Biogen Inc. (NASDAQ: BIIB) stock fell -2.38% on Friday to $199.34 against a previous-day closing price of $204.20. With 1.06 million shares changed hands, the volume of the stock remained heavier than its average volume of 0.94 million shares. During the session, the Drug Manufacturers – General company that operates in wider Healthcare sector, reached to the highest price of $209.25 whereas the lowest price it dropped to was $199.29. The 52-week range on BIIB shows that it touched its highest point at $304.21 and its lowest point at $187.16 during that stretch. It currently has a 1-year price target of $234.33. Beta for the stock currently stands at 0.42.
Price Performance and Earnings:
Stock performance is one of the indicators that investors use to determine whether they will profit from a stock. The price performance of BIIB was down-trending over the past week, with a drop of -2.34%, but this was down by -4.03% over a month. Three-month performance dropped to -3.70% while six-month performance fell -5.49%. The stock lost -32.55% in the past year, while it has lost -16.91% so far this year. A look at the trailing 12-month EPS for BIIB yields 14.01 with Next year EPS estimates of 15.71. For the next quarter, that number is 4.16. This implies an EPS growth rate of -58.10% for this year and -4.71% for next year. EPS is expected to decline by -6.12% annually over the next five years; however, over the past five years, the company experienced an annual growth rate of -9.30%.
Float and Shares Shorts:
At present, 145.90 million BIIB shares are outstanding with a float of 145.00 million shares on hand for trading. On Aug 30, 2022, short shares totaled 1.89 million, which was 1.30% higher than short shares on Jul 28, 2022. In addition to Mr. Michel Vounatsos as the firm’s CEO & Director, Mr. Michael R. McDonnell CPA serves as its Exec. VP & CFO.
Through their ownership of 86.44% of BIIB’s outstanding shares, institutional investors have majority control over the company. Other institutions hold 55.50% of BIIB, in contrast to 31.50% held by mutual funds. Shares owned by individuals account for 2.51%. As the largest shareholder in BIIB with 10.84% of the stake, PRIMECAP Management Co. holds 15,726,526 shares worth 15,726,526. A second-largest stockholder of BIIB, The Vanguard Group, Inc., holds 11,265,176 shares, controlling over 7.76% of the firm’s shares. BlackRock Fund Advisors is the third largest shareholder in BIIB, holding 8,447,175 shares or 5.82% stake. With a 6.15% stake in BIIB, the Vanguard PRIMECAP Fund is the largest stakeholder. A total of 8,923,691 shares are owned by the mutual fund manager. The Vanguard Health Care Fund, which owns about 3.58% of BIIB stock, is the second-largest Mutual Fund holder. It holds 5,192,274 shares valued at 1.01 billion. Vanguard Total Stock Market Index holds 2.99% of the stake in BIIB, owning 4,334,701 shares worth 846.91 million.
An Overview of Recent Financials:
Understanding a company as a customer does not mean you will understand it as an investor. The wise investor uses quantitative research to analyze metrics such as revenue, net income, and earnings. In its fiscal quarter reported on Jun 29, 2022, BIIB reported revenue of $2.59B and operating income of $907.00M. It generated $1.06B net income for the quarter, which came to $2.06B over the last twelve months. The EBITDA in the recently reported quarter was $1.03B and diluted EPS was $7.24. EBITDA for the full year was $3.45B.
Reading analyst opinions is an effective way to decide where to invest, and there are several opinions available for BIIB since 33 analysts follow the stock currently. There are 14 analysts who recommend BUY ratings, while 0 suggest SELL ratings. Of the remaining analysts, 18 believe that the stock is worth HOLDING, 1 give it an OVERWEIGHT rating, and 0 thinks that it’s UNDERWEIGHT. In the same way, a target price assigned to a stock can also reveal much about its potential. With BIIB analysts setting a high price target of $300.00 and a low target of $183.00, the average target price over the next 12 months is $233.38. Based on these targets, BIIB could surge 50.5% to reach the target high and fall by -8.2% to reach the target low. Reaching the average price target will result in a growth of 17.08% from current levels.
EPS: Estimates vs Actual
It is also common to use earnings estimates to evaluate a firm’s growth potential and to determine trading strategy. BIIB will report FY 2022 earnings on 02/02/2023. Analysts have provided yearly estimates in a range of $17.45 being high and $15.60 being low. For BIIB, this leads to a yearly average estimate of $16.44. The earnings surprise of a firm occurs when the actual results change from the consensus earnings estimate. Biogen Inc. surprised analysts by $1.19 when it reported $5.25 EPS against a consensus estimate of $4.06. The surprise factor in the prior quarter was -$0.72. Based on analyst estimates, the high estimate for the next quarter is $4.86 and the low estimate is $3.57. The average estimate for the next quarter is thus $4.16.
Summary of Insider Activity:
Insiders traded BIIB stock several times over the past three months with 4 Buys and 4 Sells. In these transactions, 1,836 shares were bought while 541 shares were sold. The number of buy transactions has increased to 44 while that of sell transactions has risen to 33 over the past year. The total number of shares bought during that period was 67,261 while 21,770 shares were sold.