Owens & Minor, Inc. (OMI) Stock: Is This Service Sector Stock Worth Your Attention?

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Owens & Minor, Inc. (OMI) is making a move down in the market in today’s trading session. The stock, focused on the service sector, is presently trading at $6.92 after tumbling -8.34% so far today. In terms of service companies, there are several factors that have the ability to cause movement in the market. One of the most common is news. Here are the recent trending headlines surrounding OMI:

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Oct-30-19 10:33AM Analysts Estimate Owens & Minor (OMI) to Report a Decline in Earnings: What to Look Out for
Oct-29-19 05:20PM Owens & Minor Will Report Third Quarter 2019 Financial Results on Wednesday, November 6, 2019
04:26PM Here’s Why You Should Add ResMed (RMD) to Your Portfolio
Oct-28-19 11:24AM Myriad Genetics Test to Identify Cancer Patients Gets FDA Nod
Oct-24-19 10:26AM LabCorp (LH) Q3 Earnings Surpass Estimates, Tapers View

Nonetheless, when making a decision to invest, investors should look into far more than news, especially in the ever incredibly complex service space. Here’s what’s happening with Owens & Minor, Inc..

The Performance That OMI Investors Have Experienced

Although a move toward the top in a single session, like what we’re seeing from Owens & Minor, Inc. might lead to fear in some investors, a single session move by itself should not be the reason for a decision to, or not to, buy a company’s stock. It’s generally important to look into trends beyond a single trading session. When it comes to OMI, here are the movements that investors have experienced:

  • Past 7 Days – In the last week, OMI has seen a change in price in the amount of -3.89%.
  • Past Month – The monthly returns from Owens & Minor, Inc. works out to 20.14%.
  • Quarterly – In the past three months, the company has produced a ROI of 145.39%
  • Past 6 Months – Throughout the last six months, we have seen a performance that works out to 94.38% from the stock.
  • Year To Date – Since the open of this year OMI has generated a return on investment of 9.32%.
  • Full Year – Finally, throughout the past full year, we have seen a change amounting to -49.53% from OMI. Over this period, the stock has traded at a high price of -51.44% and a low of 184.77%.

Ratios Worth Paying Attention To

Digging into a few key ratios associated with a company generally gives investors a view of how dangerous and/or rewarding a pick might be. Here are some of the key ratios to think about when digging into OMI.

Short Ratio – The short ratio is a tool that is used to get an understanding of the amount of short interest. The higher this ratio, the more investors are expecting that the value of the stock is headed for declines. Throughout the sector, strong service stocks can come with a lower short ratio. On the other hand, we also tend to see quite a few short squeezes in the space. Nonetheless, with regard to Owens & Minor, Inc., it’s short ratio comes to 5.42.

Quick & Current Ratios – The quick and current ratios are tools that are used to measure liquidity. Essentially, they measure the company’s abilities to pay its debts when they mature with only current assets or quick assets. do have great current and quick ratios. In terms of OMI, the quick and current ratios come to 0.80 and 1.70 respectively.  

Book To Share Value – The book to share value compares the book value of assets owned by the company to the share price. In this case, that ratio is 8.31.

Cash To Share Value – The cash to share value comparison compares the total amount of cash the company has on hand to the price of shares. As it relates to OMI, the cash to share value ratio comes to 1.45.

Moves From Big Money Players

An interesting fact I’ve learned so far in my brief time alive, or somewhat alive has been that smart money tends to follow big money. In general, investors that are trying to keep the risk down will keep their eyes on trades made by institutions and insiders of the company. So, is big money interested as it relates to OMI? Here’s the scoop:

  • Institutional Investors – At the moment, institutional investors own 88.80% of OMI. However, it is important to consider that institutional ownership has seen a move in the amount of -0.90% over the last 3 months.
  • Insiders – As far as insiders go, insiders of the company currently hold 0.90% of Owens & Minor, Inc.. Their ownership of the company has moved 0.00% in the last quarter.

What Analysts Think About Owens & Minor, Inc.

While it’s never a good idea to unknowingly follow the opinions of analysts, it is a smart idea to consider their opinions in order to validate your own thoughts when it comes to making an investment decision in the service industry. Below you’ll find the most recent moves that we have seen from analysts with regard to OMI.

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Sep-06-19 Reiterated BofA/Merrill Neutral $4 → $7.50
Apr-10-19 Reiterated BofA/Merrill Neutral $7 → $4.50
Jan-17-19 Initiated UBS Neutral $8
Nov-01-18 Reiterated Barclays Underweight $12 → $8
Oct-31-18 Downgrade BofA/Merrill Buy → Neutral

Earnings

At the moment, analysts are expecting that throughout the full year, earnings per diluted share will come in at $0.80. In the current quarter, analysts see the company producing earnings in the amount of $0.19. Over the last 5 years, OMI has generated revenue in the amount of $1.60% with earnings coming in at -43.80%. On a quarter over quarter basis, earnings have seen movement of 94.30% and revenue has seen movement of 1.10%.

What’s Going On With Share Counts?

Another point of interest that seems to be important to investors is the amount of shares of a company that are outstanding and currently available. At the moment, there are 62.95M shares of Owens & Minor, Inc. outstanding. Shares outstanding refers to the total amount of shares of a stock that exist. As far as the float goes, or the amount of shares that are actually available on the retail market, OMI has a float of 60.71M.

It’s also important to look at the short percentage of the float. Think about it, if a high percentage of the float is shorted, the overall opinion in the market is that the equity is going to lose value. As far as it relates to OMI, the percentage of the float that is shorted currently sits at 15.89%. In general, high short percent of the float is any percentage over 40%. However, I’ve calculated that a short ratio over 26% is usually a risky play.

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