Bausch Health Cos (NYSE:BHC) Stock Sees Unusually High Call Option Buying

Bausch Health Cos Inc. (NYSE:BHC) saw unusually large options trading activity on Thursday. Traders acquired 6,018 call options on the stock. This represents an increase of 120% compared to the average daily volume of 2,732 call options.

Analysts Set New Price Targets

A number of equities analysts have recently weighed in on the company. Jefferies Financial Group reaffirmed a “hold” rating and set a $8.00 target price on shares of Bausch Health Cos in a research report on Thursday. Royal Bank Of Canada raised their price target on shares of Bausch Health Cos from $9.00 to $10.00 and gave the company a “sector perform” rating in a research report on Thursday. Wall Street Zen raised Bausch Health Cos from a “buy” rating to a “strong-buy” rating in a report on Saturday, August 1st. Weiss Ratings raised Bausch Health Cos from a “sell (d-)” rating to a “sell (d)” rating in a research report on Friday, July 31st. Finally, Zacks Research upgraded shares of Bausch Health Cos from a “hold” rating to a “strong-buy” rating in a report on Monday, September 21st. One equities research analyst has rated the stock with a Strong Buy rating, five have given a Hold rating and one has assigned a Sell rating to the company’s stock. According to data from MarketBeat, Bausch Health Cos presently has a consensus rating of “Hold” and an average price target of $8.25.

Key Bausch Health Cos News

Here are the key news stories impacting Bausch Health Cos this week:

• Positive Sentiment: Strong Q3 results and raised outlook: Bausch Health reported third-quarter revenue of approximately $2.94 billion, up 10% year over year, while adjusted EPS of $1.77 exceeded estimates. Adjusted EBITDA rose 32% to $1.305 billion, with growth led in part by Salix and its Xifaxan franchise. Management raised full-year 2026 revenue, adjusted EBITDA, and adjusted operating cash-flow guidance. Bausch Health Announces Third Quarter 2026 Results, Raises Guidance
• Positive Sentiment: Continued operating momentum: Excluding Bausch + Lomb, the company delivered its 14th consecutive quarter of year-over-year revenue and adjusted EBITDA growth. It generated $581 million in operating cash flow and $539 million in adjusted cash flow from operations, supporting confidence in its deleveraging capacity. BHC Q3 Earnings Beat on Salix Growth
• Positive Sentiment: Debt and shareholder-support measures: Bausch Health plans to redeem about $643 million of 8.5% senior notes due 2027 using cash on hand, which should reduce expensive debt and future interest expense. The company also authorized a $50 million share-repurchase program, primarily to offset employee-equity dilution. Bausch Health Announces Full Redemption of Senior Notes
• Neutral Sentiment: Analyst view improved modestly: Royal Bank of Canada raised its price target from $9 to $10 while maintaining a “sector perform” rating, implying additional upside but not a bullish recommendation. Royal Bank of Canada recommendations
• Neutral Sentiment: Call-option activity was more than twice its typical level, signaling increased speculative interest but not necessarily confirming institutional conviction.
• Negative Sentiment: Despite the quarter’s improvement, Bausch Health continues to carry significant financial leverage and reported negative trailing net margin and return on equity, leaving execution and balance-sheet risks for investors.

Insiders Place Their Bets

In related news, insider Aimee Lenar sold 36,827 shares of the business’s stock in a transaction on Wednesday, August 19th. The shares were sold at an average price of $7.03, for a total value of $258,893.81. Following the transaction, the insider owned 334,853 shares in the company, valued at $2,354,016.59. The trade was a 9.91% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. 20.67% of the stock is owned by corporate insiders.

Institutional Trading of Bausch Health Cos

A number of institutional investors and hedge funds have recently added to or reduced their stakes in BHC. Paulson & CO. Inc. bought a new stake in shares of Bausch Health Cos during the 2nd quarter valued at about $361,151,000. The Manufacturers Life Insurance Company purchased a new stake in shares of Bausch Health Cos in the 2nd quarter worth about $1,167,000. Dimensional Fund Advisors LP boosted its stake in Bausch Health Cos by 10.8% during the first quarter. Dimensional Fund Advisors LP now owns 3,604,818 shares of the company’s stock worth $19,456,000 after acquiring an additional 350,823 shares in the last quarter. MFN Partners Management LP bought a new stake in shares of Bausch Health Cos in the 2nd quarter worth approximately $29,580,000. Finally, Royal Bank of Canada grew its stake in shares of Bausch Health Cos by 24.9% in the first quarter. Royal Bank of Canada now owns 11,363,498 shares of the company’s stock worth $61,362,000 after acquiring an additional 2,262,894 shares during the last quarter. Hedge funds and other institutional investors own 78.65% of the company’s stock.

Bausch Health Cos Stock Up 28.4%

BHC traded up $1.97 during trading hours on Thursday, hitting $8.89. The stock had a trading volume of 32,976,378 shares, compared to its average volume of 2,592,033. The company’s fifty day simple moving average is $6.17 and its 200 day simple moving average is $5.71. The stock has a market cap of $3.33 billion, a PE ratio of -3.00 and a beta of 0.37. Bausch Health Cos has a 1 year low of $4.33 and a 1 year high of $9.04.

Bausch Health Cos (NYSE:BHC) last issued its quarterly earnings data on Wednesday, October 28th. The company reported $1.77 EPS for the quarter, beating the consensus estimate of $1.25 by $0.52. Bausch Health Cos had a negative net margin of 10.12% and a negative return on equity of 561.95%. The company had revenue of $2.90 billion during the quarter, compared to analysts’ expectations of $2.72 billion. As a group, equities analysts expect that Bausch Health Cos will post 4.35 EPS for the current year.

About Bausch Health Cos

Bausch Health Companies Inc (NYSE:BHC) is a multinational specialty pharmaceutical company focused on developing, manufacturing and commercializing branded, generic and over-the-counter medicines. Its portfolio serves several therapeutic areas, including gastroenterology, dermatology, neurology, ophthalmology, hospital products and other specialty-care markets.

The company markets products through businesses such as Salix Pharmaceuticals, Ortho Dermatologics, Solta Medical and its international pharmaceutical operations.