Traders Buy Large Volume of Bausch Health Cos Call Options (NYSE:BHC)

Key Points

• Bausch Health’s second-quarter results beat expectations: Adjusted EPS reached $1.26 versus the $0.96 consensus, while revenue rose to about $2.83 billion. Management also raised its 2026 revenue, EBITDA and cash-flow guidance.
• Options activity indicated increased bullish interest. Traders bought 4,021 call options, roughly 134% above the typical daily volume, and BHC shares rose to $5.97 in heavy trading.
• Significant risks and analyst caution remain. The company carries substantial leverage, has a negative net margin, and analysts maintain a consensus “Reduce” rating with an $8 price target; Zacks downgraded the stock to “strong sell.”

Bausch Health Cos Inc. (NYSE:BHC - Get Free Report) was the recipient of some unusual options trading on Thursday. Stock investors purchased 4,021 call options on the stock. This represents an increase of approximately 134% compared to the typical daily volume of 1,722 call options.

Trending Headlines about Bausch Health Cos

Here are the key news stories impacting Bausch Health Cos this week:

• Positive Sentiment: Second-quarter results beat expectations. Bausch Health reported adjusted earnings of $1.26 per share, versus the $0.96 analyst consensus, while revenue reached approximately $2.83 billion to $2.85 billion, above estimates near $2.59 billion. Adjusted EPS rose 40% year over year from $0.90, and adjusted EBITDA increased 28% to $1.075 billion. Bausch Health Q2 earnings and revenues beat estimates
• Positive Sentiment: Growth and cash flow supported the bullish reaction. Consolidated revenue increased 13% on a reported basis and 11% organically, marking the company’s thirteenth consecutive quarter of year-over-year revenue growth. Bausch Health also generated $517 million in operating cash flow and $471 million in adjusted cash flow from operations. Bausch Health announces second-quarter 2026 results and raises guidance
• Positive Sentiment: Full-year guidance was raised. Management now expects 2026 revenue of $10.8 billion to $11.0 billion, above the roughly $10.7 billion consensus estimate, and also raised its adjusted EBITDA and adjusted cash-flow guidance. Guidance update
• Positive Sentiment: Options activity signaled increased bullish interest. Traders purchased 4,021 BHC call options, 134% above the average volume of 1,722 contracts, potentially adding momentum to the stock.
• Negative Sentiment: Analysts at Zacks expect weaker earnings. The cautious earnings outlook could limit the rally if future results or guidance fail to sustain the latest beat. Zacks expects weaker earnings
• Negative Sentiment: Financial risks remain material. Bausch Health continues to report a negative net margin and carries substantial leverage, which may keep investors focused on debt reduction and the durability of its cash flow.

Wall Street Analyst Weigh In

BHC has been the subject of several analyst reports. Jefferies Financial Group upgraded Bausch Health Cos to a "hold" rating in a research note on Wednesday, July 22nd. Royal Bank Of Canada lowered their price objective on shares of Bausch Health Cos from $10.00 to $9.00 and set a "sector perform" rating on the stock in a research report on Monday, April 27th. Zacks Research downgraded shares of Bausch Health Cos from a "hold" rating to a "strong sell" rating in a research report on Friday, July 24th. Finally, Weiss Ratings cut shares of Bausch Health Cos from a "sell (d)" rating to a "sell (d-)" rating in a research note on Monday, May 4th. Five analysts have rated the stock with a Hold rating and two have assigned a Sell rating to the company's stock. According to data from MarketBeat.com, Bausch Health Cos currently has a consensus rating of "Reduce" and a consensus price target of $8.00.

Bausch Health Cos Stock Performance

NYSE BHC traded up $1.29 on Thursday, hitting $5.97. 13,090,327 shares of the company's stock were exchanged, compared to its average volume of 2,186,907. The firm has a market cap of $2.23 billion, a price-to-earnings ratio of -1.84 and a beta of 0.42. The firm's 50-day moving average price is $4.95 and its two-hundred day moving average price is $5.47. Bausch Health Cos has a fifty-two week low of $4.33 and a fifty-two week high of $8.69. The company has a debt-to-equity ratio of 54.68, a current ratio of 1.32 and a quick ratio of 0.97.

Bausch Health Cos (NYSE:BHC - Get Free Report) last posted its quarterly earnings results on Wednesday, July 29th. The company reported $1.26 earnings per share for the quarter, beating analysts' consensus estimates of $0.96 by $0.30. Bausch Health Cos had a negative return on equity of 2,922.77% and a negative net margin of 11.47%.The firm had revenue of $2.83 billion for the quarter, compared to the consensus estimate of $2.59 billion. On average, research analysts expect that Bausch Health Cos will post 4.05 EPS for the current year.

Insider Buying and Selling

In other Bausch Health Cos news, Director Frank D. Lee sold 24,456 shares of the company's stock in a transaction that occurred on Tuesday, May 19th. The stock was sold at an average price of $5.43, for a total transaction of $132,796.08. Following the completion of the sale, the director directly owned 49,339 shares of the company's stock, valued at $267,910.77. This represents a 33.14% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. 20.67% of the stock is currently owned by corporate insiders.

Hedge Funds Weigh In On Bausch Health Cos

Institutional investors and hedge funds have recently made changes to their positions in the stock. Amundi lifted its stake in shares of Bausch Health Cos by 61.7% in the first quarter. Amundi now owns 23,983 shares of the company's stock valued at $130,000 after purchasing an additional 9,148 shares during the period. Royal Bank of Canada grew its position in Bausch Health Cos by 24.9% during the first quarter. Royal Bank of Canada now owns 11,363,498 shares of the company's stock worth $61,362,000 after buying an additional 2,262,894 shares during the period. Whitebox Advisors LLC increased its holdings in Bausch Health Cos by 3.7% in the first quarter. Whitebox Advisors LLC now owns 564,672 shares of the company's stock valued at $3,049,000 after buying an additional 20,175 shares in the last quarter. Lazard Asset Management LLC increased its holdings in Bausch Health Cos by 15.5% in the first quarter. Lazard Asset Management LLC now owns 53,139 shares of the company's stock valued at $287,000 after buying an additional 7,114 shares in the last quarter. Finally, Renaissance Technologies LLC lifted its position in shares of Bausch Health Cos by 10.0% during 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 and hedge funds.

About Bausch Health Cos

Bausch Health Cos Inc, formerly known as Valeant Pharmaceuticals International, is a global specialty pharmaceutical company headquartered in Laval, Quebec, Canada. The company operates through two primary segments: Ophthalmology, led by its Bausch + Lomb franchise, and Diversified Brands, which encompasses prescription dermatology, gastrointestinal, neurology and branded pharmaceutical products. Bausch Health develops, manufactures and markets a range of therapeutic and over-the-counter offerings designed to address conditions such as cataracts, dry eye, glaucoma, acne, rosacea, migraine and gastrointestinal disorders.

The Ophthalmology segment under the Bausch + Lomb name provides products for eye health, including prescription drops, contact lens care solutions, intraocular lenses, surgical instruments and diagnostic devices.

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