Owens & Minor (NYSE:OMI) Shares Gap Up After Strong Earnings

Owens & Minor, Inc. (NYSE:OMI) shares gapped up prior to trading on Friday following a stronger than expected earnings report. The stock had previously closed at $6.89, but opened at $7.74. Owens & Minor shares last traded at $8.70, with a volume of 1,150,280 shares.

The company reported $0.55 EPS for the quarter, beating analysts’ consensus estimates of $0.53 by $0.02. The business had revenue of $2.70 billion during the quarter, compared to analysts’ expectations of $2.68 billion. Owens & Minor had a positive return on equity of 14.60% and a negative net margin of 0.46%. The business’s revenue was up 1.5% compared to the same quarter last year. During the same period in the previous year, the business earned $0.69 earnings per share.

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

Wall Street Analyst Weigh In

A number of analysts have recently issued reports on the company. Citigroup lowered their price target on Owens & Minor from $21.00 to $18.50 and set a “buy” rating on the stock in a research note on Tuesday, November 5th. Robert W. Baird lowered their price target on Owens & Minor from $14.00 to $10.00 and set a “neutral” rating on the stock in a research note on Tuesday. UBS Group lowered their price target on Owens & Minor from $25.00 to $13.00 and set a “buy” rating on the stock in a research note on Thursday, February 13th. Finally, Barclays lowered their price target on Owens & Minor from $18.00 to $14.00 and set an “equal weight” rating on the stock in a research note on Tuesday, November 5th. Two equities research analysts have rated the stock with a sell rating, three have given a hold rating and two have issued a buy rating to the stock. Based on data from MarketBeat.com, the stock currently has a consensus rating of “Hold” and an average price target of $14.92.

Institutional Investors Weigh In On Owens & Minor

Institutional investors and hedge funds have recently added to or reduced their stakes in the business. Royce & Associates LP raised its holdings in shares of Owens & Minor by 179.4% in the 3rd quarter. Royce & Associates LP now owns 80,914 shares of the company’s stock valued at $1,270,000 after buying an additional 51,955 shares during the period. FMR LLC raised its holdings in shares of Owens & Minor by 0.8% in the 3rd quarter. FMR LLC now owns 11,564,624 shares of the company’s stock valued at $181,449,000 after buying an additional 90,862 shares during the period. Waldron Private Wealth LLC purchased a new stake in shares of Owens & Minor in the 4th quarter valued at $406,000. JPMorgan Chase & Co. raised its holdings in shares of Owens & Minor by 68.4% in the 3rd quarter. JPMorgan Chase & Co. now owns 376,830 shares of the company’s stock valued at $5,912,000 after buying an additional 152,999 shares during the period. Finally, Foundry Partners LLC purchased a new stake in shares of Owens & Minor in the 3rd quarter valued at $5,238,000. Hedge funds and other institutional investors own 98.04% of the company’s stock.

Owens & Minor Price Performance

The company has a current ratio of 1.09, a quick ratio of 0.45 and a debt-to-equity ratio of 2.11. The stock has a market cap of $736.78 million, a PE ratio of -14.70, a P/E/G ratio of 0.20 and a beta of 0.48. The company has a fifty day moving average of $11.51 and a 200-day moving average of $13.26.

About Owens & Minor

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.