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 downgraded shares of Owens & Minor (NYSE:OMI - Free Report) from a hold rating to a strong sell rating in a research note released on Tuesday,Zacks.com reports.

OMI has been the subject of a number of other reports. UBS Group set a $7.00 price objective on shares of Owens & Minor in a research note on Wednesday, August 13th. JPMorgan Chase & Co. reduced their price target on shares of Owens & Minor from $7.00 to $6.00 and set an "underweight" rating for the company in a research note on Wednesday, August 27th. Robert W. Baird reduced their price target on shares of Owens & Minor from $10.00 to $7.00 and set an "outperform" rating for the company in a research note on Tuesday, August 12th. Bank of America reduced their price target on shares of Owens & Minor from $7.50 to $4.75 and set an "underperform" rating for the company in a research note on Tuesday, August 12th. Finally, Baird R W upgraded shares of Owens & Minor from a "hold" rating to a "strong-buy" rating in a research report on Friday, August 8th. One investment analyst has rated the stock with a Strong Buy rating, three have given a Buy rating, one has assigned a Hold rating and three have issued a Sell rating to the company. According to data from MarketBeat.com, Owens & Minor currently has a consensus rating of "Hold" and a consensus price target of $7.63.

Owens & Minor Stock Down 4.7%

NYSE OMI traded down $0.27 during trading hours on Tuesday, reaching $5.36. 3,298,555 shares of the company's stock traded hands, compared to its average volume of 1,544,586. 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 $413.62 million, a PE ratio of -0.34 and a beta of 1.03. The firm has a 50-day simple moving average of $6.84 and a 200 day simple moving average of $7.46. The company has a debt-to-equity ratio of 3.32, a current ratio of 0.86 and a quick ratio of 0.83.

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

Insiders Place Their Bets

In related news, major shareholder Coliseum Capital Management, L purchased 720,000 shares of the business's stock in a transaction dated Tuesday, August 12th. The shares were purchased at an average cost of $5.15 per share, for a total transaction of $3,708,000.00. Following the completion of the acquisition, the insider owned 12,282,955 shares in the company, valued at approximately $63,257,218.25. This trade represents a 6.23% increase in their position. The purchase was disclosed in a legal filing with the SEC, which is available at the SEC website. Insiders have acquired a total of 1,537,852 shares of company stock worth $8,099,544 in the last quarter. Insiders own 3.69% of the company's stock.

Institutional Trading of Owens & Minor

Several hedge funds have recently modified their holdings of the company. Coliseum Capital Management LLC lifted its position in shares of Owens & Minor by 122.0% during the first quarter. Coliseum Capital Management LLC now owns 10,624,599 shares of the company's stock valued at $95,940,000 after buying an additional 5,838,635 shares during the last quarter. Vanguard Group Inc. lifted its position in shares of Owens & Minor by 2.7% during the first quarter. Vanguard Group Inc. now owns 9,156,759 shares of the company's stock valued at $82,686,000 after buying an additional 241,003 shares during the last quarter. Charles Schwab Investment Management Inc. raised its position in shares of Owens & Minor by 19.4% in the 1st quarter. Charles Schwab Investment Management Inc. now owns 2,752,960 shares of the company's stock valued at $24,859,000 after purchasing an additional 447,917 shares during the last quarter. Paradigm Capital Management Inc. NY increased its holdings in Owens & Minor by 3,197.8% in the 2nd quarter. Paradigm Capital Management Inc. NY now owns 1,978,700 shares of the company's stock worth $18,006,000 after buying an additional 1,918,700 shares during the period. Finally, Invesco Ltd. grew its stake in shares of Owens & Minor by 10.0% during the 2nd quarter. Invesco Ltd. now owns 1,888,548 shares of the company's stock worth $17,186,000 after purchasing an additional 171,653 shares during the period. 98.04% of the stock is owned by hedge funds and other institutional investors.

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.