Why should you buy stock in Bausch Health Companies Inc. (BHC)?

Bausch Health Companies Inc. (NYSE: BHC) is -45.89% lower on its value in year-to-date trading and has touched a low of $11.15 and a high of $31.97 in the current 52-week trading range. The BHC stock was last observed hovering at around $16.62 in the last trading session, with the day’s loss setting it -0.43% off its average median price target of $26.00 for the next 12 months. It is also 67.62% off the consensus price target high of $50.00 offered by 17 analysts, but current levels are -1.19% lower than the price target low of $16.00 for the same period.

Currently trading at $16.19, the stock is -7.78% and -9.80% below its SMA20 and SMA50 respectively. However, with a daily trading volume of 5.4 million and changing -2.59% at the moment leaves the stock -24.71% off its SMA200. BHC registered -24.87% loss for a year compared to 6-month loss of -30.00%. The firm has a 50-day simple moving average (SMA 50) of $17.78 and a 200-day simple moving average (SMA200) of $18.19.

The stock witnessed a -15.37% gain in the last 1 month and extending the period to 3 months gives it a -15.24%, and is -4.48% down over the last 5 days. If we measure the stock’s price variations over the week and the month, we find that the volatility rates stand at 3.23% over the week and 4.53% over the month.

Bausch Health Companies Inc. (BHC) has around 21700 employees, a market worth around $5.77B and $8.11B in sales. Fwd P/E is 3.67. Profit margin for the company is -25.20%. Distance from 52-week low is 45.20% and -49.36% from its 52-week high. The company has generated returns on investments over the last 12 months (-0.70%).

Bausch Health Companies Inc. (BHC) Analyst Forecasts

Analyst recommendations provided by FactSet shows that the consensus forecast for Bausch Health Companies Inc. (BHC) is a “Overweight”. 17 analysts offering their recommendations for the stock have an average rating of 2.20, where 5 rate it as a Hold and 1 think it is a “Overweight”. 10 of the analysts rate the stock as a “Buy”. 0 analysts have rated the stock as a Sell or Underperform.

Bausch Health Companies Inc. is expected to release its quarterly report on 11/10/2020 and quarterly earnings per share for the current quarter are estimated at $0.96 with sales reaching $1.98B over the same period.The EPS is expected to grow by 57.00% this year, but quarterly earnings will post -8.70% year-over-year. Quarterly sales are estimated to shrink -10.40% in year-over-year returns.

Bausch Health Companies Inc. (BHC) Top Institutional Holders

519 institutions hold shares in Bausch Health Companies Inc. (BHC), with 1.96M shares held by insiders accounting for 0.55% while institutional investors hold 67.32% of the company’s shares. The shares outstanding are 355.30M, and float is at 347.77M with Short Float at 5.11%. Institutions hold 66.95% of the Float.

The top institutional shareholder in the company is Paulson & Company, Inc. with over 25.84 million shares valued at $472.6 million. The investor’s holdings represent 7.28% of the BHC Shares outstanding. As of Jun 29, 2020, the second largest holder is FIL LTD with 18.35 million shares valued at $335.63 million to account for 5.17% of the shares outstanding. The other top investors are ValueAct Holdings, L.P. which holds 17.93 million shares representing 5.05% and valued at over $327.97 million, while Glenview Capital Management, LLC holds 4.41% of the shares totaling 15.64 million with a market value of $286.13 million.

Bausch Health Companies Inc. (BHC) Insider Activity

A total of 36 insider transactions have happened at Bausch Health Companies Inc. (BHC) in the last six months, with sales accounting for 10 and purchases happening 26 times. The most recent transaction is an insider purchase by ValueAct Holdings, L.P., the company’s Director. SEC filings show that ValueAct Holdings, L.P. bought 948,353 shares of the company’s common stock on Jun 05 at a price of $19.24 per share for a total of $18.25 million. Following the purchase, the insider now owns 17.93 million shares.

Bausch Health Companies Inc. disclosed in a document filed with the SEC on Jun 05 that ValueAct Holdings, L.P. (Director) sold a total of 948,353 shares of the company’s common stock. The trade occurred on Jun 05 and was made at $19.24 per share for $18.25 million. Following the transaction, the insider now directly holds 0.0 shares of the BHC stock.

Still, SEC filings show that on May 14, Paulson John (Director) acquired 1,628,920 shares at an average price of $15.87 for $25.86 million. The insider now directly holds 25,839,035 shares of Bausch Health Companies Inc. (BHC).