Is Buying Stock Like Express Scripts Holding Company Good Idea After Today’s Bullish Options Activity?

 Is Buying Stock Like Express Scripts Holding Company Good Idea After Today's Bullish Options Activity?

In today’s session Express Scripts Holding Company (ESRX) registered an unusually high (590) contracts volume of call trades. Someone, most probably a professional was a very active buyer of the November, 2016 call, expecting serious ESRX increase. With 590 contracts traded and 15734 open interest for the Nov, 16 contract, it seems this is a quite bullish bet. The option with symbol: ESRX161118C00070000 closed last at: $1.83 or 5.7% down. About 2.17M shares traded hands. Express Scripts Holding Company (NASDAQ:ESRX) has declined 1.66% since March 14, 2016 and is downtrending. It has underperformed by 7.28% the S&P500.

Analysts await Express Scripts Holding Company (NASDAQ:ESRX) to report earnings on October, 25. They expect $1.74 EPS, up 20.00% or $0.29 from last year’s $1.45 per share. ESRX’s profit will be $1.11 billion for 9.95 P/E if the $1.74 EPS becomes a reality. After $1.57 actual EPS reported by Express Scripts Holding Company for the previous quarter, Wall Street now forecasts 10.83% EPS growth.

Express Scripts Holding Company (NASDAQ:ESRX) Ratings Coverage

Out of 15 analysts covering Express Scripts (NASDAQ:ESRX), 6 rate it a “Buy”, 3 “Sell”, while 6 “Hold”. This means 40% are positive. Express Scripts has been the topic of 22 analyst reports since July 30, 2015 according to StockzIntelligence Inc. The rating was maintained by Leerink Swann on Wednesday, March 23 with “Market Perform”. The stock has “Outperform” rating given by Leerink Swann on Monday, October 5. Bank of America maintained the stock with “Neutral” rating in Tuesday, June 7 report. The rating was downgraded by Morgan Stanley on Monday, June 20 to “Underweight”. Leerink Swann downgraded the shares of ESRX in a report on Tuesday, January 19 to “Market Perform” rating. The stock of Express Scripts Holding Company (NASDAQ:ESRX) earned “Underperform” rating by Bernstein on Thursday, June 16. As per Wednesday, January 13, the company rating was maintained by Mizuho. Morgan Stanley downgraded the shares of ESRX in a report on Thursday, January 21 to “Equal-Weight” rating. The company was upgraded on Monday, April 4 by Cowen & Co. The stock has “Overweight” rating given by Barclays Capital on Wednesday, July 27.

According to Zacks Investment Research, “Express Scripts, Inc. is one of the largest pharmacy benefit management companies in North America. Through facilities in the states and Canada, the company serves thousands of client groups, including managed care organizations, insurance carriers, third-party administrators, employers and union-sponsored benefit plans.”

Insitutional Activity: The institutional sentiment decreased to 0.65 in Q2 2016. Its down 0.15, from 0.8 in 2016Q1. The ratio fall, as 76 funds sold all Express Scripts Holding Company shares owned while 514 reduced positions. 78 funds bought stakes while 304 increased positions. They now own 549.00 million shares or 2.86% less from 565.15 million shares in 2016Q1.
Convergence Prns, a Wisconsin-based fund reported 44,884 shares. Manufacturers Life Company The reported 1.46M shares or 0.17% of all its holdings. Insurance Company Tx last reported 0.34% of its portfolio in the stock. Management reported 1,169 shares or 0.05% of all its holdings. One Mngmt Limited Co has 30,606 shares for 0.81% of their US portfolio. Aberdeen Asset Mgmt Public Limited Com Uk has 0.12% invested in the company for 413,152 shares. Vnbtrust National Association accumulated 50,865 shares or 2.26% of the stock. Burnham Asset Mgmt Ny holds 44,874 shares or 0.95% of its portfolio. Savings Bank Of New York Mellon has 0.32% invested in the company for 13.95 million shares. Klingenstein Fields And Ltd Liability Company, a New York-based fund reported 23,441 shares. Moreover, Oxford Asset Mgmt has 0.71% invested in Express Scripts Holding Company (NASDAQ:ESRX) for 225,615 shares. Iberiabank has 0.19% invested in the company for 5,569 shares. Acadian Asset Limited Liability Corporation holds 195,617 shares or 0.08% of its portfolio. Natl Asset Mgmt Inc accumulated 8,273 shares or 0.13% of the stock. Clear Harbor Asset Lc last reported 16,827 shares in the company.

ESRX Company Profile

Express Scripts Holding Company, incorporated on July 15, 2011, is a pharmacy benefit management (PBM) firm in the United States. The Firm is engaged in providing healthcare management and administration services to its clients, including managed care organizations, health insurers, third-party administrators, employers, union-sponsored benefit plans, workers’ compensation plans and government health programs. The Firm has two business divisions, which include PBM and Other Business Operations. The PBM segment includes its integrated PBM activities and specialty pharmacy operations. The Company’s Other Business Operations segment includes United BioSource Corporation (UBC) and its specialty distribution operations.

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