Oak Street Health Inc. [NYSE: OSH] surged by $0.96 during the normal trading session on Friday and reaching a high of $56.88 during the day while it closed the day at $56.51. The company report on March 12, 2021 that Oak Street Health Announces Pricing of $800.0 Million of Convertible Senior Notes.
Oak Street Health, Inc. (“Oak Street”) (NYSE: OSH), a network of value-based, primary care centers for adults on Medicare, announced the pricing of $800.0 million aggregate principal amount of Convertible Senior Notes due 2026 (the “notes”) in a private offering (the “offering”) to persons reasonably believed to be qualified institutional buyers pursuant to Rule 144A under the Securities Act of 1933, as amended (the “Securities Act”). Oak Street also granted the initial purchasers of the notes a 13-day option to purchase up to an additional $120.0 million aggregate principal amount of the notes. The sale of the notes to the initial purchasers is expected to settle on March 16, 2021, subject to customary closing conditions, and is expected to result in approximately $780.5 million in net proceeds to Oak Street after deducting the initial purchasers’ discount and estimated offering expenses payable by Oak Street (assuming no exercise of the initial purchasers’ option to purchase additional notes).
The notes will be senior, unsecured obligations of Oak Street. The notes will not bear regular interest, and the principal amount of the notes will not accrete. The notes will mature on March 15, 2026, unless earlier redeemed, repurchased or converted. Oak Street may not redeem the notes prior to March 20, 2024. Oak Street may redeem for cash all or any portion of the notes, at its option, on or after March 20, 2024, if the last reported sale price of Oak Street’s common stock has been at least 130% of the conversion price then in effect for at least 20 trading days (whether or not consecutive), during any 30 consecutive trading day period (including the last trading day of such period) ending on and including the trading day preceding the date on which Oak Street provides notice of redemption at a redemption price equal to 100% of the principal amount of the notes to be redeemed, plus any accrued and unpaid special interest to, but excluding, the redemption date. No sinking fund is provided for the notes, which means that Oak Street is not required to redeem or retire the notes periodically.
Oak Street Health Inc. stock has also gained 7.82% of its value over the past 7 days. However, OSH stock has inclined by 4.65% in the 3 months of the year. Over the past six months meanwhile, it has gained 28.70% and lost -7.60% year-on date.
The market cap for OSH stock reached $13.37 billion, with 219.34 million shares outstanding and 216.12 million shares in the current float. Compared to the average trading volume of 899.55K shares, OSH reached a trading volume of 4803047 in the most recent trading day, which is why market watchdogs consider the stock to be active.
Here’s what leading stock market gurus have to say about Oak Street Health Inc. [OSH]:
Based on careful and fact-backed analyses by Wall Street experts, the current consensus on the target price for OSH shares is $67.78 per share. Analysis on target price and performance of stocks is usually carefully studied by market experts, and the current Wall Street consensus on OSH stock is a recommendation set at 1.70. 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.
Canaccord Genuity have made an estimate for Oak Street Health Inc. shares, keeping their opinion on the stock as Buy, with their previous recommendation back on February 24, 2021. While these analysts kept the previous recommendation, Wolfe Research raised their target price to Outperform. The new note on the price target was released on January 28, 2021, representing the official price target for Oak Street Health Inc. stock.
The Average True Range (ATR) for Oak Street Health Inc. is set at 4.36, with the Price to Sales ratio for OSH stock in the period of the last 12 months amounting to 15.15. The Price to Book ratio for the last quarter was 26.91, with the Price to Cash per share for the same quarter was set at 2.01.
OSH stock trade performance evaluation
Oak Street Health Inc. [OSH] gain into the green zone at the end of the last week, gaining into a positive trend and gaining by 7.82. With this latest performance, OSH shares dropped by -1.62% in over the last four-week period, additionally plugging by 28.70% over the last 6 months.
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 OSH stock in for the last two-week period is set at 52.72, with the RSI for the last a single of trading hit 55.85, and the three-weeks RSI is set at 51.72 for Oak Street Health Inc. [OSH]. The present Moving Average for the last 50 days of trading for this stock 55.94, while it was recorded at 54.68 for the last single week of trading.
Oak Street Health Inc. [OSH]: An insightful look at the core fundamentals
Operating Margin for any stock indicates how profitable investing would be, and Oak Street Health Inc. [OSH] shares currently have an operating margin of -21.71 and a Gross Margin at +6.65. Oak Street Health Inc.’s Net Margin is presently recorded at -21.35.
Return on Total Capital for OSH is now -79.59, given the latest momentum, and Return on Invested Capital for the company is -83.64. Return on Equity for this stock declined to -97.24, with Return on Assets sitting at -34.72.
Reflecting on the efficiency of the workforce at the company, Oak Street Health Inc. [OSH] managed to generate an average of -$58,747 per employee. Receivables Turnover for the company is 4.15 with a Total Asset Turnover recorded at a value of 1.63.Oak Street Health Inc.’s liquidity data is similarly interesting compelling, with a Quick Ratio of 2.40 and a Current Ratio set at 2.40.
Oak Street Health Inc. [OSH]: Insider Ownership positions
There are presently around $9,630 million, or 76.30% of OSH stock, in the hands of institutional investors. The top three institutional holders of OSH stocks are: GENERAL ATLANTIC LLC with ownership of 76,074,617, which is approximately 0% of the company’s market cap and around 7.70% of the total institutional ownership; NEWLIGHT PARTNERS LP, holding 50,204,150 shares of the stock with an approximate value of $2.84 billion in OSH stocks shares; and FMR LLC, currently with $624.19 million in OSH stock with ownership of nearly 2.364% of the company’s market capitalization.
Positions in Oak Street Health Inc. stocks held by institutional investors increased at the end of March and at the time of the March reporting period, where 104 institutional holders increased their position in Oak Street Health Inc. [NYSE:OSH] by around 11,977,575 shares. Additionally, 35 investors decreased positions by around 1,914,381 shares, while 16 investors held positions by with 156,526,119 shares. The mentioned changes placed institutional holdings at 170,418,075 shares, according to the latest SEC report filing. OSH stock had 49 new institutional investments in for a total of 1,730,413 shares, while 14 institutional investors sold positions of 1,051,344 shares during the same period.