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

Owens & Minor, Inc. (NYSE:OMI) gapped up before the market opened on Friday after the company announced better than expected quarterly earnings. 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 earnings per share for the quarter, beating analysts’ consensus estimates of $0.53 by $0.02. Owens & Minor had a positive return on equity of 14.60% and a negative net margin of 0.46%. The company had revenue of $2.70 billion for the quarter, compared to the consensus estimate of $2.68 billion. During the same quarter last year, the company earned $0.69 earnings per share. The firm’s revenue for the quarter was up 1.5% compared to the same quarter last year.

Owens & Minor announced that its Board of Directors has authorized a share repurchase plan on Friday, February 28th that authorizes the company to buyback $100.00 million in outstanding shares. This buyback authorization authorizes the company to buy up to 13.6% of its shares through open market purchases. Shares buyback plans are usually an indication that the company’s board of directors believes its shares are undervalued.

Wall Street Analyst Weigh In

A number of brokerages recently weighed in on OMI. Robert W. Baird dropped their price objective on Owens & Minor from $14.00 to $10.00 and set a “neutral” rating on the stock in a research report on Tuesday. UBS Group lowered their price target on Owens & Minor from $25.00 to $13.00 and set a “buy” rating for the company in a report on Thursday, February 13th. Barclays lowered their price target on Owens & Minor from $18.00 to $14.00 and set an “equal weight” rating for the company in a report on Tuesday, November 5th. Finally, Citigroup lowered their price target on 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 assigned a hold rating and two have assigned a buy rating to the stock. According to data from MarketBeat, the stock presently has an average rating of “Hold” and an average price target of $14.92.

Institutional Inflows and Outflows

Several institutional investors have recently modified their holdings of OMI. Blue Trust Inc. raised its position in Owens & Minor by 176.8% during the third quarter. Blue Trust Inc. now owns 2,787 shares of the company’s stock valued at $44,000 after acquiring an additional 1,780 shares in the last quarter. Allspring Global Investments Holdings LLC raised its position in Owens & Minor by 383.9% during the third quarter. Allspring Global Investments Holdings LLC now owns 29,376 shares of the company’s stock valued at $461,000 after acquiring an additional 23,305 shares in the last quarter. Wolverine Asset Management LLC raised its position in Owens & Minor by 21.1% during the third quarter. Wolverine Asset Management LLC now owns 166,430 shares of the company’s stock valued at $2,611,000 after acquiring an additional 29,000 shares in the last quarter. Victory Capital Management Inc. raised its position in Owens & Minor by 19.2% during the third quarter. Victory Capital Management Inc. now owns 153,416 shares of the company’s stock valued at $2,407,000 after acquiring an additional 24,722 shares in the last quarter. Finally, Royce & Associates LP raised its position in Owens & Minor by 179.4% during the third quarter. Royce & Associates LP now owns 80,914 shares of the company’s stock valued at $1,270,000 after acquiring an additional 51,955 shares in the last quarter. 98.04% of the stock is currently owned by hedge funds and other institutional investors.

Owens & Minor Price Performance

The firm has a market capitalization of $736.78 million, a PE ratio of -14.70, a PEG ratio of 0.20 and a beta of 0.48. The stock has a 50-day moving average price of $11.51 and a 200 day moving average price of $13.26. The company has a quick ratio of 0.45, a current ratio of 1.09 and a debt-to-equity ratio of 2.11.

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.