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

Oncology Institute (NASDAQ:TOI) announced its quarterly earnings results on Thursday. The company reported ($0.08) earnings per share for the quarter, missing the consensus estimate of ($0.07) by ($0.01), FiscalAI reports. The company had revenue of $161.28 million for the quarter, compared to analyst estimates 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 Oncology Institute stock traded up $0.06 during mid-day trading on Thursday, hitting $5.19. 1,263,820 shares of the stock 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 has a 50-day simple moving average of $5.22 and a 200 day simple moving average of $3.96. The company has a market capitalization of $512.58 million, a P/E ratio of -14.02 and a beta of 0.39.

Insider Activity at Oncology Institute

In related news, insider Yale Podnos sold 23,451 shares of the stock in a transaction that occurred on Monday, June 8th. The stock was sold at an average price of $5.38, for a total transaction of $126,166.38. Following the completion of the sale, the insider directly owned 259,527 shares of the company’s stock, valued at approximately $1,396,255.26. This trade represents a 8.29% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which can be accessed through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, major shareholder Jorey Chernett acquired 33,500 shares of the business’s stock in a transaction on Wednesday, May 20th. The stock was acquired at an average cost of $4.07 per share, for a total transaction of $136,345.00. Following the transaction, the insider owned 10,567,858 shares of the company’s stock, valued at approximately $43,011,182.06. The trade was a 0.32% increase in their position. Additional details regarding this purchase are available in the official SEC disclosure. Over the last ninety days, insiders bought 131,500 shares of company stock valued at $609,265. 4.40% of the stock is currently owned by corporate insiders.

Hedge Funds Weigh In On Oncology Institute

A number of hedge funds and other institutional investors have recently made changes to their positions in the stock. Invesco Ltd. raised its position in Oncology Institute by 21.8% in the fourth quarter. Invesco Ltd. now owns 47,012 shares of the company’s stock worth $167,000 after acquiring an additional 8,425 shares during the period. Kanen Wealth Management LLC grew its position in shares of Oncology Institute by 61.6% during the 4th quarter. Kanen Wealth Management LLC now owns 2,976,144 shares of the company’s stock valued at $10,712,000 after acquiring an additional 1,134,043 shares during the period. XTX Topco Ltd bought a new position in shares of Oncology Institute during the 4th quarter valued at approximately $166,000. nVerses Capital LLC purchased a new stake in shares of Oncology Institute during the 4th quarter worth approximately $112,000. Finally, Engineers Gate Manager LP purchased a new stake in shares of Oncology Institute during the 4th quarter worth approximately $55,000. 36.86% of the stock is owned by hedge funds and other institutional investors.

Wall Street Analyst Weigh In

TOI has been the topic of a number of recent research reports. Weiss Ratings restated a “sell (d-)” rating on shares of Oncology Institute in a report on Friday, July 17th. Needham & Company LLC increased their price target on Oncology Institute from $5.00 to $7.00 and gave the company a “buy” rating in a research report on Wednesday, June 17th. BTIG Research raised their price objective on Oncology Institute from $8.00 to $9.00 and gave the company a “buy” rating in a research note on Thursday, July 9th. Finally, Lake Street Capital started 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. Four equities research analysts have rated the stock with a Buy rating and one has given a Sell rating to the company. According to MarketBeat, the stock has an average rating of “Moderate Buy” and a consensus price target 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.