Owens & Minor (OMI) Stock Price Down 17.5% Following Weak Earnings

Owens & Minor, Inc. (NYSE:OMI) shares traded down 17.5% during mid-day trading on Wednesday following a dissappointing earnings announcement. The stock traded as low as $6.27 and last traded at $6.55. 9,516,501 shares were traded during mid-day trading, an increase of 491% from the average session volume of 1,609,894 shares. The stock had previously closed at $7.94.

The company reported $0.09 earnings per share for the quarter, missing analysts’ consensus estimates of $0.14 by ($0.05). The firm had revenue of $2.54 billion for the quarter, compared to the consensus estimate of $2.51 billion. Owens & Minor had a negative net margin of 4.44% and a positive return on equity of 8.08%. The firm’s revenue for the quarter was up 6.4% compared to the same quarter last year. During the same quarter in the prior year, the business posted $0.38 earnings per share.

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The company also recently disclosed a quarterly dividend, which will be paid on Friday, March 29th. Shareholders of record on Friday, March 15th will be paid a dividend of $0.0025 per share. The ex-dividend date of this dividend is Thursday, March 14th. This represents a $0.01 dividend on an annualized basis and a yield of 0.15%. Owens & Minor’s dividend payout ratio is currently 26.09%.

A number of analysts have weighed in on the stock. Barclays restated a “sell” rating and set a $5.00 price objective on shares of Owens & Minor in a research note on Thursday. Jefferies Financial Group restated a “hold” rating and set a $7.00 price objective on shares of Owens & Minor in a research note on Thursday. Leerink Swann set a $9.00 price objective on shares of Owens & Minor and gave the company a “hold” rating in a research note on Wednesday, October 31st. Bank of America reduced their price objective on shares of Owens & Minor from $11.00 to $7.00 and set a “neutral” rating for the company in a research note on Thursday, January 3rd. Finally, UBS Group assumed coverage on shares of Owens & Minor in a research note on Thursday, January 17th. They set a “neutral” rating and a $8.00 price objective for the company. Two investment analysts have rated the stock with a sell rating and five have issued a hold rating to the stock. The stock has a consensus rating of “Hold” and an average target price of $7.20.

Large investors have recently added to or reduced their stakes in the business. Canada Pension Plan Investment Board bought a new stake in shares of Owens & Minor in the fourth quarter worth approximately $4,105,000. Dimensional Fund Advisors LP grew its stake in shares of Owens & Minor by 13.3% in the third quarter. Dimensional Fund Advisors LP now owns 4,978,799 shares of the company’s stock worth $82,250,000 after acquiring an additional 585,425 shares during the period. Prescott Group Capital Management L.L.C. bought a new stake in shares of Owens & Minor in the fourth quarter worth approximately $3,476,000. Prudential Financial Inc. grew its stake in shares of Owens & Minor by 294.3% in the fourth quarter. Prudential Financial Inc. now owns 511,920 shares of the company’s stock worth $3,240,000 after acquiring an additional 382,106 shares during the period. Finally, Royce & Associates LP grew its stake in shares of Owens & Minor by 43.1% in the fourth quarter. Royce & Associates LP now owns 1,165,786 shares of the company’s stock worth $7,379,000 after acquiring an additional 351,000 shares during the period. Institutional investors and hedge funds own 91.56% of the company’s stock.

The company has a market capitalization of $494.42 million, a P/E ratio of 5.76, a P/E/G ratio of 1.73 and a beta of 1.77. The company has a current ratio of 1.71, a quick ratio of 0.88 and a debt-to-equity ratio of 2.07.

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About Owens & Minor (NYSE:OMI)

Owens & Minor, Inc, together with its subsidiaries, operates as a healthcare services company in the United States, the United Kingdom, Ireland, France, Germany, and other European countries. It operates through three segments: Domestic, International, and Proprietary Products. The company offers supply chain assistance to the providers of healthcare services; and the manufacturers of healthcare products, supplies, and devices.

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