Bausch Health Companies Inc. (NYSE: BHC) stock fell -41.24% on Friday to $5.10 against a previous-day closing price of $8.68. With 28.32 million shares changed hands, the volume of the stock remained heavier than its average volume of 7.63 million shares. During the session, the Drug Manufacturers – Specialty & Generic company that operates in wider Healthcare sector, reached to the highest price of $8.75 whereas the lowest price it dropped to was $4.00. The 52-week range on BHC shows that it touched its highest point at $30.01 and its lowest point at $6.88 during that stretch. Beta for the stock currently stands at 1.67.
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Price Performance and Earnings:
Stock performance is one of the indicators that investors use to determine whether they will profit from a stock. The price performance of BHC was down-trending over the past week, with a drop of -43.65%, but this was down by -42.24% over a month. Three-month performance dropped to -75.19% while six-month performance fell -78.61%. The stock lost -82.74% in the past year, while it has lost -81.53% so far this year. A look at the trailing 12-month EPS for BHC yields -1.14 with Next year EPS estimates of 4.61. For the next quarter, that number is 0.93. This implies an EPS growth rate of -67.40% for this year and 9.18% for next year. EPS is expected to grow by 8.70% annually over the next five years; however, over the past five years, the company experienced an annual growth rate of 17.60%.
Float and Shares Shorts:
At present, 360.80 million BHC shares are outstanding with a float of 345.45 million shares on hand for trading. On Apr 28, 2022, short shares totaled 14.57 million, which was 4.03% higher than short shares on Mar 30, 2022. In addition to Mr. Joseph C. Papa as the firm’s Chairman & CEO, Ms. Christina M. Ackermann serves as its Exec. VP, Gen. Counsel & Head of Commercial Operations.
Through their ownership of 73.14% of BHC’s outstanding shares, institutional investors have majority control over the company. Other institutions hold 58.66% of BHC, in contrast to 13.56% held by mutual funds. Shares owned by individuals account for 13.38%. As the largest shareholder in BHC with 9.61% of the stake, Icahn Associates Holding LLC holds 34,721,118 shares worth 34,721,118. A second-largest stockholder of BHC, Paulson & Co., Inc., holds 25,839,035 shares, controlling over 7.15% of the firm’s shares. Nomura Securities Co., Ltd. is the third largest shareholder in BHC, holding 18,373,384 shares or 5.08% stake. With a 1.13% stake in BHC, the Vanguard Total International Stoc is the largest stakeholder. A total of 4,083,254 shares are owned by the mutual fund manager. The Government Pension Fund – Global, which owns about 0.92% of BHC stock, is the second-largest Mutual Fund holder. It holds 3,322,032 shares valued at 27.77 million. Miller Opportunity Trust holds 0.69% of the stake in BHC, owning 2,500,000 shares worth 20.9 million.
Reading analyst opinions is an effective way to decide where to invest, and there are several opinions available for BHC since 9 analysts follow the stock currently. There are 5 analysts who recommend BUY ratings, while 0 suggest SELL ratings. Of the remaining analysts, 3 believe that the stock is worth HOLDING, 0 give it an OVERWEIGHT rating, and 1 thinks that it’s UNDERWEIGHT. In the same way, a target price assigned to a stock can also reveal much about its potential. With BHC analysts setting a high price target of $40.00 and a low target of $7.00, the average target price over the next 12 months is $19.43. Based on these targets, BHC could surge 684.31% to reach the target high and rise by 37.25% to reach the target low. Reaching the average price target will result in a growth of 280.98% from current levels.
EPS: Estimates vs Actual
It is also common to use earnings estimates to evaluate a firm’s growth potential and to determine trading strategy. BHC will report FY 2022 earnings on 02/22/2023. Analysts have provided yearly estimates in a range of $4.81 being high and $3.67 being low. For BHC, this leads to a yearly average estimate of $3.96. The earnings surprise of a firm occurs when the actual results change from the consensus earnings estimate. Bausch Health Companies Inc. surprised analysts by -$0.30 when it reported $0.72 EPS against a consensus estimate of $1.03. The surprise factor in the prior quarter was $0.16. Based on analyst estimates, the high estimate for the next quarter is $1.00 and the low estimate is $0.81. The average estimate for the next quarter is thus $0.91.