Option Care Health Inc. [NASDAQ: OPCH] closed the trading session at $21.40 on 08/05/21. The day’s price range saw the stock hit a low of $20.34, while the highest price level was $21.85. The company report on August 4, 2021 that Option Care Health Announces Upsizing and Pricing of Secondary Offering of 18,000,000 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 18,000,000 shares of the Company’s common stock at a price to the public of $20.25 per share in an underwritten public offering. The number of shares of common stock to be sold was increased to 18,000,000 shares from the previously announced 15,000,000 shares. The Selling Stockholder has also granted the underwriter a 30-day option to purchase up to 2,700,000 additional shares of common stock. The offering is expected to close on August 5, 2021, subject to customary closing conditions. The Company will not receive any proceeds from the offering.
This sale of shares represents approximately 10.0% of the current shares outstanding (or 11.5% 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 27.7% of the outstanding shares (or 26.2% assuming full exercise of the underwriter’s option to purchase additional shares), from the current 37.7%.
The stocks have a year to date performance of 36.83 percent and weekly performance of 2.98 percent. The stock has been moved at 7.54 percent over the last six months. The stock has performed -3.82 percent around the most recent 30 days and changed 21.45 percent over the most recent 3-months.
If compared to the average trading volume of 1.31M shares, OPCH reached to a volume of 5729802 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 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 $23.64 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.
Goldman have made an estimate for Option Care Health Inc. shares, keeping their opinion on the stock as Buy, with their previous recommendation back on July 19, 2021. While these analysts kept the previous recommendation, Deutsche Bank raised their target price to Buy. The new note on the price target was released on January 22, 2021, representing the official price target for Option Care Health Inc. stock. Previously, the target price had yet another raise to $21, while JP Morgan analysts kept a Overweight rating on OPCH stock.
The Average True Range (ATR) for Option Care Health Inc. is set at 0.84, with the Price to Sales ratio for OPCH stock in the period of the last 12 months amounting to 1.25. The Price to Book ratio for the last quarter was 3.78, with the Price to Cash per share for the same quarter was set at 0.61. Price to Free Cash Flow for OPCH in the course of the last twelve months was 37.54 with Quick ratio for the last quarter at 1.20.
OPCH stock trade performance evaluation
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 2.98. With this latest performance, OPCH shares dropped by -3.82% in over the last four-week period, additionally plugging by 7.54% over the last 6 months – not to mention a rise of 73.98% 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 55.30, with the RSI for the last a single of trading hit 57.18, and the three-weeks RSI is set at 54.81 for Option Care Health Inc. [OPCH]. The present Moving Average for the last 50 days of trading for this stock 20.76, while it was recorded at 20.82 for the last single week of trading, and 18.29 for the last 200 days.
Option Care Health Inc. [OPCH]: An insightful look at the core 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 +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.
Earnings per share (EPS) analysis for Option Care Health Inc. [OPCH] stock
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 Ownership positions
There are presently around $1,890 million, or 87.80% 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 0.40% of the total institutional ownership; VANGUARD GROUP INC, holding 8,301,639 shares of the stock with an approximate value of $177.66 million in OPCH stocks shares; and PARK WEST ASSET MANAGEMENT LLC, currently with $136.32 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 August and at the time of the August reporting period, where 102 institutional holders increased their position in Option Care Health Inc. [NASDAQ:OPCH] by around 37,261,530 shares. Additionally, 49 investors decreased positions by around 4,115,667 shares, while 21 investors held positions by with 46,937,068 shares. The mentioned changes placed institutional holdings at 88,314,265 shares, according to the latest SEC report filing. OPCH stock had 34 new institutional investments in for a total of 6,362,972 shares, while 17 institutional investors sold positions of 2,739,445 shares during the same period.