Bausch Health Cos (NYSE:BHC) Shares Up 6.5% - Time to Buy?

Key Points

• Bausch Health shares rose 6.5% to about $6.27, although trading volume was roughly 95% below the average session level.
• Analyst sentiment remains mixed: the stock has an overall “Hold” rating and an $8.00 consensus price target, with ratings ranging from Strong Buy to Sell.
• The company exceeded quarterly expectations, reporting $1.26 in earnings per share versus a $0.96 estimate and revenue of $2.83 billion versus $2.59 billion expected, but it continues to report negative margins and return on equity.

Shares of Bausch Health Cos Inc. (NYSE:BHC - Get Free Report) rose 6.5% during trading on Thursday. The company traded as high as $6.16 and last traded at $6.2710. Approximately 112,927 shares traded hands during mid-day trading, a decline of 95% from the average session volume of 2,478,126 shares. The stock had previously closed at $5.89.

Analysts Set New Price Targets

BHC has been the topic of several recent research reports. Royal Bank Of Canada reissued a "sector perform" rating and set a $9.00 price objective on shares of Bausch Health Cos in a report on Thursday, October 8th. Jefferies Financial Group upgraded Bausch Health Cos to a "hold" rating in a research note on Wednesday, July 22nd. Wall Street Zen raised Bausch Health Cos from a "buy" rating to a "strong-buy" rating in a research report on Saturday, August 1st. Weiss Ratings raised Bausch Health Cos from a "sell (d-)" rating to a "sell (d)" rating in a research report on Friday, July 31st. Finally, Zacks Research upgraded shares of Bausch Health Cos from a "hold" rating to a "strong-buy" rating in a research note on Monday, September 21st. One analyst has rated the stock with a Strong Buy rating, five have given a Hold rating and one has issued a Sell rating to the company. According to MarketBeat, the company currently has an average rating of "Hold" and a consensus price target of $8.00.

Bausch Health Cos Stock Up 7.0%

The company has a market capitalization of $2.36 billion, a P/E ratio of -2.13 and a beta of 0.37. The stock has a fifty day simple moving average of $6.16 and a 200-day simple moving average of $5.58.

Bausch Health Cos (NYSE:BHC - Get Free Report) last posted its earnings results on Wednesday, July 29th. The company reported $1.26 earnings per share for the quarter, topping the consensus estimate of $0.96 by $0.30. The business had revenue of $2.83 billion for the quarter, compared to analyst estimates of $2.59 billion. Bausch Health Cos had a negative net margin of 10.12% and a negative return on equity of 561.95%. Analysts predict that Bausch Health Cos Inc. will post 4.35 earnings per share for the current fiscal year.

Insider Activity

In other news, insider Aimee Lenar sold 36,827 shares of the business's stock in a transaction that occurred 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 directly owned 334,853 shares of the company's stock, valued at $2,354,016.59. The trade was a 9.91% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Company insiders own 20.67% of the company's stock.

Institutional Inflows and Outflows

Institutional investors have recently made changes to their positions in the business. Paulson & CO. Inc. bought a new position in shares of Bausch Health Cos in the 2nd quarter worth $361,151,000. Royal Bank of Canada lifted its stake in Bausch Health Cos by 24.9% in the first quarter. Royal Bank of Canada now owns 11,363,498 shares of the company's stock valued at $61,362,000 after buying an additional 2,262,894 shares during the period. MFN Partners Management LP acquired a new position in shares of Bausch Health Cos during the 2nd quarter worth about $29,580,000. Dimensional Fund Advisors LP raised its position in shares of Bausch Health Cos by 10.8% in the 1st quarter. Dimensional Fund Advisors LP now owns 3,604,818 shares of the company's stock valued at $19,456,000 after acquiring an additional 350,823 shares during the period. Finally, Renaissance Technologies LLC raised its position in shares of Bausch Health Cos by 10.0% in the 1st quarter. Renaissance Technologies LLC now owns 1,575,772 shares of the company's stock valued at $8,509,000 after acquiring an additional 143,581 shares during the period. 78.65% of the stock is owned by institutional investors.

About Bausch Health Cos

Bausch Health Companies Inc is a multinational specialty pharmaceutical company headquartered in Laval, Quebec. The company develops, manufactures and markets prescription medicines, branded and generic pharmaceuticals, over-the-counter products and medical devices across a range of therapeutic areas.

Its business includes Salix Pharmaceuticals, which focuses on gastrointestinal treatments; Ortho Dermatologics, which develops prescription therapies for dermatological conditions; and Solta Medical, which provides energy-based medical and aesthetic devices.

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