Option Care Health (NASDAQ:OPCH) Cut to “Hold” at Truist Financial

Truist Financial lowered shares of Option Care Health (NASDAQ:OPCH) from a strong-buy rating to a hold rating in a report issued on Wednesday morning,Zacks reports.

A number of other brokerages also recently issued reports on OPCH. Barrington Research downgraded shares of Option Care Health from an “outperform” rating to a “hold” rating in a research report on Wednesday. Wall Street Zen raised Option Care Health from a “hold” rating to a “buy” rating in a report on Saturday, August 1st. Jefferies Financial Group downgraded Option Care Health from a “buy” rating to a “hold” rating and lifted their target price for the company from $28.00 to $32.05 in a research report on Tuesday. William Blair lowered Option Care Health from an “outperform” rating to a “market perform” rating in a report on Tuesday. Finally, Zacks Research upgraded Option Care Health from a “strong sell” rating to a “hold” rating in a research report on Monday, July 6th. Two research analysts have rated the stock with a Buy rating and fourteen have given a Hold rating to the stock. According to MarketBeat.com, Option Care Health currently has a consensus rating of “Hold” and a consensus target price of $29.17.

Option Care Health Stock Up 0.1%

Option Care Health stock opened at $31.07 on Wednesday. The stock has a market cap of $4.65 billion, a PE ratio of 23.36, a price-to-earnings-growth ratio of 1.89 and a beta of 0.58. The company has a debt-to-equity ratio of 0.91, a quick ratio of 0.98 and a current ratio of 1.47. The stock has a fifty day moving average of $24.25 and a 200 day moving average of $23.64. Option Care Health has a one year low of $18.01 and a one year high of $36.80.

Option Care Health (NASDAQ:OPCH) last released its quarterly earnings results on Wednesday, July 29th. The company reported $0.45 EPS for the quarter, beating the consensus estimate of $0.43 by $0.02. Option Care Health had a net margin of 3.68% and a return on equity of 18.74%. The firm had revenue of $1.44 billion during the quarter, compared to analyst estimates of $1.42 billion. During the same quarter in the prior year, the firm earned $0.41 EPS. The business’s revenue for the quarter was up 1.9% compared to the same quarter last year. Option Care Health has set its FY 2026 guidance at 1.850-1.920 EPS. As a group, sell-side analysts predict that Option Care Health will post 1.70 EPS for the current year.

Institutional Trading of Option Care Health

A number of hedge funds and other institutional investors have recently modified their holdings of OPCH. Sumitomo Mitsui Trust Group Inc. purchased a new stake in shares of Option Care Health during the first quarter worth about $70,287,000. Van Berkom & Associates Inc. purchased a new position in Option Care Health in the 1st quarter worth approximately $42,739,000. Bank of New York Mellon Corp purchased a new position in Option Care Health in the 2nd quarter worth approximately $19,600,000. Southpoint Capital Advisors LP boosted its stake in Option Care Health by 20.0% in the 1st quarter. Southpoint Capital Advisors LP now owns 3,600,000 shares of the company’s stock worth $96,912,000 after purchasing an additional 600,000 shares during the period. Finally, Squarepoint Ops LLC boosted its stake in Option Care Health by 234.1% in the 2nd quarter. Squarepoint Ops LLC now owns 434,408 shares of the company’s stock worth $9,110,000 after purchasing an additional 304,376 shares during the period. 98.05% of the stock is owned by hedge funds and other institutional investors.

Key Stories Impacting Option Care Health

Here are the key news stories impacting Option Care Health this week:

• Positive Sentiment: The proposed CD&R and McKesson buyout provides a clear cash value of $32.05 per share and represents a substantial premium to Option Care Health’s pre-deal trading levels. Option Care Health agrees to $32.05 buyout by CD&R and McKesson
• Positive Sentiment: One analysis argues that Option Care Health may still be undervalued despite the $5.8 billion transaction, supporting the view that the offer could be attractive relative to the company’s underlying business value. Option Care Health stock may be undervalued despite the $5.8 billion buyout
• Neutral Sentiment: JPMorgan reaffirmed a “Neutral” rating, indicating limited expected upside beyond the announced offer price and a focus on deal completion rather than ongoing operating growth. JPMorgan reaffirms neutral rating
• Neutral Sentiment: Analyst price-target coverage remains relevant mainly for gauging the spread to the $32.05 cash consideration, as the pending acquisition limits the importance of standalone valuation targets. Option Care Health analyst price targets
• Negative Sentiment: Several firms have reduced their ratings: Citizens JMP moved to “Hold,” Barrington Research downgraded the stock to “Market Perform,” and Truist cut its rating from “Strong Buy” to “Hold.” The downgrades signal reduced upside after the buyout announcement. Citizens JMP lowers rating to hold Barrington Research downgrade
• Negative Sentiment: Kahn Swick & Foti is investigating whether the $32.05 consideration and sale process were adequate. Such scrutiny could create legal or timing uncertainty, although the investigation does not itself indicate that the transaction will fail. Investor alert regarding the proposed sale

Option Care Health Company Profile

Option Care Health, Inc (NASDAQ: OPCH) is a provider of home and alternate-site infusion services in the United States. The company works with patients, physicians, hospitals, health plans and pharmaceutical manufacturers to deliver and manage infusion therapy outside traditional hospital settings, including in patients’ homes, ambulatory infusion suites and other community-based locations.

Its services include the provision and administration of specialty medications and other infusion therapies for conditions such as infections, immune disorders, chronic diseases and nutritional deficiencies.