Bausch + Lomb (NYSE:BLCO) Sets New 1-Year High - Should You Buy?

Key Points

• Bausch + Lomb shares reached a new 52-week high, trading as high as $21.40, above the previous close of $20.96.
• The company beat quarterly earnings expectations, reporting EPS of $0.34 versus $0.21 expected; revenue rose 7.3% year over year to $1.38 billion.
• Analyst views remain mixed: the consensus rating is “Hold” with a $20.83 price target, while one company executive sold 112,015 shares.

Shares of Bausch + Lomb Corporation (NYSE:BLCO - Get Free Report) hit a new 52-week high during trading on Tuesday. The stock traded as high as $21.40 and last traded at $21.35, with a volume of 1,483,148 shares trading hands. The stock had previously closed at $20.96.

Analyst Ratings Changes

A number of equities research analysts recently weighed in on the company. Weiss Ratings raised Bausch + Lomb from a "sell (e+)" rating to a "sell (d-)" rating in a report on Friday, August 21st. Citigroup raised their price objective on shares of Bausch + Lomb from $21.00 to $23.00 and gave the company a "buy" rating in a research note on Thursday, October 29th. UBS Group started coverage on Bausch + Lomb in a research note on Thursday, July 30th. They issued a "buy" rating and a $21.00 price target for the company. JPMorgan Chase & Co. raised their price objective on Bausch + Lomb from $16.00 to $22.00 and gave the stock a "neutral" rating in a research note on Thursday, October 29th. Finally, Zacks Research raised shares of Bausch + Lomb from a "hold" rating to a "strong-buy" rating in a research note on Friday, October 30th. Two investment analysts have rated the stock with a Strong Buy rating, four have issued a Buy rating, eight have given a Hold rating and one has given a Sell rating to the company. According to MarketBeat.com, the company currently has an average rating of "Hold" and a consensus target price of $20.83.

Bausch + Lomb Price Performance

The stock has a market cap of $7.63 billion, a price-to-earnings ratio of -68.87, a price-to-earnings-growth ratio of 0.54 and a beta of 0.52. The company has a 50-day simple moving average of $17.72 and a two-hundred day simple moving average of $16.77. The company has a debt-to-equity ratio of 0.78, a quick ratio of 1.04 and a current ratio of 1.56.

Bausch + Lomb (NYSE:BLCO - Get Free Report) last announced its quarterly earnings results on Wednesday, October 28th. The company reported $0.34 EPS for the quarter, beating analysts' consensus estimates of $0.21 by $0.13. Bausch + Lomb had a negative net margin of 2.05% and a positive return on equity of 5.01%. The firm had revenue of $1.38 billion during the quarter, compared to analysts' expectations of $1.37 billion. During the same quarter last year, the company posted $0.18 earnings per share. The company's revenue for the quarter was up 7.3% compared to the same quarter last year. As a group, equities research analysts forecast that Bausch + Lomb Corporation will post 0.94 EPS for the current year.

Insider Activity at Bausch + Lomb

In other Bausch + Lomb news, CAO Frederick Munsch sold 112,015 shares of the company's stock in a transaction on Thursday, October 29th. The shares were sold at an average price of $20.48, for a total value of $2,294,067.20. Following the transaction, the chief accounting officer directly owned 45,831 shares in the company, valued at $938,618.88. The trade was a 70.96% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at this hyperlink. 1.45% of the stock is currently owned by corporate insiders.

Institutional Trading of Bausch + Lomb

Several hedge funds have recently added to or reduced their stakes in the company. Roxbury Financial LLC bought a new stake in Bausch + Lomb in the 3rd quarter valued at about $33,000. Royal Bank of Canada increased its position in Bausch + Lomb by 67.1% during the 1st quarter. Royal Bank of Canada now owns 3,657 shares of the company's stock worth $58,000 after purchasing an additional 1,468 shares in the last quarter. State of Wyoming lifted its stake in shares of Bausch + Lomb by 6.9% in the 3rd quarter. State of Wyoming now owns 13,772 shares of the company's stock valued at $234,000 after acquiring an additional 887 shares during the last quarter. R Squared Ltd raised its position in Bausch + Lomb by 46.0% in the third quarter. R Squared Ltd now owns 17,452 shares of the company's stock valued at $297,000 after purchasing an additional 5,502 shares during the last quarter. Finally, Handelsbanken Fonder AB boosted its position in Bausch + Lomb by 5.3% during the 2nd quarter. Handelsbanken Fonder AB now owns 22,000 shares of the company's stock worth $364,000 after buying an additional 1,100 shares during the period. 11.07% of the stock is owned by institutional investors and hedge funds.

Bausch + Lomb Company Profile

Bausch + Lomb Corporation is an eye-health company that develops, manufactures and markets products for consumers, eye-care professionals and surgical teams. Its business spans vision care, pharmaceuticals and surgical devices. Its products include contact lenses and lens-care solutions, as well as eye-health medicines and nutritional supplements. The company also supplies equipment, technologies and related products used in eye surgery and other ophthalmic procedures. Founded in Rochester, New York, in 1853 by John Jacob Bausch and Henry Lomb, the company serves customers in more than 100 countries.

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