Bausch Health Stock Reverses Lower After Earnings

The shares of Bausch Health Companies Inc (NYSE:BHC) were higher out of the gate today, after the drugmaker reported fourth-quarter revenue that surpassed analysts' expectations. The pharmaceutical concern also issued stronger-than-expected full-year revenue guidance, and said it will focus on important launches, including its "Significant Seven" products. Stifel called the report the "first demonstration of potential growth since 2015," back when the company was Valeant Pharmaceuticals. However, BHC shares have since turned lower, down 4% to trade at $24.17.

Prior to today, BHC stock was rallying off its eight-month low, and is still up almost 40% since dropping to $17.20 in late December. The equity has run into a wall around the $26 level, which has acted as a ceiling for the stock of late. What's more, BHC shares today are set to end beneath their 20-day moving average for the first time since Jan. 3.

In light of the security's surge in 2019, most analysts are optimistic. Eight consider BHC worthy of a "buy" or better rating, compared to four with tepid "hold" or "strong sell" opinions.

Options traders have been unusually bullish over the security as well. Ahead of earnings, BHC's Schaeffer's put/call open interest ratio (SOIR) of 0.68 sat in the lowest percentile of its annual range, suggesting that short-term option players hadn't been more call-biased during the past 12 months.