Q2 STOCKS TO BUY

Expedited COVID-19 Trials Give REGN a Boost

The stock is back within a chip shot of its all-time highs

Digital Content Manager
Jul 6, 2020 at 9:41 AM
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Biotech Regeneron Pharmaceuticals Inc (NASDAQ:REGN) is getting a boost this morning after news that it's starting phase 3 trials for its antibody drug cocktail to treat COVID-19. This trial comes just one month after Regeneron started its phase 1 trial for the treatment. Meanwhile, the firm and its partner Sanofi (SNY) halted their U.S. trial using the former's arthritis drug Kevzara to treat coronavirus patients. The stock is up 3.7% at $645.21 at last check. 

REGN's near nonstop climb up the charts has been impressive. The stock's 50-day moving average managed to capture several pullbacks, leading it to a year-over-year win of roughly 95.5%. Today, REGN is back within striking distance of its June 19 all-time high of $646.33. 

Analysts, meanwhile, still aren't completely sold. In fact, 10 of the 21 in coverage call REGN a "hold," compared to 11 "strong buys." Plus, the consensus 12-month price target of $616.96 is at a slight discount to Thursday's close. 

Options bulls have taken a little less convincing. At the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), 3.92 calls were picked up for every put during the last 10 days. This ratio stands higher than 93% of readings from the last year, suggesting a much healthier appetite for long calls than usual of late. 

 
 

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