Is Bausch Health Companies Inc. (NYSE: BHC) Back In The Buying Zone?

DE Stock
DE Stock

Paulson & Co., Inc. recently announced the acquisition of new stake in Bausch Health Companies Inc. (NYSE:BHC). The institutional investor has increased its shareholding in the Healthcare company by 23.99% to 25.84 million shares with purchase of 5.0 million shares. This fresh investment now brings its stake to 7.28% valued currently at $472.08 million. In addition, T. Rowe Price Associates, Inc. (I.. raised its holdings by 6.27 million to 8.78 million shares. And Connor, Clark & Lunn Investment M.. has lifted its position by 18.15% or 0.83 million shares – to 5.39 million shares.

With over 5.4 million Bausch Health Companies Inc. (BHC) shares trading Tuesday and a closing price of $16.19 on the day, the dollar volume was approximately $87.44 million. The shares have shown a negative weekly performance of -4.48% and its price on 09/01/20 lost nearly -2.59%. Currently, there are 355.30M common shares owned by the public and among those 347.77M shares have been available to trade.

An analysis of what Wall Street brokers have to say about the expected price targets for this stock gives us this picture: 17 analysts who have offered their price forecasts for BHC have a consensus price objective of $26.75. The analysts have set the share’s price value over the next 12 months at a high of $50.00 and a low of $16.00 should the stock experience a downside. Incidentally, analysts’ outlook for the Bausch Health Companies Inc. stock is 2.20 for the next 12 months. The average price target is 39.11% above its last price level and an upside to the estimated low will see the stock lose -1.19% over that period. But an upside of 67.62% will see the stock hit the forecast high price target while mean target price for the stock is $26.00.

Insiders at the company have transacted a total of 79 times over the past 12 months, according to data filed with the U.S. Securities and Exchange Commission (SEC). 53 of these insider trades were purchases, accounting for 4,992,072 shares. Insider sales of the common stock occurred on 26 occasions, with total insider shares sold totaling 1,070,574 shares.

The top 3 mutual fund holders in Bausch Health Companies Inc. are Fidelity Canadian Growth Company, Vanguard Total International Stoc, and T Rowe Price Value Fund. Fidelity Canadian Growth Company owns 10.41 million shares of the company’s stock, all valued at over $190.15 million. The company sold -2.35 million shares recently to bring their total holdings to about 2.93% of the shares outstanding. Vanguard Total International Stoc sold 98062.0 shares to see its total holdings shrink to 5.27 million shares valued at over $96.37 million and representing 1.49% of the shares outstanding. T Rowe Price Value Fund bought 3.16 million shares to bring its total holdings to over 4.46 million shares at a value of $81.57 million. T Rowe Price Value Fund now owns shares totaling to 1.26% of the shares outstanding.

Shares of Bausch Health Companies Inc. (NYSE: BHC) opened at $16.68, up $0.06 from a prior closing price of $16.62. However, the script later closed the day at $16.19, down -2.59%. The company’s stock has a 5-day price change of -4.48% and -15.24% over the past three months. BHC shares are trading -45.89% year to date (YTD), with the 12-month market performance down to -24.87% lower. It has a 12-month low price of $11.15 and touched a high of $31.97 over the same period. Currently, 5.4 million shares have been traded, compared to an average intraday trading volume of 4.47 million shares. The stock is trading above its simple moving averages at the SMA20, SMA50, and SMA200, as the current price level is off by -7.78%, -9.80%, and -24.71% respectively.

Institutional ownership of Bausch Health Companies Inc. (NYSE: BHC) shares accounts for 66.80% of the company’s 355.30M shares outstanding. Mutual fund holders own 24.04%, while other institutional holders and individual stakeholders account for 44.12% and 13.70% respectively.

It has a market capitalization of $5.77B and a beta (3y monthly) value of 1.16. The earnings-per-share (ttm) stands at -$5.79. Price movements for the stock have been influenced by the stock’s volatility, which stands at 3.23% over the week and 4.53% over the month.

Analysts forecast that Bausch Health Companies Inc. (BHC) will achieve an EPS of $0.96 for the current quarter, $1.27 for the next quarter and $4.41 for 2021. The lowest estimate earnings-per-share for the quarter is $0.87 while analysts give the company a high EPS estimate of $1.07. Comparatively, EPS for the current quarter was $1.19 a year ago. Earnings per share for the fiscal year are expected to increase by 57.00%, and 22.13% over the next financial year. EPS should grow at an annualized rate of 2.00% over the next five years, compared to -31.70% over the past 5-year period.

If you are looking to buy this stock, then you may note that the average analyst recommendation by 17 brokerage firm advisors rate Bausch Health Companies Inc. (BHC) as a “Moderate Buy” at a consensus score of 2.20. Specifically, 10 Wall Street analysts polled rate the stock as a buy, while 5 of the 17 advise that investors “hold,” and 0 rated it as a “Sell.”

Looking at the support for the BHC, a number of firms have released research notes about the stock. H.C. Wainwright stated their Buy rating for the stock in a research note on August 24, 2020, with the firm’s price target at $64-$50. H.C. Wainwright coverage for the Bausch Health Companies Inc. (BHC) stock in a research note released on August 24, 2020 offered a Buy rating with a price target of $64. H.C. Wainwright was of a view on June 17, 2020 that the stock is Buy, while Citigroup gave the stock Buy rating on April 24, 2020, issuing a price target of $30. Morgan Stanley on their part issued Equal-Weight rating on April 02, 2020.


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