Wall Street Zen Upgrades Omada Health (NASDAQ:OMDA) to Buy

Key Points

• Wall Street Zen upgraded Omada Health to “buy” from “hold,” contributing to a broader consensus “Moderate Buy” rating. Analysts’ average price target is $25.25, with 11 buy, two hold and one sell rating.
• Omada’s second-quarter results beat expectations, with revenue of $87.83 million versus the $80.93 million consensus and EPS of $0.08 versus an expected loss. Revenue grew 43% year over year, members increased 45%, and full-year 2026 revenue guidance was set above analyst estimates.
• Shares were trading at $23.67 after a reported 21.1% rise, but investors face potential overhang from insider selling. Company insiders sold 206,406 shares worth approximately $4.19 million over the past three months, while CEO Sean Duffy is scheduled to transition to executive chair in January 2027.

Omada Health (NASDAQ:OMDA - Get Free Report) was upgraded by analysts at Wall Street Zen from a "hold" rating to a "buy" rating in a research note issued on Saturday.

OMDA has been the topic of several other research reports. Needham & Company LLC reiterated a "buy" rating and set a $28.00 price target on shares of Omada Health in a research report on Friday, May 8th. The Goldman Sachs Group reaffirmed a "buy" rating on shares of Omada Health in a research report on Friday, May 8th. Wells Fargo & Company upped their target price on Omada Health from $17.00 to $18.00 and gave the stock an "equal weight" rating in a report on Friday, May 8th. Citigroup reissued an "outperform" rating on shares of Omada Health in a research report on Monday, July 20th. Finally, Barclays raised their target price on Omada Health from $20.00 to $25.00 and gave the company an "overweight" rating in a research note on Monday. Eleven research analysts have rated the stock with a Buy rating, two have given a Hold rating and one has assigned a Sell rating to the stock. Based on data from MarketBeat.com, Omada Health has a consensus rating of "Moderate Buy" and an average price target of $25.25.

Omada Health Trading Up 21.1%

Shares of Omada Health stock opened at $23.67 on Friday. The company's fifty day simple moving average is $20.36 and its two-hundred day simple moving average is $16.20. The company has a market cap of $1.41 billion, a P/E ratio of 473.40 and a beta of 1.73. Omada Health has a 12-month low of $10.28 and a 12-month high of $26.92.

Omada Health (NASDAQ:OMDA - Get Free Report) last issued its quarterly earnings data on Thursday, August 6th. The company reported $0.08 EPS for the quarter, topping the consensus estimate of ($0.02) by $0.10. Omada Health had a net margin of 1.39% and a return on equity of 2.67%. The business had revenue of $87.83 million during the quarter, compared to analyst estimates of $80.93 million. Analysts predict that Omada Health will post -0.01 EPS for the current fiscal year.

Insider Buying and Selling

In related news, CEO Sean P. Duffy sold 25,886 shares of Omada Health stock in a transaction dated Wednesday, July 1st. The shares were 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 of the company's stock, valued at $9,341,007.48. This trade represents a 5.91% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is available at this hyperlink. Also, CAO Craig Gracey sold 6,894 shares of the business's stock in a transaction dated Friday, June 12th. The stock was sold at an average price of $17.42, for a total transaction of $120,093.48. Following the sale, the chief accounting officer directly owned 9,191 shares in the company, valued at $160,107.22. The trade was a 42.86% decrease in their position. The disclosure for this sale is available in the SEC filing. Insiders sold a total of 206,406 shares of company stock worth $4,191,483 in the last three months. 6.38% of the stock is owned by corporate insiders.

Institutional Inflows and Outflows

A number of institutional investors and hedge funds have recently added to or reduced their stakes in the stock. Quarry LP bought a new stake in Omada Health in the fourth quarter worth $29,000. TD Waterhouse Canada Inc. bought a new position in Omada Health in the 4th quarter worth about $32,000. Raymond James Financial Inc. purchased a new stake in Omada Health during the 2nd quarter valued at about $32,000. Inlight Wealth Management LLC bought a new stake in Omada Health during the 4th quarter valued at about $45,000. Finally, Versant Capital Management Inc raised its holdings in Omada Health by 319.3% in the second quarter. Versant Capital Management Inc now owns 2,998 shares of the company's stock worth $66,000 after buying an additional 2,283 shares during the last quarter.

Trending Headlines about Omada Health

Here are the key news stories impacting Omada Health this week:

• Positive Sentiment: Second-quarter results exceeded expectations: Omada reported revenue of approximately $87.8 million, above the $80.9 million consensus estimate. Adjusted earnings per share also surpassed forecasts, with reports citing approximately $0.08 to $0.15 per share versus expectations ranging from a loss of $0.02 to $0.05. Results improved from a year-earlier loss. Omada Health quarterly earnings report
• Positive Sentiment: Growth remained strong: Second-quarter revenue rose 43% year over year, while total members increased 45%. Omada also achieved a record quarterly gross margin, supporting the case that operating leverage and scale are improving. Omada Health second-quarter results
• Positive Sentiment: 2026 revenue guidance was raised or reaffirmed above consensus: Omada projected full-year revenue of $334 million to $340 million, exceeding the approximately $327.2 million analyst estimate. The outlook signals continued demand for its virtual chronic-care platform. Omada Health revenue outlook
• Neutral Sentiment: Leadership transition announced: Co-founder and CEO Sean Duffy will become executive chair on January 1, 2027, while President Wei-Li Shao is scheduled to become CEO. The planned, internal succession may provide continuity, although investors could monitor execution under the new leadership. Omada Health CEO transition
• Negative Sentiment: CEO stock sale adds a modest overhang: Duffy sold 12,944 shares for approximately $264,000, reducing his direct position by 3.05%. The sale occurred before the earnings release and may be routine, but insider selling can temper sentiment.

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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.

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