Option Care Health (NASDAQ:OPCH) Shares Gap Up After Better-Than-Expected Earnings

Option Care Health, Inc. (NASDAQ:OPCH) gapped up before the market opened on Wednesday after the company announced better than expected quarterly earnings. The stock had previously closed at $22.48, but opened at $23.93. Option Care Health shares last traded at $23.8160, with a volume of 1,179,320 shares traded.

The company reported $0.45 EPS for the quarter, topping analysts’ consensus estimates of $0.43 by $0.02. Option Care Health had a return on equity of 18.17% and a net margin of 3.64%.The business had revenue of $1.44 billion for the quarter, compared to analyst estimates of $1.42 billion. During the same period in the previous year, the company posted $0.41 earnings per share. The firm’s revenue for the quarter was up 1.9% on a year-over-year basis. Option Care Health has set its FY 2026 guidance at 1.850-1.920 EPS.

Wall Street Analyst Weigh In

Several brokerages have recently issued reports on OPCH. Stephens restated an “equal weight” rating and issued a $24.00 price objective (down from $30.00) on shares of Option Care Health in a research note on Friday, July 17th. Weiss Ratings cut shares of Option Care Health from a “hold (c-)” rating to a “sell (d+)” rating in a research note on Thursday, July 23rd. Deutsche Bank Aktiengesellschaft reissued a “buy” rating and issued a $26.00 price target on shares of Option Care Health in a report on Friday, May 1st. Morgan Stanley set a $28.00 price target on shares of Option Care Health in a research report on Wednesday, May 6th. Finally, UBS Group restated a “buy” rating on shares of Option Care Health in a report on Tuesday, June 16th. Eight equities research analysts have rated the stock with a Buy rating, five have assigned a Hold rating and one has assigned a Sell rating to the company. According to data from MarketBeat, the stock presently has an average rating of “Moderate Buy” and an average price target of $30.08.

Insider Activity at Option Care Health

In related news, Director Timothy P. Sullivan acquired 24,154 shares of the firm’s stock in a transaction on Thursday, May 7th. The shares were bought at an average cost of $20.69 per share, with a total value of $499,746.26. Following the completion of the acquisition, the director owned 73,383 shares of the company’s stock, valued at $1,518,294.27. This trade represents a 49.06% increase in their ownership of the stock. The acquisition was disclosed in a document filed with the SEC, which is available through this hyperlink. Also, CEO John Charles Rademacher acquired 12,500 shares of the stock in a transaction dated Monday, May 4th. The stock was bought at an average price of $21.18 per share, for a total transaction of $264,750.00. Following the completion of the purchase, the chief executive officer owned 695,152 shares in the company, valued at approximately $14,723,319.36. This trade represents a 1.83% increase in their position. The disclosure for this purchase is available in the SEC filing. Insiders have acquired a total of 73,264 shares of company stock valued at $1,548,316 over the last quarter. 1.70% of the stock is owned by company insiders.

Institutional Trading of Option Care Health

Several institutional investors have recently bought and sold shares of the stock. V Square Quantitative Management LLC bought a new position in shares of Option Care Health during the fourth quarter valued at $25,000. Advisory Services Network LLC bought a new stake in shares of Option Care Health in the 3rd quarter worth about $35,000. McIlrath & Eck LLC acquired a new stake in shares of Option Care Health during the 2nd quarter worth about $37,000. Caitong International Asset Management Co. Ltd bought a new position in Option Care Health during the 3rd quarter valued at about $38,000. Finally, Quarry LP grew its stake in Option Care Health by 502.7% during the third quarter. Quarry LP now owns 1,549 shares of the company’s stock worth $43,000 after buying an additional 1,292 shares during the last quarter. Institutional investors and hedge funds own 98.05% of the company’s stock.

Option Care Health Trading Up 6.2%

The company has a market cap of $3.75 billion, a price-to-earnings ratio of 18.49, a price-to-earnings-growth ratio of 1.21 and a beta of 0.65. The company has a quick ratio of 1.07, a current ratio of 1.64 and a debt-to-equity ratio of 0.85. The company’s fifty day moving average price is $21.39 and its two-hundred day moving average price is $26.94.

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.