Option Care Health Inc. [NASDAQ: OPCH] stock went on a downward path that fall over -8.49% on Friday, amounting to a one-week price decrease of less than -7.52%. The company report on December 10, 2020 that Option Care Health Announces Pricing of Secondary Offering of 10,000,000 Shares of Common Stock.
Option Care Health, Inc. (“Option Care Health” or the “Company”) (NASDAQ: OPCH) announced that an affiliate of Madison Dearborn Partners (the “Selling Stockholder”) has agreed to sell 10,000,000 shares of the Company’s common stock at a price to the public of $15.00 per share in an underwritten public offering. The Selling Stockholder has also granted the underwriter a 30-day option to purchase up to 1,500,000 additional shares of common stock. The offering is expected to close on December 14, 2020, subject to customary closing conditions. The Company will not receive any proceeds from the offering.
Assuming exercise of the underwriter’s option to purchase additional shares, this sale of shares represents approximately 6.2% of the current shares outstanding. Upon completion of this offering, the Selling Stockholder’s interest in the Company will be reduced to 64.5% of the outstanding shares, from the current 70.6%.
Over the last 12 months, OPCH stock rose by 12.65%. The one-year Option Care Health Inc. stock forecast points to a potential upside of 27.82. The average equity rating for OPCH stock is currently 1.30, trading closer to a bullish pattern in the stock market.
The market cap for the stock reached $3.03 billion, with 184.23 million shares outstanding and 53.91 million shares in the current float. Compared to the average trading volume of 537.03K shares, OPCH stock reached a trading volume of 3190420 in the most recent trading day, which is why market watchdogs consider the stock to be active.
Guru’s Opinion on Option Care Health Inc. [OPCH]:
Based on careful and fact-backed analyses by Wall Street experts, the current consensus on the target price for OPCH shares is $20.60 per share. Analysis on target price and performance of stocks is usually carefully studied by market experts, and the current Wall Street consensus on OPCH stock is a recommendation set at 1.30. This rating represents a strong Buy recommendation, on the scale from 1 to 5, where 5 would mean strong sell, 4 represents Sell, 3 is Hold, and 2 indicates Buy.
BofA/Merrill have made an estimate for Option Care Health Inc. shares, keeping their opinion on the stock as Buy, with their previous recommendation back on June 24, 2020.
The Average True Range (ATR) for Option Care Health Inc. is set at 0.76, with the Price to Sales ratio for OPCH stock in the period of the last 12 months amounting to 1.03. The Price to Book ratio for the last quarter was 2.76, with the Price to Cash per share for the same quarter was set at 0.69. Price to Free Cash Flow for OPCH in the course of the last twelve months was 31.42 with Quick ratio for the last quarter at 1.20.
OPCH Stock Performance Analysis:
Option Care Health Inc. [OPCH] fell into the red zone at the end of the last week, falling into a negative trend and dropping by -7.52. With this latest performance, OPCH shares dropped by -7.29% in over the last four-week period, additionally sinking by -0.20% over the last 6 months – not to mention a rise of 12.65% in the past year of trading.
Overbought and oversold stocks can be easily traced with the Relative Strength Index (RSI), where an RSI result of over 70 would be overbought, and any rate below 30 would indicate oversold conditions. An RSI rate of 50 would represent a neutral market momentum. The current RSI for OPCH stock in for the last two-week period is set at 41.11, with the RSI for the last a single of trading hit 34.16, and the three-weeks RSI is set at 47.15 for Option Care Health Inc. [OPCH]. The present Moving Average for the last 50 days of trading for this stock 14.86, while it was recorded at 15.94 for the last single week of trading, and 13.03 for the last 200 days.
Insight into Option Care Health Inc. Fundamentals:
Operating Margin for any stock indicates how profitable investing would be, and Option Care Health Inc. [OPCH] shares currently have an operating margin of +1.16 and a Gross Margin at +19.88. Option Care Health Inc.’s Net Margin is presently recorded at -3.29.
Return on Total Capital for OPCH is now 1.97, given the latest momentum, and Return on Invested Capital for the company is -5.64. Return on Equity for this stock declined to -17.74, with Return on Assets sitting at -4.61. When it comes to the capital structure of this company, Option Care Health Inc. [OPCH] has a Total Debt to Total Equity ratio set at 150.54. Additionally, OPCH Total Debt to Total Capital is recorded at 60.09, with Total Debt to Total Assets ending up at 50.42. Long-Term Debt to Equity for the company is recorded at 147.27, with the Long-Term Debt to Total Capital now at 58.78.
Reflecting on the efficiency of the workforce at the company, Option Care Health Inc. [OPCH] managed to generate an average of -$12,861 per employee. Receivables Turnover for the company is 10.52 with a Total Asset Turnover recorded at a value of 1.40.Option Care Health Inc.’s liquidity data is similarly interesting compelling, with a Quick Ratio of 1.20 and a Current Ratio set at 1.60.
OPCH Stock EPS
With the latest financial reports released by the company, Option Care Health Inc. posted -0.09/share EPS, while the average EPS was predicted by analysts to be reported at -0.06/share. When compared, the two values demonstrate that the company fail the estimates by a Surprise Factor of -50.00%. The progress of the company may be observed through the prism of EPS growth rate, while Wall Street analysts are focusing on predicting the 5-year EPS growth rate for OPCH. When it comes to the mentioned value, analysts are expecting to see the 5-year EPS growth rate for Option Care Health Inc. go to 10.00%.
Option Care Health Inc. [OPCH] Insider Position Details
There are presently around $734 million, or 97.20% of OPCH stock, in the hands of institutional investors. The top three institutional holders of OPCH stocks are: ARES MANAGEMENT LLC with ownership of 4,932,982, which is approximately 25.426% of the company’s market cap and around 0.20% of the total institutional ownership; VANGUARD GROUP INC, holding 4,827,514 shares of the stock with an approximate value of $71.78 million in OPCH stocks shares; and PARK WEST ASSET MANAGEMENT LLC, currently with $59.48 million in OPCH stock with ownership of nearly New of the company’s market capitalization.
Positions in Option Care Health Inc. stocks held by institutional investors increased at the end of November and at the time of the November reporting period, where 85 institutional holders increased their position in Option Care Health Inc. [NASDAQ:OPCH] by around 22,588,796 shares. Additionally, 27 investors decreased positions by around 2,686,887 shares, while 23 investors held positions by with 24,063,770 shares. The mentioned changes placed institutional holdings at 49,339,453 shares, according to the latest SEC report filing. OPCH stock had 36 new institutional investments in for a total of 11,023,922 shares, while 12 institutional investors sold positions of 189,058 shares during the same period.