Bausch Health Stock Bounces After Earnings

BHL is trying to overcome its 20-day moving average

Deputy Editor
May 6, 2019 at 9:30 AM
facebook twitter linkedin

Canadian-based drugmaker Bausch Health Companies Inc (NYSE:BHC) just posted its first-quarter earnings results with a smaller-than-expected loss of 15 cents per share, though revenue missed slightly. The firm also lifted its 2019 full-year revenue forecast. The stock is 2% higher at $23.90 as a result. 

BHC has pulled back some since hitting its 2019 high of $26.77 on April 9. A familiar area of support near the $23 area has provided some padding on the charts of late, and the equity is still managing a nearly 30% year-to-date gain. Plus, the stock could pop past its 20-day moving average today for the first time since mid-April. 

Analysts are mostly optimistic on the pharma stock, with nine of the 14 giving it a "buy" or better rating. There's room for upgrades, though. Three analysts still see Bausch Health as a "sell" or "strong sell," while two say "hold." The consensus 12-month target price of $30.71, however, is at a healthy 28.5% premium to current levels. 

It looks as if calls have rarely been more popular. BHC's Schaeffer's put/call open interest ratio (SOIR) of 0.38 is higher than only 4% of all other readings for the past year. Echoing this, the security sports a 50-day call/put ratio of 3.21 on the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX) that sits in the 85th percentile of its annual range. This means there has been a healthier-than-usual appetite for bullish bets of late in the options pits. 

If you are not making money with options, you aren’t buying options like this…

There is no options strategy that more perfectly approaches trading the fastest moving and most volatile stocks available in the marketplace than this one. In fact, there is no strategy that better utilizes put options for optimal returns and a real trading edge over other traders in the exact same market. New options traders fail out at an incredible rate without proper trade research, execution timing, and option picking. Capitalize on Schaeffer’s 100+ years of options trading excellence with the most coveted product launch in company history. Don't waste another second... join us right now before the next round of trades are released!

Schaeffer's Investment Research Master Portfolio Trial


Special Offers from Schaeffer's Trading Partners