Omada Health (NASDAQ:OMDA) Trading Down 5% - What's Next?

Key Points

• Omada Health shares fell about 5.9% to roughly $22.14, with trading volume significantly below average. The stock has a $1.34 billion market capitalization and trades at a very high price-to-earnings ratio of 438.90.
• Analyst sentiment remains favorable, with 11 Buy ratings, two Holds and one Sell, producing a consensus “Moderate Buy” rating and a $26.50 price target. Recent firms raised targets as high as $35.
• Omada exceeded quarterly expectations, reporting $0.08 in earnings per share versus a projected loss of $0.02 and revenue of $87.83 million against an $80.93 million estimate. However, insiders sold 255,834 shares worth approximately $5.4 million over the past three months.

Shares of Omada Health, Inc. (NASDAQ:OMDA - Get Free Report) were down 5% on Thursday . The stock traded as low as $21.80 and last traded at $22.1370. Approximately 106,820 shares traded hands during mid-day trading, a decline of 91% from the average daily volume of 1,244,260 shares. The stock had previously closed at $23.31.

Analyst Ratings Changes

OMDA has been the topic of a number of recent research reports. Weiss Ratings upgraded Omada Health from a "sell (e+)" rating to a "sell (d+)" rating in a research report on Tuesday, August 11th. Canaccord Genuity Group upped their price target on Omada Health from $24.00 to $28.00 and gave the company a "buy" rating in a research note on Tuesday, July 21st. Morgan Stanley reiterated an "overweight" rating and issued a $30.00 price target on shares of Omada Health in a report on Monday, June 22nd. BTIG Research lifted their price objective on Omada Health from $30.00 to $35.00 and gave the stock a "buy" rating in a research report on Monday, August 10th. Finally, Needham & Company LLC reissued a "buy" rating and set a $28.00 price objective on shares of Omada Health in a report on Friday, May 8th. Eleven analysts have rated the stock with a Buy rating, two have issued a Hold rating and one has issued a Sell rating to the company's stock. Based on data from MarketBeat, the stock currently has a consensus rating of "Moderate Buy" and a consensus price target of $26.50.

Omada Health Trading Down 5.9%

The business's fifty day simple moving average is $22.59 and its 200 day simple moving average is $17.46. The stock has a market cap of $1.34 billion, a price-to-earnings ratio of 438.90 and a beta of 1.86.

Omada Health (NASDAQ:OMDA - Get Free Report) last posted its quarterly earnings results on Thursday, August 6th. The company reported $0.08 earnings per share for the quarter, beating analysts' consensus estimates of ($0.02) by $0.10. Omada Health had a return on equity of 2.60% and a net margin of 1.39%.The company had revenue of $87.83 million for the quarter, compared to the consensus estimate of $80.93 million. As a group, research analysts anticipate that Omada Health, Inc. will post 0.09 earnings per share for the current year.

Insider Activity

In other news, CEO Sean P. Duffy sold 25,886 shares of the business's stock in a transaction dated Wednesday, July 1st. The stock was sold at an average price of $22.68, for a total transaction of $587,094.48. Following the completion of the transaction, the chief executive officer directly owned 411,861 shares in the company, valued at approximately $9,341,007.48. The trade was a 5.91% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through this hyperlink. Also, CFO Steven L. Cook sold 33,000 shares of the stock in a transaction that occurred on Friday, June 26th. The shares were sold at an average price of $19.89, for a total transaction of $656,370.00. Following the completion of the sale, the chief financial officer owned 133,359 shares in the company, valued at $2,652,510.51. This represents a 19.84% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders sold 255,834 shares of company stock worth $5,398,196 in the last three months. Insiders own 6.38% of the company's stock.

Institutional Investors Weigh In On Omada Health

Several hedge funds have recently bought and sold shares of the company. AlpInvest Partners B.V. bought a new stake in shares of Omada Health in the 2nd quarter valued at $1,182,000. Walleye Capital LLC acquired a new stake in Omada Health during the 2nd quarter worth $11,648,000. a16z Perennial Management L.P. bought a new position in Omada Health during the fourth quarter worth about $2,480,000. GSA Capital Partners LLP acquired a new position in Omada Health in the second quarter valued at about $1,289,000. Finally, Madryn Asset Management LP acquired a new position in Omada Health in the fourth quarter valued at about $9,212,000.

About Omada Health

Omada Health is a digital health company that specializes in the prevention and management of chronic conditions through personalized, technology-driven programs. The company's platform combines data analytics, behavioral science and human coaching to support individuals at risk for or living with conditions such as prediabetes, type 2 diabetes, hypertension and musculoskeletal disorders. Participants access the program via a mobile app or web portal, where they receive tailored curriculum, feedback on health metrics and ongoing virtual coaching.

In addition to its core disease-management offerings, Omada Health has expanded its services to include mental health support and digital therapeutics for weight management.

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