Healthy Upside Potential: Teva Pharmaceutical Industries Limited (TEVA)

Teva Pharmaceutical Industries Limited (NYSE: TEVA) stock fell -3.27% on Tuesday to $7.69 against a previous-day closing price of $7.95. With 16.27 million shares changed hands, the volume of the stock remained heavier than its average volume of 11.3 million shares. During the session, the Drug Manufacturers – Specialty & Generic company that operates in wider Healthcare sector, reached to the highest price of $7.97 whereas the lowest price it dropped to was $7.68. The 52-week range on TEVA shows that it touched its highest point at $11.44 and its lowest point at $6.78 during that stretch. It currently has a 1-year price target of $9.69. Beta for the stock currently stands at 1.18.

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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 -5.41%, but this was down by -7.90% over a month. Three-month performance dropped to -22.79% while six-month performance fell -11.81%. The stock lost -9.21% in the past year, while it has lost -15.68% so far this year. A look at the trailing 12-month EPS for TEVA yields -1.44 with Next year EPS estimates of 2.46. For the next quarter, that number is 0.53. This implies an EPS growth rate of -662.70% for this year and 7.40% for next year. EPS is expected to grow by 1.60% annually over the next five years; however, over the past five years, the company experienced an annual growth rate of 34.30%.

Float and Shares Shorts:

At present, 1.11 billion TEVA shares are outstanding with a float of 1.10 billion shares on hand for trading. On Apr 27, 2023, short shares totaled 12.73 million, which was 1.14% higher than short shares on Mar 30, 2023. In addition to Mr. Eliyahu Sharon Kalif as the firm’s Exec. VP & CFO, Mr. Eric Drape serves as its Exec. VP of Global Operations.

Institutional Ownership:

Through their ownership of 51.06% of TEVA’s outstanding shares, institutional investors have majority control over the company. Other institutions hold 32.92% of TEVA, in contrast to 18.30% held by mutual funds. Shares owned by individuals account for 0.14%. As the largest shareholder in TEVA with 10.33% of the stake, Capital Research & Management Co holds 114,793,989 shares worth 114,793,989. A second-largest stockholder of TEVA, Capital Research & Management Co, holds 50,563,987 shares, controlling over 4.55% of the firm’s shares. BlackRock Fund Advisors is the third largest shareholder in TEVA, holding 30,582,654 shares or 2.75% stake. With a 3.75% stake in TEVA, the American Funds Growth Fund of Ame is the largest stakeholder. A total of 41,607,944 shares are owned by the mutual fund manager. The American Funds Investment Company, which owns about 3.59% of TEVA stock, is the second-largest Mutual Fund holder. It holds 39,840,286 shares valued at 347.81 million. American Funds Fundamental Invest holds 2.05% of the stake in TEVA, owning 22,731,576 shares worth 198.45 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 Mar 30, 2023, TEVA reported revenue of $3.79B and operating income of $659.00M. The EBITDA in the recently reported quarter was $1.05B and diluted EPS was -$0.21.

Analysts Ratings:

Reading analyst opinions is an effective way to decide where to invest, and there are several opinions available for TEVA since 0 analysts follow the stock currently. 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 $14.00 and a low target of $7.00, the average target price over the next 12 months is $9.69. Based on these targets, TEVA could surge 82.05% to reach the target high and fall by -8.97% to reach the target low. Reaching the average price target will result in a growth of 26.01% 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.

Summary of Insider Activity:

Insiders traded TEVA stock several times over the past three months with 0 Buys and 2 Sells. In these transactions, 0 shares were bought while 77,421 shares were sold. The number of buy transactions has remained unchanged to 0 while that of sell transactions has risen to 2 over the past year. The total number of shares bought during that period was 0 while 77,421 shares were sold.

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