Schaeffer's Top Stock Picks for '25

Weak Drug Sales Undermine BIIB's Earnings Beat

The stock looks to have hit a plateau in mid-January

Digital Content Manager
Apr 22, 2021 at 9:57 AM
facebook X logo linkedin


The shares of Biogen Inc (NASDAQ:BIIB) were last seen down 3.9% at $259.23, even after the pharmaceutical concern posted first-quarter earnings of $5.34 per share, which topped analysts' estimates. The firm lifted its 2021 adjusted profit forecast, adding that it expects its experimental  Alzheimer's drug, aducanumad, to win approval in the U.S. by June, and bring in sales later this year. Biogen's revenue also beat expectations, though weak sales for multiple sclerosis drug Tecfidera could be weighing on the shares this morning. 

The equity has been middling since it managed to reclaim the $260 level in mid-January. And though BIIB briefly broke out atop its 320-day moving average, the trendline has acted as a ceiling on the charts, continuing to loom overhead during today's trading. Year-to-date, BIIB sports a 5.8% lead. 

Option traders were bearish ahead of Biogen's earnings event. At the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), BIIB sports a 10-day put/call volume ratio of 1.67, which stands in the 93rd percentile of its annual range. This means puts are outnumbering calls at a quicker-than-usual clip. 

Short-term option traders have been incredibly put-biased, too. The security's Schaeffer's put/call open interest ratio (SOIR) of 1.66 stands in the top-most percentile of all readings from the past 12 months. 

The brokerage bunch has also taken a hesitant stance. Of the 24 in coverage, 17 consider BIIB a "hold" or worse rating, while the remaining seven say "buy" or better. The 12-month consensus price target of $290.24, meanwhile, is a 12.3% premium to current levels. 

 
 

You have the chance to join one of Bernie's most exclusive programs, complete access at HUGE savings!

As we prepare for a new administration to take the reins in Washington, the near-term market landscape is rife with uncertainty.

The Federal Reserve has already hinted at the turbulence ahead, lowering its interest rate outlook for 2025.

Meanwhile, breakthroughs in artificial intelligence (AI), quantum computing, and other transformative sectors have unlocked incredible profit potential.

But these opportunities are fleeting, and timing is everything. That's where Quick-Hit Trader comes in.

Quick-Hit Trader is designed for precision and speed, getting you in and out of the market in a flash. While other investors scramble to navigate volatile conditions, you'll have access to expertly curated trades that leverage these rapid shifts to deliver explosive profits in short order.

This is your chance to capitalize on the fast-moving market like never before. Are you ready to make your move?

 

 

(function(doc, script) { var js, fjs = doc.getElementsByTagName(script)[0], frag = doc.createDocumentFragment(), add = function(url, id) { if (doc.getElementById(id)) {return;} js = doc.createElement(script); js.src = url; id && (js.id = id); frag.appendChild( js ); }; // Google+ button //add('https://apis.google.com/js/platform.js', async="defer"); // Facebook SDK add('//connect.facebook.net/en_US/all.js#xfbml=1&appId=772755279557744', 'facebook-jssdk'); // Twitter SDK //add('//platform.twitter.com/widgets.js', charset='utf-8'); fjs.parentNode.insertBefore(frag, fjs); }(document, 'script'));