Omada Health (NASDAQ:OMDA) Trading Down 7.1% - Here's What Happened

Key Points

• Omada Health shares fell 7.1% to about $19.97 in mid-day trading, with volume down 83% from the average session.
• Analyst sentiment remains broadly positive: 11 analysts rate the stock a Buy, with a consensus “Moderate Buy” rating and an average price target of $26.67.
• The company exceeded quarterly expectations, reporting $0.08 in EPS versus a projected loss of $0.02 and revenue of $87.83 million versus estimates of $80.93 million; however, insiders have sold $5.7 million of stock over the past three months.

Shares of Omada Health, Inc. (NASDAQ:OMDA - Get Free Report) were down 7.1% during mid-day trading on Friday . The stock traded as low as $19.31 and last traded at $19.9740. 209,893 shares changed hands during trading, a decline of 83% from the average session volume of 1,242,573 shares. The stock had previously closed at $21.50.

Analyst Upgrades and Downgrades

Several analysts have recently weighed in on OMDA shares. Citizens Jmp raised their price objective on shares of Omada Health from $27.00 to $32.00 and gave the stock a "market outperform" rating in a report on Friday, August 14th. Wall Street Zen upgraded Omada Health from a "hold" rating to a "buy" rating in a research report on Saturday, August 8th. Robert W. Baird raised their price target on Omada Health from $15.00 to $25.00 and gave the company a "neutral" rating in a report on Wednesday, August 12th. BMO Capital Markets reiterated an "outperform" rating and issued a $24.00 price objective on shares of Omada Health in a research report on Friday, August 7th. Finally, Needham & Company LLC reissued a "buy" rating and issued a $28.00 price objective on shares of Omada Health in a research note on Friday. Eleven analysts have rated the stock with a Buy rating, two have issued a Hold rating and one has assigned a Sell rating to the company. According to data from MarketBeat, the company currently has a consensus rating of "Moderate Buy" and a consensus price target of $26.67.

Omada Health Trading Down 8.8%

The stock has a market cap of $1.20 billion, a price-to-earnings ratio of 392.30 and a beta of 1.86. The firm has a fifty day simple moving average of $22.68 and a 200-day simple moving average of $17.91.

Omada Health (NASDAQ:OMDA - Get Free Report) last released its earnings results on Thursday, August 6th. The company reported $0.08 EPS for the quarter, beating the consensus estimate 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 during the quarter, compared to analysts' expectations of $80.93 million. On average, equities analysts predict that Omada Health, Inc. will post 0.09 earnings per share for the current fiscal year.

Insider Transactions at Omada Health

In other news, CFO Steven L. Cook sold 1,108 shares of Omada Health stock in a transaction that occurred on Thursday, August 27th. The shares were sold at an average price of $25.00, for a total transaction of $27,700.00. Following the completion of the sale, the chief financial officer owned 187,209 shares in the company, valued at $4,680,225. The trade was a 0.59% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available through this link. Also, President Wei-Li Shao sold 8,866 shares of the business's stock in a transaction that occurred on Wednesday, August 12th. The stock was sold at an average price of $25.02, for a total transaction of $221,827.32. Following the sale, the president directly owned 307,372 shares of the company's stock, valued at approximately $7,690,447.44. This trade represents a 2.80% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold 265,923 shares of company stock valued at $5,708,519 in the last three months. Company insiders own 6.38% of the company's stock.

Hedge Funds Weigh In On Omada Health

Hedge funds and other institutional investors have recently bought and sold shares of the business. WINTON GROUP Ltd bought a new stake in shares of Omada Health during the 2nd quarter valued at $1,101,000. Integrated Wealth Concepts LLC bought a new position in shares of Omada Health in the 2nd quarter worth $53,000. Squarepoint Ops LLC acquired a new stake in shares of Omada Health during the second quarter worth $2,044,000. Corient Private Wealth LP grew its stake in shares of Omada Health by 252.5% during the second quarter. Corient Private Wealth LP now owns 145,118 shares of the company's stock worth $3,185,000 after purchasing an additional 103,955 shares during the period. Finally, California State Teachers Retirement System increased its holdings in Omada Health by 465.1% in the second quarter. California State Teachers Retirement System now owns 10,229 shares of the company's stock valued at $225,000 after purchasing an additional 8,419 shares during the last quarter.

Omada Health Company Profile

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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