Biogen Inc. (BIIB) shares are trading at higher $268.91 and the avg recommendation for the stock is Moderate Buy, while the current analyst price target stands at $305.04.
To add more color to this target, the company’s high over the last year is $374.99 and the low is $221.56. Over the last 52 weeks, BIIB is down -4.60% while the S&P 500 is up 14.62%. The catalyst for this interesting swing was the company’s recent earnings report.
A Notable Earnings Report
In the last quarter, BIIB reported a profit of $3.27 billion. Biogen Inc. also saw revenues increase to $3.68 billion. In addition, BIIB has free cash flow of $3.16 billion as of 06-2020. The company’s EBITDA came in at $2.09 billion which compares well with its peers.
BIIB booked profit margins of 40.90%, its Return on Equity (ROE) is 46.30%, and its Return on Assets is 22.30%. All told, it is clear that, BIIB needs to be on your watchlist.
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Of course, we must look beyond the financials and question how well those numbers represent the sustainable earnings power of the business. Investors need to know how sustainable this current run. BIIB has a short ratio of 2.45 and outstanding shares of 160.60M.
BIIB has seen increased volume after this news and investors are putting their support behind the value proposition. Furthermore, 10-day volume stands at 0.98 million and more growth is possible in the weeks ahead. Traders will also note the company’s earnings per share came in at 34.14. Biogen Inc. BIIB also noted assets of $25.51 billion at the end of the last quarter. Investors should also keep an eye on sector updates as BIIB has historically followed its peers on positive news.
All told, Biogen Inc. BIIB has strung together solid data and demonstrated underlying fundamentals. At its current valuation, BIIB represents an interesting risk/reward case. Traders should stay tuned to see if this recent report will push the stock to test recent resistance levels.
Biogen Inc. BIIB is now commanding a market cap of 42.67B and a float of 157.33M. BIIB is increasing its credibility in this sector and that could lead to more upside down the line. Sign-up for continuing coverage on shares of BIIB stock, as well as other hot stock picks, get our free newsletter today and get our next breakout pick!
Disclosure: we hold no position in BIIB, either long or short, and we have not been compensated for this article.