Bausch Health Companies Inc. (BHC) can make a big difference with a little luck

Bausch Health Companies Inc. (NYSE: BHC) stock jumped 2.32% on Tuesday to $8.37 against a previous-day closing price of $8.18. With 3.27 million shares changed hands, the volume of the stock remained lighter than its average volume of 5.3 million shares. During the session, the Drug Manufacturers – Specialty & Generic company that operates in wider Healthcare sector, reached to the highest price of $8.48 whereas the lowest price it dropped to was $8.10. The 52-week range on BHC shows that it touched its highest point at $26.39 and its lowest point at $4.00 during that stretch. It currently has a 1-year price target of $12.00. Beta for the stock currently stands at 1.03.

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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 up-trending over the past week, with a rise of 8.14%, but this was up by 21.13% over a month. Three-month performance surged to 24.55% while six-month performance fell -5.32%. The stock lost -66.60% in the past year, while it has gained 33.28% so far this year. A look at the trailing 12-month EPS for BHC yields 0.70 with Next year EPS estimates of 3.54. For the next quarter, that number is 0.91. This implies an EPS growth rate of -67.40% for this year and 18.57% for next year. EPS is expected to grow by 2.60% 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, 362.50 million BHC shares are outstanding with a float of 344.64 million shares on hand for trading. On Oct 13, 2022, short shares totaled 28.0 million, which was 7.74% higher than short shares on Sep 14, 2022. In addition to Mr. Thomas J. Appio as the firm’s CEO & Director, Mr. Thomas G. Vadaketh serves as its Exec. VP & CFO.

Institutional Ownership:

Through their ownership of 70.20% of BHC’s outstanding shares, institutional investors have majority control over the company. Other institutions hold 54.80% of BHC, in contrast to 14.59% held by mutual funds. Shares owned by individuals account for 13.59%. As the largest shareholder in BHC with 9.60% 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 26,439,035 shares, controlling over 7.31% of the firm’s shares. Nomura Securities Co., Ltd. is the third largest shareholder in BHC, holding 16,488,751 shares or 4.56% stake. With a 4.14% stake in BHC, the Franklin Income Fund is the largest stakeholder. A total of 15,000,000 shares are owned by the mutual fund manager. The Vanguard Total International Stoc, which owns about 1.17% of BHC stock, is the second-largest Mutual Fund holder. It holds 4,244,693 shares valued at 26.66 million. Government Pension Fund – Global holds 0.92% of the stake in BHC, owning 3,322,032 shares worth 20.86 million.


Analysts Ratings:

Reading analyst opinions is an effective way to decide where to invest, and there are several opinions available for BHC since 10 analysts follow the stock currently. There are 2 analysts who recommend BUY ratings, while 0 suggest SELL ratings. Of the remaining analysts, 7 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 $35.00 and a low target of $6.00, the average target price over the next 12 months is $12.00. Based on these targets, BHC could surge 318.16% to reach the target high and fall by -28.32% to reach the target low. Reaching the average price target will result in a growth of 43.37% 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 02/21/2024. Analysts have provided yearly estimates in a range of $3.14 being high and $2.77 being low. For BHC, this leads to a yearly average estimate of $2.99. The earnings surprise of a firm occurs when the actual results change from the consensus earnings estimate. Bausch Health Companies Inc. surprised analysts by -$0.05 when it reported $0.79 EPS against a consensus estimate of $0.84. The surprise factor in the prior quarter was -$0.35. Based on analyst estimates, the high estimate for the next quarter is $1.11 and the low estimate is $0.74. The average estimate for the next quarter is thus $0.95.

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