Option Care Health Inc. [NASDAQ: OPCH] gained 0.86% or 0.18 points to close at $21.00 with a heavy trading volume of 5963175 shares. The company report on June 9, 2021 that Option Care Health Announces Upsizing and Pricing of Secondary Offering of 15,000,000 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 15,000,000 shares of the Company’s common stock at a price to the public of $20.00 per share in an underwritten public offering. The number of shares of common stock to be sold was increased to 15,000,000 shares from the previously announced 10,000,000 shares. The Selling Stockholder has also granted the underwriter a 30-day option to purchase up to 2,250,000 additional shares of common stock. The offering is expected to close on June 10, 2021, subject to customary closing conditions. The Company will not receive any proceeds from the offering.
This sale of shares represents approximately 8.3% of the current shares outstanding (or 9.6% assuming full exercise of the underwriter’s option to purchase additional shares). Upon completion of this offering, the Selling Stockholder’s interest in the Company will be reduced to 38.9% of the outstanding shares (or 37.7% assuming full exercise of the underwriter’s option to purchase additional shares), from the current 47.3%.
It opened the trading session at $21.38, the shares rose to $22.69 and dropped to $20.32, the range by which the price of stock traded the whole day. The daily chart for OPCH points out that the company has recorded 32.66% gains over the past six months. However, it is still -99.62% lower than its most recent low trading price.
If we look at the average trading volume of 1.09M shares, OPCH reached to a volume of 5963175 in the most recent trading day, which is why market watchdogs consider the stock to be active.
Here is what top equities market gurus are saying about 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 $23.36 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 1.70. 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.
Deutsche Bank have made an estimate for Option Care Health Inc. shares, keeping their opinion on the stock as Buy, with their previous recommendation back on January 22, 2021. While these analysts kept the previous recommendation, JP Morgan raised their target price to Overweight. The new note on the price target was released on January 11, 2021, representing the official price target for Option Care Health Inc. stock. Previously, the target price had yet another raise to $18, while Goldman analysts kept a Neutral rating on OPCH stock.
The Average True Range (ATR) for Option Care Health Inc. is set at 0.93, with the Price to Sales ratio for OPCH stock in the period of the last 12 months amounting to 1.20. The Price to Book ratio for the last quarter was 3.71, with the Price to Cash per share for the same quarter was set at 0.62. Price to Free Cash Flow for OPCH in the course of the last twelve months was 36.04 with Quick ratio for the last quarter at 1.20.
Trading performance analysis for OPCH stock
Option Care Health Inc. [OPCH] gain into the green zone at the end of the last week, gaining into a positive trend and gaining by 15.77. With this latest performance, OPCH shares gained by 26.05% in over the last four-week period, additionally plugging by 32.66% over the last 6 months – not to mention a rise of 25.37% 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 70.15, with the RSI for the last a single of trading hit 76.10, and the three-weeks RSI is set at 65.40 for Option Care Health Inc. [OPCH]. The present Moving Average for the last 50 days of trading for this stock 18.61, while it was recorded at 20.02 for the last single week of trading, and 16.51 for the last 200 days.
Option Care Health Inc. [OPCH]: A deeper dive into fundamental analysis
Operating Margin for any stock indicates how profitable investing would be, and Option Care Health Inc. [OPCH] shares currently have an operating margin of +3.65 and a Gross Margin at +20.15. Option Care Health Inc.’s Net Margin is presently recorded at -0.27.
Return on Total Capital for OPCH is now 4.92, given the latest momentum, and Return on Invested Capital for the company is -0.36. Return on Equity for this stock declined to -0.84, with Return on Assets sitting at -0.29. 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 119.52. Additionally, OPCH Total Debt to Total Capital is recorded at 54.45, with Total Debt to Total Assets ending up at 43.79. Long-Term Debt to Equity for the company is recorded at 116.75, with the Long-Term Debt to Total Capital now at 53.18.
Reflecting on the efficiency of the workforce at the company, Option Care Health Inc. [OPCH] managed to generate an average of -$1,569 per employee. Receivables Turnover for the company is 9.26 with a Total Asset Turnover recorded at a value of 1.11.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.
Option Care Health Inc. [OPCH]: An earnings per share (EPS) analysis
With the latest financial reports released by the company, Option Care Health Inc. posted -0.04/share EPS, while the average EPS was predicted by analysts to be reported at -0.08/share. When compared, the two values demonstrate that the company surpassed 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%.
An analysis of insider ownership at Option Care Health Inc. [OPCH]
There are presently around $1,842 million, or 97.10% of OPCH stock, in the hands of institutional investors. The top three institutional holders of OPCH stocks are: FMR LLC with ownership of 10,119,868, which is approximately 420.791% of the company’s market cap and around 0.20% of the total institutional ownership; VANGUARD GROUP INC, holding 8,301,639 shares of the stock with an approximate value of $174.33 million in OPCH stocks shares; and PARK WEST ASSET MANAGEMENT LLC, currently with $133.77 million in OPCH stock with ownership of nearly 1.075% of the company’s market capitalization.
Positions in Option Care Health Inc. stocks held by institutional investors increased at the end of May and at the time of the May reporting period, where 103 institutional holders increased their position in Option Care Health Inc. [NASDAQ:OPCH] by around 36,767,184 shares. Additionally, 46 investors decreased positions by around 4,150,417 shares, while 18 investors held positions by with 46,787,879 shares. The mentioned changes placed institutional holdings at 87,705,480 shares, according to the latest SEC report filing. OPCH stock had 37 new institutional investments in for a total of 6,191,219 shares, while 14 institutional investors sold positions of 2,622,941 shares during the same period.