Q2 STOCKS TO BUY

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. 

 
 

Which of These SUB-$5 Stocks Could 26x From Here? (AD)

He called a rare 11x on Tesla…

Then he called a 26x on Workhorse…

Then an even rarer 35x on Nio Inc…

Now Tim Bohen says these 5 tiny “America First” stocks are next up in 2025.

They’re trading for less than $5 right now.

But thanks to Elon & Trump’s new alliance…

They could be off to the races in Trump’s first 100 days.

And right now for a limited time…

You can get the names & tickers for just $1 here. (AD)

GRAND SLAM COUNTDOWN

 
 

Featured Articles from Trusted Partners:

🚀 One Stock Pick Could Change Everything in 2025
What if one stock pick could define your success next year? Get 10 expert-vetted stocks set for 2025—plus 5 bonus picks to watch now. Get the Report →

🆕 New Options Need New Trading Strategies
Zero-DTE options are the newest (and hottest) options to trade.  Professional traders have rushed into the market and are making a mint.  Don’t get left behind - learn all about these options, how to trade them, market setups to profit from, plus much more. Download now →

👀 Revealed: 3 Defensive Stocks for Your Portfolio
Worried about the market? This free report reveals 3 under-the-radar defensive stocks for uncertain times in any kind of economy.

 

 
 

FREE Report Download

 

Follow us on X, Follow us on Twitter