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OPCH
LONGINSIDER BUYOPTION CARE HEALTH INC
Funds
3
Score
4.50
vs SPY
-38.8%
Stock return (since Q-end)
-22.5%
SPY return (since Q-end)
+16.3%
Current price
$20.87
News Summary
NegativeOption Care Health reported Q1 2026 results with a revenue miss ($1.35B vs. ~$1.4B expected) and slashed full-year 2026 guidance by 3.75% just 65 days after reaffirming prior guidance, citing material CID portfolio headwinds that nearly doubled from $25-35M to $55M. The stock crashed 26.4% on earnings and is down 37.1% YTD, triggering widespread analyst downgrades and a securities law investigation focused on allegedly false/misleading statements.
Red flags
- •Revenue missed consensus by ~$50M (~3.6%); Q1 net income down 3.0% YoY despite modest revenue growth
- •Full-year 2026 guidance cut 3.75% (from $5.8-6.0B to $5.675-5.775B) just 65 days after reaffirmation on Feb 24, 2026 call
- •CID/biosimilar headwind increased to $55M (up from $25-35M guidance) due to lower-than-expected Stelara patient conversions; portfolio headwind jumped from 400 to 600 basis points
- •Gross margin compression to 19.4% reflecting unfavorable mix pressure
- •Negative operating cash flow of $(12.1)M in Q1, indicating cash generation challenges
- •Stock down 37.1% YTD and 44.6% below 52-week high; analyst consensus price target cut 13% to $34.91
- •Six major analyst downgrades post-earnings; Bank of America downgraded from Buy to Neutral
- •Securities law investigation by Schall Law Firm alleging false/misleading statements regarding guidance
- •Adjusted EBITDA guidance down 6.3% YoY in Q1, signaling profitability deterioration despite revenue growth
Funds Buying (3)
| Fund | Manager | Shares Held | ∆ Shares | Position Value | QoQ | Status |
|---|---|---|---|---|---|---|
| Durable Capital Partners | Henry Ellenbogen | 9.0M | +9.0M | $242.0B | — | NEW |
| Point72 | Steve Cohen | 563K | +563K | $15.1B | — | NEW |
| Duquesne Family Office | Stanley Druckenmiller | 1.9M | +1.9M | $50M | — | NEW |
Shares Held and Position Value reflect total quarter-end holdings. ∆ Shares is the change from the prior quarter.
Insider Activity
| Name | Title | Type | Shares | Price | Value | Filed |
|---|---|---|---|---|---|---|
| SULLIVAN TIMOTHY P | — | BUY | 24K | $20.69 | $0.50M | 2026-05-07 |
| KRAEMER HARRY M JANSEN JR | — | BUY | 37K | $21.41 | $0.78M | 2026-05-04 |
| Sethna Meenal | Chief Financial Officer | BUY | 16K | $20.16 | $0.33M | 2026-05-04 |
| RADEMACHER JOHN CHARLES | Chief Executive Officer | BUY | 13K | $21.18 | $0.26M | 2026-05-04 |