Bausch Health Spinoff Sends Stock Higher

The company also disclosed a $2.76 billion revenue jump

Digital Content Manager
Jan 14, 2022 at 10:14 AM
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Bausch Health Companies Inc (NYSE:BHC) just said that its eye-care products unit Bausch + Lomb filed to go public on Thursday on both U.S. and Canadian exchanges via an initial public offering (IPO). Bausch Health also disclosed a $2.76 billion jump in revenue in the last nine months ended on Sept. 30, 2021. At last check, BHC was up 2.4% at $27.40. 

After a brief break below the trendline, it looks like Bausch Health stock has found support at its 320-day moving average, though a ceiling at the $28 level is still looming just above as potential pressure on the charts. The equity just recently toppled its year-over-year breakeven, sporting a slim 1.3% lead. 

While most analysts are optimistic on BHC, there's still room for upgrades. Of the seven in coverage, two consider the stock a "hold" or worse. Meanwhile, the 12-month consensus price target of $35.73 is a 33% premium to current levels. 

Options traders are likely cheering today's news. At the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), BHC sports a 10-day call/put volume ratio of 8.82, which stands higher than 87% of readings from the past year. This means options traders are picking up calls at a much quicker-than-usual clip recently. 

 

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