Owens & Minor (NYSE:OMI) Trading Down 4.4% – Here’s Why

Owens & Minor, Inc. (NYSE:OMI)’s stock price traded down 4.4% during trading on Thursday . The company traded as low as $9.73 and last traded at $9.65. 241,165 shares were traded during mid-day trading, a decline of 85% from the average session volume of 1,603,606 shares. The stock had previously closed at $10.09.

Wall Street Analyst Weigh In

Several brokerages have recently commented on OMI. JPMorgan Chase & Co. decreased their target price on Owens & Minor from $14.00 to $10.00 and set an “underweight” rating for the company in a research report on Monday, March 10th. Robert W. Baird upped their target price on Owens & Minor from $10.00 to $11.00 and gave the company a “neutral” rating in a report on Monday, March 3rd. Finally, UBS Group cut their price target on Owens & Minor from $25.00 to $13.00 and set a “buy” rating on the stock in a report on Thursday, February 13th. Two research analysts have rated the stock with a sell rating, three have issued a hold rating and two have assigned a buy rating to the company. According to MarketBeat.com, the company presently has a consensus rating of “Hold” and an average target price of $13.75.

Owens & Minor Price Performance

The company has a debt-to-equity ratio of 2.11, a quick ratio of 0.45 and a current ratio of 1.09. The firm has a market capitalization of $696.38 million, a P/E ratio of -13.87, a price-to-earnings-growth ratio of 0.20 and a beta of 0.61. The business has a fifty day moving average of $10.42 and a 200-day moving average of $12.61.

Owens & Minor (NYSE:OMI) last issued its quarterly earnings results on Friday, February 28th. The company reported $0.55 EPS for the quarter, beating analysts’ consensus estimates of $0.53 by $0.02. The company had revenue of $2.70 billion for the quarter, compared to analyst estimates of $2.68 billion. Owens & Minor had a positive return on equity of 14.60% and a negative net margin of 0.46%. The company’s quarterly revenue was up 1.5% compared to the same quarter last year. During the same period last year, the company earned $0.69 earnings per share. On average, sell-side analysts forecast that Owens & Minor, Inc. will post 1.51 EPS for the current fiscal year.

Owens & Minor announced that its board has initiated a share buyback plan on Friday, February 28th that permits the company to buyback $100.00 million in outstanding shares. This buyback authorization permits the company to reacquire up to 13.6% of its stock through open market purchases. Stock buyback plans are usually a sign that the company’s board of directors believes its shares are undervalued.

Insider Buying and Selling

In related news, major shareholder Coliseum Capital Management, L acquired 354,901 shares of the stock in a transaction that occurred on Monday, March 3rd. The shares were purchased at an average cost of $9.19 per share, with a total value of $3,261,540.19. Following the completion of the transaction, the insider now owns 9,824,599 shares of the company’s stock, valued at approximately $90,288,064.81. This trade represents a 3.75 % increase in their position. The purchase was disclosed in a filing with the SEC, which can be accessed through this link. Company insiders own 3.59% of the company’s stock.

Hedge Funds Weigh In On Owens & Minor

A number of hedge funds have recently modified their holdings of the stock. Coliseum Capital Management LLC lifted its holdings in shares of Owens & Minor by 31.3% during the 4th quarter. Coliseum Capital Management LLC now owns 4,785,964 shares of the company’s stock valued at $62,553,000 after buying an additional 1,141,483 shares during the last quarter. Freestone Grove Partners LP bought a new position in shares of Owens & Minor in the 4th quarter valued at approximately $5,125,000. Foundry Partners LLC acquired a new stake in Owens & Minor in the 3rd quarter worth approximately $5,238,000. Charles Schwab Investment Management Inc. boosted its holdings in shares of Owens & Minor by 13.6% during the 4th quarter. Charles Schwab Investment Management Inc. now owns 2,305,043 shares of the company’s stock worth $30,127,000 after buying an additional 276,807 shares during the period. Finally, Deutsche Bank AG grew its stake in Owens & Minor by 77.0% in the 4th quarter. Deutsche Bank AG now owns 495,111 shares of the company’s stock valued at $6,471,000 after buying an additional 215,455 shares during the last quarter. 98.04% of the stock is owned by institutional investors and hedge funds.

Owens & Minor Company Profile

Owens & Minor, Inc is a healthcare solutions company, which engages in the product manufacturing and delivery, home health supply, and perioperative services to support care through the hospital and into the home. It operates through the Products and Healthcare Services, and Patient Direct segments.