Owens & Minor (NYSE:OMI) Rating Lowered to Strong Sell at Zacks Research

Key Points

• Owens & Minor was downgraded from a "hold" to a "strong sell" rating by Zacks Research, signaling significant concerns among analysts regarding the company's performance.
• Multiple analysts have decreased their price targets for the stock, with Bank of America slashing its target from $7.50 to $4.75, underscoring a bearish outlook on the company's future.
• Despite a 3.3% year-over-year revenue increase to $681.90 million, the company reported earnings per share (EPS) of $0.26, falling short of the consensus estimate and indicating ongoing financial challenges.

Zacks Research lowered shares of Owens & Minor (NYSE:OMI - Free Report) from a hold rating to a strong sell rating in a research report released on Tuesday, September 2nd,Zacks.com reports.

OMI has been the subject of a number of other research reports. UBS Group set a $7.00 target price on shares of Owens & Minor in a research report on Wednesday, August 13th. Citigroup reissued a "buy" rating and set a $7.00 price objective (down previously from $11.00) on shares of Owens & Minor in a research report on Tuesday, August 12th. Baird R W raised shares of Owens & Minor from a "hold" rating to a "strong-buy" rating in a research report on Friday, August 8th. JPMorgan Chase & Co. cut their price objective on shares of Owens & Minor from $7.00 to $6.00 and set an "underweight" rating for the company in a research report on Wednesday, August 27th. Finally, Robert W. Baird cut their price objective on shares of Owens & Minor from $10.00 to $7.00 and set an "outperform" rating for the company in a research report on Tuesday, August 12th. One equities research analyst has rated the stock with a Strong Buy rating, three have given a Buy rating, one has issued a Hold rating and three have given a Sell rating to the stock. Based on data from MarketBeat, the stock currently has a consensus rating of "Hold" and an average target price of $7.63.

Owens & Minor Stock Performance

NYSE:OMI traded down $0.07 during trading hours on Tuesday, reaching $5.31. The company had a trading volume of 673,581 shares, compared to its average volume of 1,539,082. The company has a current ratio of 0.86, a quick ratio of 0.83 and a debt-to-equity ratio of 3.32. Owens & Minor has a 52 week low of $4.56 and a 52 week high of $16.47. The firm has a market cap of $410.14 million, a price-to-earnings ratio of -0.34 and a beta of 1.03. The firm's 50 day moving average price is $6.76 and its 200-day moving average price is $7.45.

Owens & Minor (NYSE:OMI - Get Free Report) last posted its earnings results on Monday, August 11th. The company reported $0.26 EPS for the quarter, missing analysts' consensus estimates of $0.27 by ($0.01). Owens & Minor had a positive return on equity of 26.59% and a negative net margin of 13.78%.The company had revenue of $681.90 million during the quarter, compared to the consensus estimate of $2.73 billion. During the same period last year, the firm posted $0.36 EPS. The company's revenue for the quarter was up 3.3% on a year-over-year basis. Owens & Minor has set its FY 2025 guidance at 1.020-1.070 EPS. On average, analysts forecast that Owens & Minor will post 1.51 EPS for the current year.

Insiders Place Their Bets

In other news, major shareholder Coliseum Capital Management, L bought 720,000 shares of the company's stock in a transaction that occurred on Tuesday, August 12th. The stock was bought at an average price of $5.15 per share, with a total value of $3,708,000.00. Following the acquisition, the insider owned 12,282,955 shares of the company's stock, valued at approximately $63,257,218.25. This represents a 6.23% increase in their position. The acquisition was disclosed in a filing with the Securities & Exchange Commission, which is available through this link. Over the last ninety days, insiders have acquired 1,537,852 shares of company stock valued at $8,099,544. Corporate insiders own 3.69% of the company's stock.

Institutional Inflows and Outflows

Hedge funds have recently bought and sold shares of the company. DekaBank Deutsche Girozentrale boosted its holdings in Owens & Minor by 76.6% in the 2nd quarter. DekaBank Deutsche Girozentrale now owns 3,126 shares of the company's stock worth $28,000 after buying an additional 1,356 shares during the period. Versant Capital Management Inc lifted its stake in Owens & Minor by 537.6% in the 1st quarter. Versant Capital Management Inc now owns 3,201 shares of the company's stock worth $29,000 after purchasing an additional 2,699 shares in the last quarter. Parallel Advisors LLC lifted its stake in Owens & Minor by 1,387.0% in the 1st quarter. Parallel Advisors LLC now owns 3,316 shares of the company's stock worth $30,000 after purchasing an additional 3,093 shares in the last quarter. Quarry LP purchased a new stake in Owens & Minor in the 1st quarter worth $34,000. Finally, Headlands Technologies LLC purchased a new stake in Owens & Minor in the 1st quarter worth $55,000. Institutional investors own 98.04% of the company's stock.

Owens & Minor Company Profile

Owens & Minor, Inc is a healthcare solutions company, which engages in the product manufacturing and delivery, home health supply, and perioperative services to support care through the hospital and into the home. It operates through the Products and Healthcare Services, and Patient Direct segments.