Option Care Health (NASDAQ:OPCH) Cut to “Hold” at Barrington Research

Barrington Research lowered shares of Option Care Health (NASDAQ:OPCH) from an outperform rating to a hold rating in a research note released on Wednesday morning, Marketbeat.com reports.

OPCH has been the subject of several other research reports. Weiss Ratings raised Option Care Health from a “sell (d+)” rating to a “hold (c-)” rating in a research report on Friday, September 11th. Stephens reissued an “equal weight” rating and set a $24.00 price objective (down from $30.00) on shares of Option Care Health in a research report on Friday, July 17th. Jefferies Financial Group lowered shares of Option Care Health from a “buy” rating to a “hold” rating and raised their price objective for the company from $28.00 to $32.05 in a research note on Tuesday. William Blair cut shares of Option Care Health from an “outperform” rating to a “market perform” rating in a report on Tuesday. Finally, UBS Group reiterated a “buy” rating on shares of Option Care Health in a research note on Tuesday, September 22nd. Two equities research analysts have rated the stock with a Buy rating and fourteen have given a Hold rating to the company. Based on data from MarketBeat, the stock presently has a consensus rating of “Hold” and a consensus target price of $29.17.

Option Care Health Stock Up 0.1%

OPCH stock opened at $31.07 on Wednesday. Option Care Health has a twelve month low of $18.01 and a twelve month high of $36.80. The company has a quick ratio of 0.98, a current ratio of 1.47 and a debt-to-equity ratio of 0.91. The firm has a market cap of $4.65 billion, a PE ratio of 23.36, a price-to-earnings-growth ratio of 1.89 and a beta of 0.58. The business has a 50 day moving average of $24.25 and a 200 day moving average of $23.64.

Option Care Health (NASDAQ:OPCH) last released its earnings results on Wednesday, July 29th. The company reported $0.45 EPS for the quarter, topping the consensus estimate of $0.43 by $0.02. Option Care Health had a return on equity of 18.74% and a net margin of 3.68%. The business had revenue of $1.44 billion for the quarter, compared to the consensus estimate of $1.42 billion. During the same period in the previous year, the company posted $0.41 earnings per share. The company’s revenue for the quarter was up 1.9% compared to the same quarter last year. Option Care Health has set its FY 2026 guidance at 1.850-1.920 EPS. On average, research analysts forecast that Option Care Health will post 1.70 EPS for the current fiscal year.

Institutional Inflows and Outflows

A number of hedge funds and other institutional investors have recently modified their holdings of the business. Squarepoint Ops LLC boosted its holdings in shares of Option Care Health by 234.1% during the 2nd quarter. Squarepoint Ops LLC now owns 434,408 shares of the company’s stock valued at $9,110,000 after acquiring an additional 304,376 shares during the last quarter. Raiffeisen Bank International AG grew its stake in shares of Option Care Health by 92.3% in the second quarter. Raiffeisen Bank International AG now owns 250,000 shares of the company’s stock worth $5,330,000 after acquiring an additional 120,000 shares during the period. Sumitomo Mitsui Trust Group Inc. bought a new position in Option Care Health during the first quarter valued at approximately $70,287,000. Paralel Advisors LLC bought a new position in Option Care Health during the second quarter valued at approximately $1,800,000. Finally, Van Berkom & Associates Inc. bought a new position in Option Care Health during the first quarter valued at approximately $42,739,000. 98.05% of the stock is owned by institutional investors.

Key Headlines Impacting Option Care Health

Here are the key news stories impacting Option Care Health this week:

• Positive Sentiment: The proposed CD&R and McKesson buyout provides a clear cash value of $32.05 per share and represents a substantial premium to Option Care Health’s pre-deal trading levels. Option Care Health agrees to $32.05 buyout by CD&R and McKesson
• Positive Sentiment: One analysis argues that Option Care Health may still be undervalued despite the $5.8 billion transaction, supporting the view that the offer could be attractive relative to the company’s underlying business value. Option Care Health stock may be undervalued despite the $5.8 billion buyout
• Neutral Sentiment: JPMorgan reaffirmed a “Neutral” rating, indicating limited expected upside beyond the announced offer price and a focus on deal completion rather than ongoing operating growth. JPMorgan reaffirms neutral rating
• Neutral Sentiment: Analyst price-target coverage remains relevant mainly for gauging the spread to the $32.05 cash consideration, as the pending acquisition limits the importance of standalone valuation targets. Option Care Health analyst price targets
• Negative Sentiment: Several firms have reduced their ratings: Citizens JMP moved to “Hold,” Barrington Research downgraded the stock to “Market Perform,” and Truist cut its rating from “Strong Buy” to “Hold.” The downgrades signal reduced upside after the buyout announcement. Citizens JMP lowers rating to hold Barrington Research downgrade
• Negative Sentiment: Kahn Swick & Foti is investigating whether the $32.05 consideration and sale process were adequate. Such scrutiny could create legal or timing uncertainty, although the investigation does not itself indicate that the transaction will fail. Investor alert regarding the proposed sale

Option Care Health Company Profile

Option Care Health, Inc (NASDAQ: OPCH) is a provider of home and alternate-site infusion services in the United States. The company works with patients, physicians, hospitals, health plans and pharmaceutical manufacturers to deliver and manage infusion therapy outside traditional hospital settings, including in patients’ homes, ambulatory infusion suites and other community-based locations.

Its services include the provision and administration of specialty medications and other infusion therapies for conditions such as infections, immune disorders, chronic diseases and nutritional deficiencies.