Owens & Minor (NYSE:OMI) Stock Price Up 2.7% – Should You Buy?

Owens & Minor, Inc. (NYSE:OMI) shot up 2.7% during trading on Friday . The company traded as high as $8.69 and last traded at $8.73. 377,701 shares were traded during trading, a decline of 63% from the average session volume of 1,011,352 shares. The stock had previously closed at $8.50.

Analyst Ratings Changes

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

Owens & Minor Stock Performance

The firm’s 50 day moving average is $9.84 and its 200 day moving average is $12.37. 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 stock has a market cap of $664.17 million, a P/E ratio of -13.23, a price-to-earnings-growth ratio of 0.20 and a beta of 0.61.

Owens & Minor (NYSE:OMI) last issued its quarterly earnings results on Friday, February 28th. The company reported $0.55 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $0.53 by $0.02. The business had revenue of $2.70 billion for the quarter, compared to the consensus estimate 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 quarterly revenue was up 1.5% on a year-over-year basis. During the same period in the prior year, the firm posted $0.69 earnings per share. Analysts anticipate that Owens & Minor, Inc. will post 1.51 EPS for the current year.

Owens & Minor announced that its Board of Directors has authorized a stock repurchase program on Friday, February 28th that allows the company to repurchase $100.00 million in shares. This repurchase authorization allows the company to reacquire up to 13.6% of its shares through open market purchases. Shares repurchase programs are usually an indication that the company’s board believes its shares are undervalued.

Insider Transactions at Owens & Minor

In related news, major shareholder Coliseum Capital Management, L bought 354,901 shares of the stock in a transaction that occurred on Monday, March 3rd. The stock was bought at an average cost of $9.19 per share, for a total transaction of $3,261,540.19. Following the purchase, the insider now directly 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 ownership of the stock. The purchase was disclosed in a legal filing with the SEC, which is accessible through this hyperlink. Insiders own 3.59% of the company’s stock.

Institutional Inflows and Outflows

A number of hedge funds have recently bought and sold shares of the stock. Coliseum Capital Management LLC lifted its stake in shares of Owens & Minor by 31.3% during the fourth quarter. Coliseum Capital Management LLC now owns 4,785,964 shares of the company’s stock worth $62,553,000 after buying an additional 1,141,483 shares during the period. Freestone Grove Partners LP purchased a new position in Owens & Minor in the 4th quarter worth $5,125,000. Charles Schwab Investment Management Inc. lifted its position in 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 acquiring an additional 276,807 shares during the period. Deutsche Bank AG grew its stake in Owens & Minor by 77.0% during the 4th quarter. Deutsche Bank AG now owns 495,111 shares of the company’s stock valued at $6,471,000 after purchasing an additional 215,455 shares during the last quarter. Finally, Norges Bank acquired a new position in shares of Owens & Minor in the fourth quarter valued at about $2,465,000. Institutional investors and hedge funds own 98.04% of the company’s stock.

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.