Oncology Institute (NASDAQ:TOI) Announces Earnings Results

Oncology Institute (NASDAQ:TOI) issued its earnings results on Thursday. The company reported ($0.08) earnings per share for the quarter, missing the consensus estimate of ($0.07) by ($0.01), FiscalAI reports. The business had revenue of $161.28 million during the quarter, compared to analyst estimates of $155.28 million.

Here are the key takeaways from Oncology Institute’s conference call:

• Q2 revenue rose 34.6% year over year to $161.3 million, while adjusted EBITDA reached $0.2 million, marking the company’s second profitable quarter as a public company. Gross margin improved to 16.8% from 14.6% a year ago.
• Starling completed a refinancing that replaced its $86 million convertible note with a $75 million term loan, using $11 million of cash and avoiding shareholder dilution. The transaction extends debt maturities from 2027 to 2031 and improves liquidity.
• The company expects three new delegated capitation contracts in Q4 representing approximately 80,000 lives and $50 million in annualized capitated revenue, while a California exclusivity win adds roughly 230,000 lives and an estimated $6 million in annualized capitation revenue.
• Full-year guidance was raised to $650 million-$670 million of revenue, $105 million-$110 million of gross profit, and $2 million-$7 million of adjusted EBITDA; positive free cash flow guidance of $5 million-$15 million was maintained.
• Patient-services gross profit fell 57% year over year to $2.1 million, and capitated medical loss ratio increased to 85.5% from 71% a year ago as new members ramp. Management expects MLR to fluctuate within an 80%-90% range over the next 12 months, while the Florida contract launch was delayed from Q3 to Q4.

Oncology Institute Trading Up 1.1%

Shares of TOI traded up $0.06 during trading hours on Friday, hitting $5.19. The company had a trading volume of 1,263,820 shares, compared to its average volume of 1,921,963. The company has a market capitalization of $512.58 million, a PE ratio of -14.02 and a beta of 0.39. Oncology Institute has a one year low of $2.32 and a one year high of $6.67. The company’s fifty day moving average price is $5.22 and its two-hundred day moving average price is $3.96.

Analysts Set New Price Targets

Several brokerages have recently commented on TOI. Lake Street Capital began coverage on Oncology Institute in a research note on Monday, July 6th. They set a “buy” rating and a $10.00 price target on the stock. Needham & Company LLC raised their target price on shares of Oncology Institute from $5.00 to $7.00 and gave the company a “buy” rating in a research report on Wednesday, June 17th. Weiss Ratings restated a “sell (d-)” rating on shares of Oncology Institute in a report on Friday, July 17th. Finally, BTIG Research upped their price target on shares of Oncology Institute from $8.00 to $9.00 and gave the stock a “buy” rating in a research report on Thursday, July 9th. Four analysts have rated the stock with a Buy rating and one has assigned a Sell rating to the stock. According to MarketBeat, the company has an average rating of “Moderate Buy” and a consensus target price of $8.50.

Insider Transactions at Oncology Institute

In other Oncology Institute news, insider Yale Podnos sold 23,451 shares of the stock in a transaction dated Monday, June 8th. The shares were sold at an average price of $5.38, for a total transaction of $126,166.38. Following the completion of the sale, the insider directly owned 259,527 shares of the company’s stock, valued at approximately $1,396,255.26. This represents a 8.29% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which can be accessed through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, major shareholder Jorey Chernett purchased 18,000 shares of the stock in a transaction dated Tuesday, July 21st. The stock was purchased at an average price of $5.27 per share, for a total transaction of $94,860.00. Following the completion of the acquisition, the insider directly owned 10,648,858 shares in the company, valued at approximately $56,119,481.66. This represents a 0.17% increase in their position. Additional details regarding this purchase are available in the official SEC disclosure. In the last ninety days, insiders have purchased 131,500 shares of company stock worth $609,265. 4.40% of the stock is owned by corporate insiders.

Institutional Investors Weigh In On Oncology Institute

Hedge funds and other institutional investors have recently bought and sold shares of the company. Caitong International Asset Management Co. Ltd grew its stake in Oncology Institute by 344.0% during the 4th quarter. Caitong International Asset Management Co. Ltd now owns 14,545 shares of the company’s stock worth $52,000 after buying an additional 11,269 shares during the last quarter. EntryPoint Capital LLC acquired a new position in Oncology Institute during the 4th quarter valued at about $66,000. Sherbrooke Park Advisers LLC purchased a new stake in shares of Oncology Institute during the third quarter worth about $51,000. Bank of America Corp DE grew its holdings in shares of Oncology Institute by 779.9% during the second quarter. Bank of America Corp DE now owns 25,808 shares of the company’s stock valued at $53,000 after buying an additional 22,875 shares during the last quarter. Finally, MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. acquired a new position in shares of Oncology Institute in the 2nd quarter valued at $66,000. Hedge funds and other institutional investors own 36.86% of the company’s stock.

Oncology Institute Company Profile

The Oncology Institute, Inc, an oncology company, provides various medical oncology services in the United States. The company operates through three segments: Dispensary, Patient Services, and Clinical Trials & Other. It offers physician services, in-house infusion and dispensary, clinical trial, radiation, outpatient blood product transfusion, and patient support services, as well as educational seminars, support groups, and counseling services. The company also provides managing clinical trials, palliative care programs, stem cell transplants services, and other care delivery models associated with non-community-based academic and tertiary care settings; and conducts clinical trials for a range of pharmaceutical and medical device companies.