Bank of America Has Lowered Expectations for Owens & Minor (NYSE:OMI) Stock Price

Key Points

• Bank of America lowered its price target for Owens & Minor from $7.50 to $4.75, maintaining an "underperform" rating on the stock.
• Despite the downgrade, analysts have differing opinions, with several others setting higher price targets, indicating a consensus target price of $9.29.
• Owens & Minor reported a Q2 EPS of $0.26, which fell short of expectations, leading to a continued decline in its stock performance.

Owens & Minor (NYSE:OMI - Get Free Report) had its price target reduced by investment analysts at Bank of America from $7.50 to $4.75 in a research note issued to investors on Tuesday,Benzinga reports. The brokerage presently has an "underperform" rating on the stock. Bank of America's target price would indicate a potential downside of 16.08% from the stock's current price.

A number of other equities analysts have also recently weighed in on OMI. Robert W. Baird reduced 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. UBS Group restated a "buy" rating and set a $7.00 price objective (down from $13.00) on shares of Owens & Minor in a research report on Monday, August 11th. Citigroup restated a "buy" rating and set a $7.00 price objective (down from $11.00) on shares of Owens & Minor in a research report on Tuesday. JPMorgan Chase & Co. set a $10.00 price objective on shares of Owens & Minor in a research report on Monday, August 11th. 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. Two analysts have rated the stock with a sell rating, two have issued a hold rating, three have given a buy rating and one has given a strong buy rating to the company. According to MarketBeat.com, the stock presently has a consensus rating of "Hold" and an average price target of $8.29.

Owens & Minor Stock Performance

Shares of OMI stock traded up $0.26 during trading hours on Tuesday, hitting $5.66. The company's stock had a trading volume of 2,877,316 shares, compared to its average volume of 1,682,434. The company has a current ratio of 0.86, a quick ratio of 0.41 and a debt-to-equity ratio of 3.32. The company has a 50 day moving average of $7.62 and a 200 day moving average of $7.89. Owens & Minor has a 12-month low of $4.56 and a 12-month high of $16.63. The stock has a market cap of $437.18 million, a PE ratio of -0.36, a price-to-earnings-growth ratio of 0.38 and a beta of 1.04.

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

Insider Activity at Owens & Minor

In other Owens & Minor news, major shareholder Coliseum Capital Management, L acquired 720,000 shares of the stock in a transaction dated Tuesday, August 12th. The stock was acquired at an average price of $5.15 per share, with a total value of $3,708,000.00. Following the completion of the purchase, the insider owned 12,282,955 shares in the company, valued at $63,257,218.25. This trade represents a 6.23% increase in their position. The purchase was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this link. Insiders have purchased a total of 1,537,852 shares of company stock valued at $8,099,544 over the last ninety days. Company insiders own 3.69% of the company's stock.

Institutional Inflows and Outflows

A number of institutional investors have recently added to or reduced their stakes in OMI. Sterling Capital Management LLC lifted its stake in Owens & Minor by 758.3% in the fourth quarter. Sterling Capital Management LLC now owns 2,060 shares of the company's stock worth $27,000 after acquiring an additional 1,820 shares during the last quarter. DekaBank Deutsche Girozentrale lifted its stake in Owens & Minor by 76.6% in the second quarter. DekaBank Deutsche Girozentrale now owns 3,126 shares of the company's stock worth $28,000 after acquiring an additional 1,356 shares during the last quarter. Versant Capital Management Inc lifted its stake in Owens & Minor by 537.6% in the first quarter. Versant Capital Management Inc now owns 3,201 shares of the company's stock worth $29,000 after acquiring an additional 2,699 shares during the last quarter. Parallel Advisors LLC raised its holdings in Owens & Minor by 1,387.0% during the first 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. Finally, Quarry LP acquired a new stake in Owens & Minor during the first quarter worth approximately $34,000. Hedge funds and other institutional investors own 98.04% of the company's stock.

About Owens & Minor

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.