Option Care Health Inc (OPCH)’s Stock Surge: What You Need to Know

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Goldman has recently reduced Option Care Health Inc (OPCH) stock to Neutral rating, as announced on November 4, 2024, according to Finviz. Earlier, on October 31, 2024, Jefferies had reduced the stock from a Buy to Hold, setting a price target of $26 for OPCH stock. BofA Securities also reduced Neutral rating with a price target of $29. Additionally, JMP Securities initiated Mkt Outperform rating on July 16, 2024, with a target price of $36. Jefferies analysts, in their report published on February 27, 2023, also resumed Buy rating for Option Care Health Inc’s stock. Analyst ratings are significant because they provide insights into stock performance expectations, influencing investor decisions and market sentiment.

Option Care Health Inc (OPCH) Stock Trading Recap

On Wednesday, Option Care Health Inc (OPCH) stock saw a modest uptick, ending the day at $23.76 which represents a slight increase of $0.02 or 0.08% from the prior close of $23.74. The stock opened at $23.86 and touched a low of $23.69 during the day, reaching a high of $24.05. The volume of shares traded was 3.42 million exceeding the average volume of 1.91 million.

OPCH Stock Performance and Moving Averages

In recent trading, Option Care Health Inc (OPCH) stock price has shown some volatility, fluctuating 8.59% over the last five trades and -22.10% over the past 30 trades. This represents a notable shift from earlier in the year. Over the last six months, the stock has risen by -20.00%, and it has plunged by -24.93% in the previous three months. Currently, OPCH is trading at 4.48%, -12.51%, and -20.24% relative to its 20-Day, 50-Day, and 200-Day Simple Moving Averages, respectively.

As of the latest trading close, OPCH, a Healthcare sector stock, is trading -31.38% below its 52-week high but remains 11.08% above its 52-week low. The Average True Range (ATR) (14 days) of 0.83 highlights the stock’s average volatility, providing insight into how much the price typically fluctuates. This measure is crucial for understanding potential price swings and assessing overall market risk.

Option Care Health Inc’s Profitability and Valuation Ratios

Option Care Health Inc’s profitability metrics reveal financial health. The company currently boasts an operating margin of 6.69% and a profit margin of 4.37%, with a gross margin of -20.00%. The profit margin, also known as the revenue ratio or gross profit ratio, measures how efficiently a company converts sales into net income; higher margins indicate greater profitability.

In terms of valuation, Option Care Health Inc’s market capitalization stands at $4.04 billion. Market cap represents the total value of all outstanding shares and is a key indicator of a company’s market value. The stock’s price-to-earnings (P/E) ratio is 19.89, assessing the company’s valuation relative to its earnings. The forward P/E ratio, which uses projected earnings for the next financial year, is 17.82. Additionally, the Price-to-Sales Ratio is 0.85, reflecting the market’s valuation of the company’s sales, while the Price-to-Book Ratio is 2.83, comparing the market value to the company’s book value.

Understanding Insider Trading

Investors often prefer to invest in shares held by company insiders, as management is typically more aligned with the company’s success and shareholder interests. Currently, insiders own just 1.16% of Option Care Health Inc (OPCH)’s shares, while financial institutions hold 102.00%.

Notable insider trades include SHAPIRO MICHAEL H., Chief Financial Officer at Option Care Health Inc (OPCH), who sold 23217 shares on Aug 22 ’24, at $30.95 each, totaling $0.72 million. On Aug 21 ’24, BETTEN ELIZABETH QUADROS, Director, sold 47531 shares for $31.09 each, amounting to $1.48 million. Additionally, on Aug 22 ’24, SULLIVAN TIMOTHY P sold 47249 shares at $30.91 each, generating $1.46 million.