Owens & Minor (NYSE:OMI) Shares Gap Up Following Earnings Beat

Owens & Minor, Inc. (NYSE:OMI) gapped up prior to trading on Friday following a better than expected earnings announcement. 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 trading hands.

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

Owens & Minor announced that its board has approved a share repurchase program 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 programs are often an indication that the company’s management believes its shares are undervalued.

Analyst Upgrades and Downgrades

A number of analysts have recently issued reports on OMI shares. Robert W. Baird reduced their price objective on shares of Owens & Minor from $14.00 to $10.00 and set a “neutral” rating for the company in a research note on Tuesday, February 25th. Barclays cut their target price on Owens & Minor from $18.00 to $14.00 and set an “equal weight” rating for the company in a research report on Tuesday, November 5th. 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 report on Thursday, February 13th. Finally, Citigroup cut their price objective on shares of Owens & Minor from $21.00 to $18.50 and set a “buy” rating for the company in a report on Tuesday, November 5th. Two investment analysts have rated the stock with a sell rating, three have given a hold rating and two have issued a buy rating to the company’s stock. According to MarketBeat.com, the company currently has a consensus rating of “Hold” and a consensus price target of $14.92.

Institutional Trading of Owens & Minor

A number of large investors have recently added to or reduced their stakes in the company. Royce & Associates LP grew its holdings in shares of Owens & Minor by 179.4% in the third quarter. Royce & Associates LP now owns 80,914 shares of the company’s stock valued at $1,270,000 after purchasing an additional 51,955 shares in the last quarter. FMR LLC grew its stake 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 worth $181,449,000 after buying an additional 90,862 shares in the last quarter. Waldron Private Wealth LLC bought a new stake in shares of Owens & Minor in the 4th quarter worth about $406,000. JPMorgan Chase & Co. raised its position in shares of Owens & Minor by 68.4% during 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 in the last quarter. Finally, Foundry Partners LLC bought a new position in shares of Owens & Minor in the 3rd quarter valued at about $5,238,000. Institutional investors own 98.04% of the company’s stock.

Owens & Minor Trading Up 38.7 %

The company has a 50-day moving average of $11.51 and a 200 day moving average of $13.24. The company has a debt-to-equity ratio of 2.11, a current ratio of 1.09 and a quick ratio of 0.45. The company has a market cap of $736.78 million, a PE ratio of -14.70, a price-to-earnings-growth ratio of 0.20 and a beta of 0.48.

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.