Oncology Institute (NASDAQ:TOI) Releases Earnings Results, Misses Estimates By $0.01 EPS

Oncology Institute (NASDAQ:TOI) issued its earnings results on Thursday. The company reported ($0.08) EPS for the quarter, missing the consensus estimate of ($0.07) by ($0.01), FiscalAI reports. The company 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 Performance

Shares of NASDAQ TOI traded up $0.06 during midday trading on Friday, reaching $5.19. 1,263,820 shares of the company traded hands, 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 stock’s 50-day simple moving average is $5.22 and its 200-day simple moving average is $3.96. The firm has a market cap of $512.58 million, a PE ratio of -14.02 and a beta of 0.39.

Insider Activity

In other news, major shareholder Jorey Chernett acquired 18,000 shares of the company’s stock in a transaction dated Tuesday, July 21st. The stock was bought at an average price of $5.27 per share, with a total value of $94,860.00. Following the completion of the acquisition, the insider owned 10,648,858 shares in the company, valued at approximately $56,119,481.66. This represents a 0.17% increase in their position. The acquisition was disclosed in a document filed with the SEC, which is available through this hyperlink. Also, insider Yale Podnos sold 23,451 shares of Oncology Institute 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 position. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last ninety days, insiders bought 131,500 shares of company stock worth $609,265. 4.40% of the stock is owned by insiders.

Institutional Trading of Oncology Institute

A number of hedge funds and other institutional investors have recently made changes to their positions in the business. Kestra Advisory Services LLC acquired a new stake in shares of Oncology Institute in the fourth quarter valued at approximately $31,000. Cetera Investment Advisers boosted its holdings in Oncology Institute by 35.0% during the second quarter. Cetera Investment Advisers now owns 17,545 shares of the company’s stock worth $36,000 after buying an additional 4,545 shares during the last quarter. State of Wyoming acquired a new position in shares of Oncology Institute during the 2nd quarter worth about $37,000. Prelude Capital Management LLC acquired a new position in shares of Oncology Institute during the 3rd quarter worth about $41,000. Finally, BNP Paribas Financial Markets increased its stake 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 during the last quarter. 36.86% of the stock is currently owned by institutional investors and hedge funds.

Wall Street Analysts Forecast Growth

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

About Oncology Institute

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.