22.00 target price for the company. Zacks Research raised shares of Option Care Health from a "strong sell" rating to a "hold" rating in a research note on Monday, July 6th. Finally, Stephens reiterated an "equal weight" rating and set a $24.00 price objective (down from $30.00) on shares of Option Care Health in a report on Friday, July 17th. Seven analysts have rated the stock with a Buy rating and seven have issued a Hold rating to the stock. Based on data from MarketBeat, the company presently has an average rating of "Moderate Buy" and a consensus target price of $29.92.

Institutional Trading of Option Care Health

Several institutional investors and hedge funds have recently made changes to their positions in the business. Central Pacific Bank Trust Division increased its holdings in Option Care Health by 3.9% during the 3rd quarter. Central Pacific Bank Trust Division now owns 14,369 shares of the company's stock worth $323,000 after purchasing an additional 540 shares in the last quarter. Engineers Gate Manager LP lifted its holdings in shares of Option Care Health by 263.0% in the second quarter. Engineers Gate Manager LP now owns 43,560 shares of the company's stock valued at $913,000 after purchasing an additional 31,561 shares in the last quarter. Squarepoint Ops LLC boosted its position in shares of Option Care Health by 234.1% during the second quarter. Squarepoint Ops LLC now owns 434,408 shares of the company's stock worth $9,110,000 after buying an additional 304,376 shares during the period. Empirical Finance LLC acquired a new position in shares of Option Care Health during the second quarter worth about $595,000. Finally, Nykredit A S bought a new position in shares of Option Care Health during the second quarter worth about $56,000. Institutional investors own 98.05% of the company's stock.

Option Care Health Price Performance

OPCH stock traded up $7.63 during trading on Tuesday, hitting $31.00. The company had a trading volume of 31,246,278 shares, compared to its average volume of 2,577,820. The company has a fifty day moving average price of $23.61 and a two-hundred day moving average price of $23.54. Option Care Health has a fifty-two week low of $18.01 and a fifty-two week high of $36.80. The company has a market cap of $4.64 billion, a P/E ratio of 23.31, a P/E/G ratio of 1.30 and a beta of 0.58. The company has a current ratio of 1.47, a quick ratio of 0.98 and a debt-to-equity ratio of 0.91.

Option Care Health (NASDAQ:OPCH - Get Free Report) last posted its earnings results on Wednesday, July 29th. The company reported $0.45 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $0.43 by $0.02. Option Care Health had a net margin of 3.68% and a return on equity of 18.74%. The company had revenue of $1.44 billion during the quarter, compared to analysts' expectations of $1.42 billion. During the same quarter in the previous year, the company posted $0.41 earnings per share. Option Care Health's quarterly revenue was up 1.9% compared to the same quarter last year. Option Care Health has set its FY 2026 guidance at 1.850-1.920 EPS. Equities research analysts expect that Option Care Health will post 1.7 earnings per share for the current fiscal year.

About Option Care Health

Option Care Health, Inc NASDAQ: OPCH is a provider of home and alternate-site infusion services in the United States. The company works with patients, physicians, hospitals, health plans and pharmaceutical manufacturers to deliver and manage infusion therapy outside traditional hospital settings, including in patients' homes, ambulatory infusion suites and other community-based locations.

Its services include the provision and administration of specialty medications and other infusion therapies for conditions such as infections, immune disorders, chronic diseases and nutritional deficiencies.

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