Omada Health (NASDAQ:OMDA) Shares Gap Down Following Analyst Downgrade

Omada Health, Inc. (NASDAQ:OMDA) gapped down before the market opened on Friday after Wells Fargo & Company lowered their price target on the stock from $22.00 to $19.00. The stock had previously closed at $18.95, but opened at $16.00. Wells Fargo & Company currently has an equal weight rating on the stock. Omada Health shares last traded at $15.4060, with a volume of 375,774 shares traded.

Several other brokerages also recently weighed in on OMDA. Barclays lowered their target price on shares of Omada Health from $27.00 to $24.00 and set an “overweight” rating for the company in a research note on Wednesday, October 28th. Zacks Research downgraded Omada Health from a “strong-buy” rating to a “hold” rating in a research report on Wednesday. Robert W. Baird increased their price objective on Omada Health from $15.00 to $25.00 and gave the company a “neutral” rating in a report on Wednesday, August 12th. Needham & Company LLC reissued a “buy” rating and issued a $28.00 price objective on shares of Omada Health in a research report on Friday, September 11th. Finally, BMO Capital Markets reaffirmed an “outperform” rating and set a $24.00 target price on shares of Omada Health in a research report on Friday, August 7th. Eleven investment analysts have rated the stock with a Buy rating, three have assigned a Hold rating and one has assigned a Sell rating to the stock. Based on data from MarketBeat, Omada Health presently has a consensus rating of “Moderate Buy” and a consensus target price of $26.50.

Insider Buying and Selling at Omada Health

In other news, CEO Sean P. Duffy sold 21,572 shares of the company’s stock in a transaction dated Tuesday, September 1st. The stock was sold at an average price of $23.62, for a total value of $509,530.64. Following the sale, the chief executive officer owned 411,861 shares in the company, valued at $9,728,156.82. This represents a 4.98% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available through the SEC website. Also, President Wei-Li Shao sold 8,866 shares of the firm’s stock in a transaction dated Wednesday, August 12th. The stock was sold at an average price of $25.02, for a total value of $221,827.32. Following the sale, the president directly owned 307,372 shares in the company, valued at approximately $7,690,447.44. This trade represents a 2.80% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. In the last quarter, insiders sold 106,070 shares of company stock worth $2,462,621. Insiders own 6.38% of the company’s stock.

Key Omada Health News

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

• Positive Sentiment: Revenue rose 34% year over year to $91 million, and total members grew 36% to a record 1.1 million. Omada also reported $7 million in net income versus a year-ago loss, higher gross margins, and $12 million in adjusted EBITDA. The company raised its full-year 2026 financial outlook. Omada Health Reports Third Quarter 2026 Results
• Positive Sentiment: Quarterly earnings and revenue exceeded analyst estimates, reinforcing the company’s improving operating performance. Q3 Earnings and Revenues Beat Estimates
• Neutral Sentiment: Wells Fargo lowered its price target from $22 to $19 and maintained an equal-weight rating. The new target remains above the quoted share price, but the reduction signals more restrained expectations. Wells Fargo Recommendations
• Negative Sentiment: Zacks Research downgraded Omada from “strong buy” to “hold,” adding to the cautious analyst signals despite the earnings beat. Tickerreport coverage

Institutional Investors Weigh In On Omada Health

A number of hedge funds and other institutional investors have recently made changes to their positions in the company. BlackRock Inc. purchased a new position in shares of Omada Health during the 2nd quarter valued at approximately $48,775,000. Jefferies Financial Group Inc. acquired a new position in shares of Omada Health in the 2nd quarter valued at $15,016,000. Madryn Asset Management LP purchased a new stake in Omada Health during the second quarter worth $12,814,410. Walleye Capital LLC purchased a new stake in Omada Health during the second quarter worth $11,648,000. Finally, Bank of America Corp DE acquired a new stake in Omada Health during the second quarter valued at $6,880,000.

Omada Health Stock Down 18.7%

The company’s 50-day moving average is $20.33 and its 200 day moving average is $17.74. The company has a market cap of $943.16 million, a price-to-earnings ratio of 307.98 and a beta of 2.13.

Omada Health (NASDAQ:OMDA) last issued its quarterly earnings data on Thursday, November 5th. The company reported $0.10 earnings per share for the quarter, topping analysts’ consensus estimates of $0.02 by $0.08. Omada Health had a net margin of 1.39% and a return on equity of 2.60%. The business had revenue of $91.31 million during the quarter. Analysts predict that Omada Health, Inc. will post 0.09 EPS for the current fiscal year.

About Omada Health

Omada Health, Inc (NASDAQ: OMDA) is a digital health company that provides virtual care programs for people managing chronic conditions. Its platform combines personalized health coaching, clinical support, behavioral-change tools and connected devices to help members monitor and improve their health.

The company’s offerings focus primarily on cardiometabolic conditions, including diabetes, prediabetes, hypertension and obesity, as well as musculoskeletal conditions. Depending on the program, members may receive access to digital lessons, health tracking, remote monitoring, care teams and clinical guidance through Omada’s technology platform.

Omada Health was founded in 2011 and serves employers, health plans and other healthcare organizations in the United States.