BLCO

Bausch + Lomb ($BLCO) Insiders Signal Bottom with Consecutive Purchases Near All-Time Lows

05/27/2025 14:48

Insider buying activity at $BLCO (Bausch + Lomb) has intensified investor attention as senior executives and directors make significant purchases near the stock's all-time lows. On May 22, CEO Brenton Saunders acquired 22,000 shares at $11.28 per share, following Director Andrew Von Eschenbach's purchase of 1,695 shares at $11.76 on May 2. This marks Saunders' second major purchase in nine months, having previously bought 32,250 shares at $15.66 in August 2024, bringing his total insider purchases to over 54,000 shares. The timing of these insider purchases is particularly noteworthy as they occur near the stock's historic lows. $BLCO has plummeted approximately 48% from its October 2024 peak of $20.87 to a low of $10.90 in May 2025, currently trading in the low-$11 range. Saunders executed his recent purchase at a weighted average price between $11.19 and $11.38 across multiple transactions. Bausch + Lomb stands as one of the world's largest contact lens manufacturers, specializing in ophthalmic medical devices and pharmaceutical products. Founded in 1853, the company maintains its position among the global "Big Three" in contact lenses alongside Johnson & Johnson and Alcon. Key products include the Biotrue and Ultra contact lens series, along with intraocular lenses for cataract surgery. While spun off from parent company Bausch Health in 2022 as an independent public entity, Bausch Health retains approximately 90% ownership. The stock's decline stems from multiple headwinds converging throughout 2024 and early 2025. In December 2024, Bausch Health announced it was exploring a potential sale of Bausch + Lomb, initially boosting shares. However, February 2025 brought a 7% decline when the company stated it would "not pursue going private at this time," effectively ending discussions with private equity firms TPG and Blackstone regarding a potential $11.5 billion joint acquisition. March added another setback with a recall of certain implantable eye lenses from the enVista platform due to reported inflammatory reactions. The decisive blow came with Q1 2025 earnings released April 30, showing an adjusted loss of $0.15 per share versus analyst expectations of a $0.03 profit. Revenue of $1.14 billion slightly missed estimates, triggering a 15.6% single-day decline to all-time lows. Despite raising annual revenue guidance to $5.0-5.1 billion, concerns about earnings consistency persist. The 2025 ophthalmology market outlook remains generally positive despite Bausch + Lomb's challenges. RBC Capital Markets estimates the total addressable market at $36 billion with expected annual growth of 3-5%. Demographic trends including aging populations and increased digital device usage driving dry eye conditions support market expansion. Bausch + Lomb expects its dry eye treatment Miebo to achieve profitability by 2026. Meanwhile, significant changes at parent company Bausch Health add another dynamic. Billionaire Carl Icahn emerged as the largest shareholder in April, acquiring a 34% economic interest through 9.4% direct ownership and 24.6% via cash-settled equity swap agreements. Icahn's involvement intensifies focus on resolving Bausch Health's $27 billion debt burden and potential divestiture of its Bausch + Lomb stake. RBC projects a Bausch + Lomb sale could occur in 2026-2027. Investors view the insider buying as a positive signal from seasoned management. CEO Saunders brings over 20 years of industry experience, having previously led Forest Labs before its $63 billion sale to Allergan. Since joining Bausch + Lomb as CEO in 2020, he has focused on digital transformation and new product development. Director Eschenbach, a former FDA Commissioner, brings deep regulatory expertise in medical devices. Their purchases suggest confidence that the current share price significantly undervalues the company's intrinsic worth. Analyst sentiment remains cautiously optimistic with a consensus price target of $18.49, implying approximately 60% upside potential from current levels. While ratings lean toward "Hold," some analysts highlight structural growth in the contact lens market and opportunities in new therapeutic areas like dry eye treatment. However, the parent company's debt overhang and earnings volatility remain key risk factors. Near-term catalysts include Q2 earnings (expected in July) and Icahn's restructuring plans for Bausch Health. Longer-term, complete separation from Bausch Health and establishing an independent growth strategy represent critical objectives. The aggressive insider buying suggests management believes the current valuation presents compelling value amid these transitional challenges.

You can receive notifications when news is published.