Option Care Health (NASDAQ:OPCH) Trading 5.6% Higher – Should You Buy?

Shares of Option Care Health, Inc. (NASDAQ:OPCH) traded up 5.6% on Tuesday . The stock traded as high as $20.64 and last traded at $20.79. 1,794,971 shares traded hands during trading, a decline of 26% from the average session volume of 2,428,171 shares. The stock had previously closed at $19.69.

Analysts Set New Price Targets

A number of research firms recently weighed in on OPCH. Bank of America lowered Option Care Health from a “buy” rating to a “neutral” rating and set a $22.00 price objective for the company. in a research report on Friday, May 1st. Weiss Ratings lowered Option Care Health from a “hold (c)” rating to a “hold (c-)” rating in a research report on Monday, May 11th. Deutsche Bank Aktiengesellschaft reaffirmed a “buy” rating and set a $26.00 price objective on shares of Option Care Health in a research report on Friday, May 1st. Zacks Research lowered Option Care Health from a “hold” rating to a “strong sell” rating in a research report on Monday, May 11th. Finally, Morgan Stanley set a $28.00 price objective on Option Care Health in a research report on Wednesday, May 6th. One research analyst has rated the stock with a Strong Buy rating, eight have issued a Buy rating, three have assigned a Hold rating and one has issued a Sell rating to the company’s stock. According to MarketBeat.com, the stock presently has a consensus rating of “Moderate Buy” and an average target price of $31.25.

Option Care Health Trading Up 5.5%

The firm has a market cap of $3.26 billion, a P/E ratio of 16.10, a price-to-earnings-growth ratio of 1.09 and a beta of 0.68. The stock has a fifty day simple moving average of $26.62 and a 200 day simple moving average of $30.20. The company has a debt-to-equity ratio of 0.85, a quick ratio of 1.07 and a current ratio of 1.64.

Option Care Health (NASDAQ:OPCH) last announced its quarterly earnings data on Thursday, April 30th. The company reported $0.40 EPS for the quarter, beating the consensus estimate of $0.37 by $0.03. Option Care Health had a return on equity of 18.17% and a net margin of 3.64%.The business had revenue of $1.35 billion for the quarter, compared to the consensus estimate of $1.39 billion. During the same period in the previous year, the business earned $0.40 earnings per share. The business’s revenue was up 1.3% on a year-over-year basis. Option Care Health has set its FY 2026 guidance at 1.820-1.920 EPS. On average, research analysts expect that Option Care Health, Inc. will post 1.64 earnings per share for the current fiscal year.

Insider Activity

In other news, Director Harry M. Jansen Kraemer, Jr. bought 36,610 shares of the firm’s stock in a transaction that occurred on Monday, May 4th. The shares were bought at an average cost of $21.41 per share, for a total transaction of $783,820.10. Following the completion of the transaction, the director owned 450,000 shares of the company’s stock, valued at approximately $9,634,500. This represents a 8.86% increase in their ownership of the stock. The purchase was disclosed in a legal filing with the SEC, which is available through the SEC website. Also, CEO John Charles Rademacher bought 12,500 shares of the firm’s stock in a transaction that occurred on Monday, May 4th. The stock was purchased at an average price of $21.18 per share, for a total transaction of $264,750.00. Following the completion of the transaction, the chief executive officer directly owned 695,152 shares of the company’s stock, valued at $14,723,319.36. This represents a 1.83% increase in their position. The disclosure for this purchase is available in the SEC filing. Insiders have acquired 73,264 shares of company stock worth $1,548,316 over the last ninety days. Corporate insiders own 1.70% of the company’s stock.

Institutional Investors Weigh In On Option Care Health

Hedge funds have recently made changes to their positions in the company. Victory Capital Management Inc. raised its position in Option Care Health by 129.5% during the third quarter. Victory Capital Management Inc. now owns 383,605 shares of the company’s stock valued at $10,649,000 after purchasing an additional 216,489 shares during the period. Geneva Capital Management LLC raised its position in Option Care Health by 27.6% during the third quarter. Geneva Capital Management LLC now owns 1,369,862 shares of the company’s stock valued at $38,027,000 after purchasing an additional 296,216 shares during the period. Massachusetts Financial Services Co. MA raised its position in Option Care Health by 2.7% during the third quarter. Massachusetts Financial Services Co. MA now owns 1,244,321 shares of the company’s stock valued at $34,542,000 after purchasing an additional 33,019 shares during the period. Game Creek Capital LP purchased a new stake in Option Care Health during the third quarter valued at approximately $1,527,000. Finally, Tredje AP fonden purchased a new stake in Option Care Health during the third quarter valued at approximately $1,018,000. 98.05% of the stock is currently owned by hedge funds and other institutional investors.

About Option Care Health

Option Care Health (NASDAQ: OPCH) is a leading provider of home and alternate site infusion services in the United States. The company specializes in the administration of injectable therapies, including antibiotics, nutrition, hydration, immunoglobulin, pain management and specialty pharmaceuticals. Through its nationwide network of infusion pharmacies and nursing professionals, Option Care Health delivers customized care plans and in-home nursing visits to patients managing complex or chronic conditions outside of a hospital setting.

Option Care Health traces its current structure to the completion of its merger with BioScrip in early 2021, combining two of the industry’s most experienced home infusion businesses.