Oncology Institute (NASDAQ:TOI) Announces Earnings Results

Oncology Institute (NASDAQ:TOI) issued its earnings results on Thursday. The company reported ($0.08) earnings per share (EPS) for the quarter, missing the consensus estimate of ($0.07) by ($0.01), FiscalAI reports. The business had revenue of $161.28 million during the quarter, compared to analysts’ expectations of $155.28 million.

Here are the key takeaways from Oncology Institute’s conference call:

• Q2 revenue rose 34.6% year over year to $161.3 million, while adjusted EBITDA reached $0.2 million, marking the company’s second profitable quarter as a public company. Gross margin improved to 16.8% from 14.6% a year ago.
• Starling completed a refinancing that replaced its $86 million convertible note with a $75 million term loan, using $11 million of cash and avoiding shareholder dilution. The transaction extends debt maturities from 2027 to 2031 and improves liquidity.
• The company expects three new delegated capitation contracts in Q4 representing approximately 80,000 lives and $50 million in annualized capitated revenue, while a California exclusivity win adds roughly 230,000 lives and an estimated $6 million in annualized capitation revenue.
• Full-year guidance was raised to $650 million-$670 million of revenue, $105 million-$110 million of gross profit, and $2 million-$7 million of adjusted EBITDA; positive free cash flow guidance of $5 million-$15 million was maintained.
• Patient-services gross profit fell 57% year over year to $2.1 million, and capitated medical loss ratio increased to 85.5% from 71% a year ago as new members ramp. Management expects MLR to fluctuate within an 80%-90% range over the next 12 months, while the Florida contract launch was delayed from Q3 to Q4.

Oncology Institute Stock Up 1.1%

TOI traded up $0.06 during trading on Thursday, reaching $5.19. 1,263,820 shares of the company were exchanged, compared to its average volume of 1,921,963. Oncology Institute has a 12-month low of $2.32 and a 12-month high of $6.67. The company’s 50-day moving average is $5.22 and its two-hundred day moving average is $3.96. The company has a market cap of $512.58 million, a price-to-earnings ratio of -14.02 and a beta of 0.39.

Analyst Upgrades and Downgrades

Several research analysts have recently weighed in on the company. Weiss Ratings reiterated a “sell (d-)” rating on shares of Oncology Institute in a research note on Friday, July 17th. Lake Street Capital began coverage on shares of Oncology Institute in a report on Monday, July 6th. They set a “buy” rating and a $10.00 price objective on the stock. BTIG Research increased their target price on shares of Oncology Institute from $8.00 to $9.00 and gave the stock a “buy” rating in a research report on Thursday, July 9th. Finally, Needham & Company LLC lifted their target price on shares of Oncology Institute from $5.00 to $7.00 and gave the stock a “buy” rating in a research note on Wednesday, June 17th. Four research analysts have rated the stock with a Buy rating and one has given a Sell rating to the stock. According to MarketBeat.com, Oncology Institute has an average rating of “Moderate Buy” and a consensus target price of $8.50.

Insider Transactions at Oncology Institute

In other news, major shareholder Jorey Chernett purchased 33,500 shares of the stock in a transaction dated Wednesday, May 20th. The shares were purchased at an average cost of $4.07 per share, with a total value of $136,345.00. Following the completion of the acquisition, the insider owned 10,567,858 shares in the company, valued at $43,011,182.06. This represents a 0.32% increase in their position. The transaction was disclosed in a filing with the SEC, which is available through this hyperlink. Also, insider Yale Podnos sold 23,451 shares of the firm’s stock in a transaction that occurred on Monday, June 8th. The shares were sold at an average price of $5.38, for a total transaction of $126,166.38. Following the completion of the transaction, the insider owned 259,527 shares of the company’s stock, valued at $1,396,255.26. This trade represents a 8.29% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have acquired a total of 131,500 shares of company stock valued at $609,265 in the last ninety days. Insiders own 4.40% of the company’s stock.

Institutional Trading of Oncology Institute

Institutional investors and hedge funds have recently bought and sold shares of the company. Kestra Advisory Services LLC bought a new position in shares of Oncology Institute in the fourth quarter worth $31,000. Prelude Capital Management LLC bought a new position in Oncology Institute in the 3rd quarter worth about $41,000. BNP Paribas Financial Markets raised its holdings in shares of Oncology Institute by 141.0% in the 3rd quarter. BNP Paribas Financial Markets now owns 12,119 shares of the company’s stock valued at $42,000 after acquiring an additional 7,091 shares in the last quarter. Caitong International Asset Management Co. Ltd raised its holdings in shares of Oncology Institute by 344.0% in the 4th quarter. Caitong International Asset Management Co. Ltd now owns 14,545 shares of the company’s stock valued at $52,000 after acquiring an additional 11,269 shares in the last quarter. Finally, Sherbrooke Park Advisers LLC bought a new stake in shares of Oncology Institute during the 3rd quarter valued at about $51,000. 36.86% of the stock is currently owned by hedge funds and other institutional investors.

Oncology Institute Company Profile

The Oncology Institute, Inc, an oncology company, provides various medical oncology services in the United States. The company operates through three segments: Dispensary, Patient Services, and Clinical Trials & Other. It offers physician services, in-house infusion and dispensary, clinical trial, radiation, outpatient blood product transfusion, and patient support services, as well as educational seminars, support groups, and counseling services. The company also provides managing clinical trials, palliative care programs, stem cell transplants services, and other care delivery models associated with non-community-based academic and tertiary care settings; and conducts clinical trials for a range of pharmaceutical and medical device companies.