Owens & Minor Inc. [NYSE:OMI] prices stumbled -3.44% on Friday.
With a current price of $26.36, OMI is active in the Medical Distribution industry and it looks to be on-track for a five-day run of 17.16%.
In addition, OMI’s high over the last year is $27.44 and the low is $3.63. Over the last two 52 weeks, the company is trading 304.92%, while the S&P 500 is trading 0.87%.
The Bears are coming
Holding a Market Cap of $2.01 billion, Owens & Minor Inc. has seen a trading range over the last year of $3.63-$27.44.
For the last five days, OMI is up from its last closing price. The average shares trading hands each day is 3.34M, with average 10-day volume coming in at 3.97 million.
Using a Force Index Indicator is a good way to look at how strong actual buying and selling pressure is for OMI. When we apply the Elder Force Index to Owens & Minor Inc., we are seeing an Elder Force Indicator number of -1199808.48.
The recent performance of the stock is another area that can tell traders how to proceed. OMI is presenting an interesting case. This can be seen in the Forward P/E ratio, which currently stands at 13.95. Moreover, the company’s enterprise value has gone from $1.99B to $2.13B quarter-over-quarter. This could be an inflection point for the company, but either way we believe you should be adding them to your watchlist.
In the last quarter, OMI made a profit of 269.41 million. Owens & Minor Inc. also saw quarter revenue growth year over year of -2.20%. In addition, the company has operating cash flow of $287.53 million.
Looking at popular technical indicators, the company’s 5-day moving average is 26.04 compared to the 50-day moving average of 18.64. So, we are clearly seeing an upward trajectory here.
The Relative Strength Index or RSI is an indicator ranging between 0 and 100 that traders use to determine if a stock is “overbought” or “oversold.” A strong uptrend tending to reach into the “overbought” status is above 70, while a downward trend will stay around the 30 mark. OMI currently holds a 9-day RSI of 72.50%, while 100-day RSI stands at 63.99%.
Another indicator we believe is worth keeping tabs on is the Moving Average Convergence Divergence or MACD. Similar to the concept of the Force Index — on the basis of price momentum — the MACD gives traders a tool to measure the turning point of a stock even during rapid fluctuations in price. Buy and sell signals are determined by a stock’s relation to the zero line, so if a stock is above a zero line for many weeks it might be a “buy.” On the other hand, if a stock is below the zero line consistently, it might be one to stay away from. Also, if the MACD line reaches a peak and dips, its momentum may be waning. OMI’s 9-day MACD is 1.77 and the company’s 100-day MACD stands at 13.35.
Another area that is important to analyze is insider moves and majority shareholders. While this is not always an error-free way to tell what the future holds for a stock, you can maybe gather important information from reading the tea leaves about who is buying and selling.
The major holders for this stock are 2.56% by insiders and 93.65% by institutions.
Over the last six months, insiders have bought 20,000 with the most recent transaction from Riordan Michael C, Director, with a purchase at price 13.67 per share.
Overall, the recommended rating for OMI is Moderate Buy. Currently, the company has 7 analysts watching the stock, and the average quarterly earnings estimate is 0.67. Quarterly revenue estimates are averaging 2.08B with the high estimate reaching 2.23B and the low at 2.02B.
To review, the current 1-year target estimate is sitting at 21.25, while the current price 26.36. Based on this, we expect some pullback on the stock over time given our above analysis.