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Drug Stock Flirts With 13-Year Lows After Earnings

TEVA is tanking to new multi-year lows after slashing its dividend

Aug 3, 2017 at 11:03 AM
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U.S. stocks are flat to mixed this morning, with the Dow leading its peers once again. Drug stocks Teva Pharmaceutical Industries Ltd (ADR) (NYSE:TEVA) and Regeneron Pharmaceuticals Inc (NASDAQ:REGN), plus 3-D printing company 3D Systems Corporation (NYSE:DDD), are three stocks in the news this morning. Here's a quick look at what's moving shares of TEVA, REGN, and DDD.

TEVA Stock Tanks to Multi-Year Low

Teva Pharmaceuticals is reeling after reporting a plunge in second-quarter earnings and slashing its dividend. Shares of the generic drugmaker are down 18.6% to trade at $25.45, with this morning's bear gap carrying TEVA as far south as $25.20 -- its lowest price since October 2004.

From a longer-term view, TEVA has been cascading lower since the start of 2016. But despite the stock's troubles, five analysts still maintain "buy" or better ratings. On the other hand, TEVA's Schaeffer's put/call open interest ratio (SOIR) of 1.38 arrives in the 99th annual percentile, as options traders were unusually put-heavy heading into the earnings report.

REGN Erases Initial Post-Earnings Pop

Regeneron Pharmaceuticals announced better-than-expected second-quarter earnings, and hiked its full-year sales forecast for its Eylea drug. However, traders remain disappointed by soft sales for Dupixent, with the eczema treatment raking in a lower-than-forecast $29 million. After jumping higher out of the gate, REGN is now trading down 0.4% at $474.95.

Options traders are likely disappointed with the post-earnings price action so far. Ahead of REGN's quarterly report, the stock had racked up a 10-day call/put volume ratio of 2.26 across the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), which ranks higher than 86% of all other ratios in the past year.

DDD Stock Gaps Lower on Earnings Miss

3D Systems' lower-than-expected second-quarter earnings are exacerbating the 3-D printing stock's steep decline off its mid-May peak of $23.70. DDD stock is down 17.3% at $14.07, gapping well below resistance at its descending 20-day moving average. 

At the ISE, CBOE, and PHLX, DDD stock has garnered a 10-day put/call volume ratio of 1.84, which outranks 88% of all other ratios in the past year. In other words, options traders are leaning bearish towards the printing stock.

 

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