Insider Buy - Option Care Health (OPCH)

Background

Option Care (OPCH) is a provider of home and alternate site infusion services. The firm provides infusion therapy and ancillary healthcare services through a national network of full-service pharmacies. It was previously part of Walgreens Infusion Services. In 2015, it became an independent entity through a collaborative investment between Madison Dearborn and Walgreens Boots Alliance (WBA). In 2019, Option Care merged with Bioscrip, resulting in a new organization where Walgreens and Madison Dearborn collectively hold an 80% ownership stake.

Which Insiders are Buying

In the past few months, there have been 4 insider open-market purchases of OPCH stock.

10/30/2023 - Elizabeth Bierbower (Director) purchased 3,000 shares at $26.37 ($79,110 total value). This represents a 29% increase in her holdings.

8/17/2023 - Carter Pate (Director) purchased 1,465 shares at $34.32 ($50,279 total value). This represents a 1% increase in his holdings

8/11/2023 - Harry Kraemer (Director) purchased 55,000 shares at $34.63 ($1,904,518 total value). This represents a 31% increase in his holdings.

8/15/2023 - Collin Smyser (General Counsel) purchased 18,885 shares at $34.63 ($86,725 total value). This represents a 15% increase in his holdings.

The last time there was a cluster buy was back in May 2021, when the stock was trading at around $17 per share. The CEO, two directors, and the CFO purchased stock before a strong two-year rally.

After a strong Q3 earnings announcement on Oct 25, 2023, OPCH’s share price fell. This occurred despite the fact that OPCH beat EPS estimates and was in-line with revenue estimates. The street may have expected even better results given a 20% run up just before the Q3 earnings announcement. OPCH also disclosed a preference for M&A versus stock buybacks which may have contributed to uncertainty about the stock’s future.

We believe this may be a stock worth keeping an eye on, given this insider buy activity and a recent pull back in stock price.

Insider Sell - Uber Technologies (UBER)

Background

Uber is a technology company that offers a platform for ride-hailing, allowing users to book car rides from drivers who use their own vehicles. It also provides other services like food delivery through Uber Eats and freight transportation with Uber Freight. Users can access these services via a mobile app, where they can request rides, track their driver's location, and make payments electronically. Uber operates globally, connecting passengers with local drivers in many cities around the world.

Which Insiders are Selling

11/07/2023, 7/18/2023, 6/26/2023 - Dara Khosrowshahi (CEO) is selling under a 10b5-1 plan. He has sold ~$20mm of stock over the last 5 months between share prices of $45 to $50. He last purchased Uber stock in May 2022 when the price was $26.73.

See below Dara’s track record in UBER over the last 5 years.

Now, let’s take a look at Dara’s track record at Expedia where he was CEO and is now a board member.

Dara sold ~$12mm of Expedia (EXPE) stock at prices between $184 to $200 in the first of half of 2022. Notably, the week after Dara completed selling EXPE shares, EXPE tumbled to $130 per share; a few weeks later, EXPE was trading below $100.

We believe UBER may be a stock worth monitoring, especially if you have a position, given recent insider sells.