Omada Health, Inc. (NASDAQ:OMDA) Receives Consensus Recommendation of “Moderate Buy” from Analysts

Omada Health, Inc. (NASDAQ:OMDA) has received a consensus rating of “Moderate Buy” from the fourteen brokerages that are presently covering the stock, MarketBeat.com reports. One equities research analyst has rated the stock with a sell rating, two have issued a hold rating and eleven have given a buy rating to the company. The average twelve-month price objective among brokers that have updated their coverage on the stock in the last year is $25.75.

A number of equities research analysts have recently commented on OMDA shares. Barclays raised their target price on Omada Health from $20.00 to $25.00 and gave the company an “overweight” rating in a research report on Monday, August 3rd. Wall Street Zen upgraded Omada Health from a “hold” rating to a “buy” rating in a research report on Saturday, August 8th. Wells Fargo & Company upped their target price on Omada Health from $17.00 to $18.00 and gave the stock an “equal weight” rating in a research note on Friday, May 8th. The Goldman Sachs Group reissued a “buy” rating on shares of Omada Health in a research note on Friday, May 8th. Finally, Robert W. Baird increased their price objective on shares of Omada Health from $15.00 to $25.00 and gave the company a “neutral” rating in a report on Wednesday.

Key Omada Health News

Here are the key news stories impacting Omada Health this week:

• Positive Sentiment: Q2 results showed improving profitability and growth. Omada reported earnings of $0.08 per share versus the consensus estimate of a $0.02 loss, while revenue of approximately $87.8 million exceeded expectations of $80.9 million. The results suggest that the company’s digital chronic-care business is converting revenue growth into earnings. Omada Health: Q2 Shows More Evidence Of Growth Converting Into Earnings
• Positive Sentiment: Analyst price targets continue to rise. Robert W. Baird lifted its target from $15 to $25 while maintaining a neutral rating. Other recent targets include $27 from Citizens JMP and $35 from BTIG, contributing to a consensus “Moderate Buy” rating and an average target of $25.67.
• Neutral Sentiment: Baird’s neutral rating signals valuation concerns. Although the higher target implies additional upside, the firm’s hold-equivalent rating suggests that much of Omada’s improved earnings outlook may already be reflected in the stock’s valuation.
• Negative Sentiment: Multiple senior executives sold shares. CEO Sean Duffy sold a combined 21,570 shares, CFO Steven Cook sold 16,842 shares, President Wei-Li Shao sold 8,866 shares, and Chief Accounting Officer Craig Gracey sold 1,042 shares. The transactions totaled roughly $1.16 million and occurred at prices near $25. While insider sales may reflect personal or equity-compensation planning, the concentration of selling can weigh on sentiment because it reduces management ownership.

Omada Health Price Performance

OMDA opened at $23.84 on Thursday. The firm has a fifty day moving average price of $20.74 and a 200 day moving average price of $16.38. Omada Health has a 1 year low of $10.28 and a 1 year high of $26.92. The stock has a market cap of $1.46 billion, a P/E ratio of 476.80 and a beta of 1.73.

Omada Health (NASDAQ:OMDA) last released its quarterly earnings results on Thursday, August 6th. The company reported $0.08 EPS for the quarter, beating the consensus estimate of ($0.02) by $0.10. Omada Health had a net margin of 1.39% and a return on equity of 2.67%. The company had revenue of $87.83 million for the quarter, compared to analyst estimates of $80.93 million. Equities analysts expect that Omada Health will post -0.01 EPS for the current year.

Insider Activity

In other Omada Health news, CEO Sean P. Duffy sold 25,886 shares of the business’s stock in a transaction that occurred on Wednesday, July 1st. The stock was sold at an average price of $22.68, for a total transaction of $587,094.48. Following the completion of the sale, the chief executive officer directly owned 411,861 shares in the company, valued at approximately $9,341,007.48. The trade was a 5.91% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, CFO Steven L. Cook sold 33,000 shares of the stock in a transaction that occurred on Friday, June 26th. The shares were sold at an average price of $19.89, for a total value of $656,370.00. Following the transaction, the chief financial officer directly owned 133,359 shares of the company’s stock, valued at $2,652,510.51. The trade was a 19.84% decrease in their position. The SEC filing for this sale provides additional information. In the last 90 days, insiders have sold 254,726 shares of company stock valued at $5,370,496. Insiders own 6.38% of the company’s stock.

Institutional Trading of Omada Health

Large investors have recently made changes to their positions in the company. Perceptive Advisors LLC acquired a new position in Omada Health in the 2nd quarter valued at $44,402,000. BlackRock Inc. acquired a new stake in Omada Health during the 2nd quarter worth $48,775,000. Millennium Management LLC grew its holdings in shares of Omada Health by 1,195.0% during the fourth quarter. Millennium Management LLC now owns 2,272,168 shares of the company’s stock worth $35,855,000 after buying an additional 2,096,705 shares in the last quarter. Jefferies Financial Group Inc. purchased a new stake in shares of Omada Health during the fourth quarter worth $16,948,000. Finally, SG Americas Securities LLC acquired a new stake in shares of Omada Health in the first quarter valued at about $10,401,000.

About Omada Health

Omada Health is a digital health company that specializes in the prevention and management of chronic conditions through personalized, technology-driven programs. The company’s platform combines data analytics, behavioral science and human coaching to support individuals at risk for or living with conditions such as prediabetes, type 2 diabetes, hypertension and musculoskeletal disorders. Participants access the program via a mobile app or web portal, where they receive tailored curriculum, feedback on health metrics and ongoing virtual coaching.

In addition to its core disease-management offerings, Omada Health has expanded its services to include mental health support and digital therapeutics for weight management.