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.
Institutional Ownership:
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.
Analysts Ratings:
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.
