Owens & Minor Plunges 14.61% Intraday, 69% Year-To-Date Amid Strategic Overhaul, Optum Health Partnership

The share price fell to its lowest level since August 2019 today, with an intraday decline of 14.61%.

Owens & Minor (OMI) has plunged 69% year-to-date amid a strategic overhaul focused on its Patient Direct business and a partnership with Optum Health. The company recently divested its Products & Healthcare Services segment to concentrate on home-based care solutions, aligning with industry trends toward cost-efficient, patient-centric models. Despite these moves, sustained financial losses, operational restructuring costs, and uncertainty over the turnaround’s success have fueled investor skepticism. The stock now trades at $3.97, a 35.1% discount to the $6.12 analyst fair value estimate, reflecting concerns over near-term profitability and debt servicing challenges.

Key catalysts for potential recovery include OMI’s operational efficiency initiatives, such as supply chain automation and IT infrastructure upgrades, which aim to reduce costs and improve margins. The Optum Health collaboration is also critical, as it enhances OMI’s ability to scale home healthcare services through advanced analytics and care coordination. However, execution risks remain high, with restructuring costs and competitive pressures in the home care sector posing hurdles. Analysts argue the stock’s steep valuation gap suggests market pessimism, but successful implementation of its strategy could unlock long-term value if the company achieves profitability and revenue growth within the projected timeline.