Its Stock Has Paid Off Big Time For Teva Pharmaceutical Industries Limited

Teva Pharmaceutical Industries Limited (NYSE: TEVA) stock fell -2.38% on Friday to $8.22 against a previous-day closing price of $8.42. With 8.79 million shares changed hands, the volume of the stock remained lighter than its average volume of 14.09 million shares. During the session, the Drug Manufacturers – Specialty & Generic company that operates in wider Healthcare sector, reached to the highest price of $8.50 whereas the lowest price it dropped to was $8.20. The 52-week range on TEVA shows that it touched its highest point at $11.34 and its lowest point at $6.78 during that stretch. It currently has a 1-year price target of $10.50. Beta for the stock currently stands at 1.26.

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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 TEVA was down-trending over the past week, with a drop of -8.05%, but this was down by -19.09% over a month. Three-month performance surged to 7.59% while six-month performance rose 1.86%. The stock lost -5.30% in the past year, while it has gained 2.62% so far this year. A look at the trailing 12-month EPS for TEVA yields -0.95 with Next year EPS estimates of 2.55. For the next quarter, that number is 0.62. This implies an EPS growth rate of 110.30% for this year and 0.24% for next year. EPS is expected to grow by 2.00% annually over the next five years; however, over the past five years, the company experienced an annual growth rate of 39.70%.

Float and Shares Shorts:

At present, 1.11 billion TEVA shares are outstanding with a float of 1.09 billion shares on hand for trading. On Aug 30, 2022, short shares totaled 20.27 million, which was 1.83% higher than short shares on Jul 28, 2022. In addition to Mr. Kare Schultz as the firm’s Pres, CEO & Director, Mr. Eliyahu Sharon Kalif serves as its Exec. VP & CFO.

Institutional Ownership:

Through their ownership of 45.37% of TEVA’s outstanding shares, institutional investors have minority control over the company. Other institutions hold 31.00% of TEVA, in contrast to 15.61% held by mutual funds. Shares owned by individuals account for 0.14%. As the largest shareholder in TEVA with 8.39% of the stake, Capital Research & Management Co holds 93,166,283 shares worth 93,166,283. A second-largest stockholder of TEVA, BlackRock Fund Advisors, holds 32,428,321 shares, controlling over 2.92% of the firm’s shares. Abrams Capital Management LP is the third largest shareholder in TEVA, holding 24,046,356 shares or 2.17% stake. With a 6.46% stake in TEVA, the American Funds Investment Company is the largest stakeholder. A total of 71,716,329 shares are owned by the mutual fund manager. The American Funds Growth Fund of Ame, which owns about 1.80% of TEVA stock, is the second-largest Mutual Fund holder. It holds 19,999,112 shares valued at 180.79 million. Miller Opportunity Trust holds 0.74% of the stake in TEVA, owning 8,200,000 shares worth 74.13 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, TEVA reported revenue of $3.79B and operating income of $659.00M. Over the past year, revenue came in at $15.43B while operating income stood at -$961.00M. It generated -$232.00M net income for the quarter, which came to -$1.05B over the last twelve months. The EBITDA in the recently reported quarter was $1.04B and diluted EPS was -$0.21. EBITDA for the full year was $4.16B.

Analysts Ratings:

Reading analyst opinions is an effective way to decide where to invest, and there are several opinions available for TEVA since 14 analysts follow the stock currently. There are 1 analysts who recommend BUY ratings, while 1 suggest SELL ratings. Of the remaining analysts, 11 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 TEVA analysts setting a high price target of $13.00 and a low target of $8.00, the average target price over the next 12 months is $10.56. Based on these targets, TEVA could surge 58.15% to reach the target high and fall by -2.68% to reach the target low. Reaching the average price target will result in a growth of 28.47% 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. TEVA will report FY 2022 earnings on 02/15/2023. Analysts have provided yearly estimates in a range of $2.66 being high and $2.47 being low. For TEVA, this leads to a yearly average estimate of $2.55. The earnings surprise of a firm occurs when the actual results change from the consensus earnings estimate. Teva Pharmaceutical Industries Limited surprised analysts by $0.10 when it reported $0.68 EPS against a consensus estimate of $0.58. The surprise factor in the prior quarter was $0.00. Based on analyst estimates, the high estimate for the next quarter is $0.68 and the low estimate is $0.58. The average estimate for the next quarter is thus $0.62.

Summary of Insider Activity:

Insiders traded TEVA stock several times over the past three months with 0 Buys and 0 Sells. In these transactions, 0 shares were bought while 0 shares were sold. The number of buy transactions has remained unchanged to 0 while that of sell transactions has remained unmoved to 0 over the past year. The total number of shares bought during that period was 0 while 0 shares were sold.

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