Okay, I'm certainly no expert, so please check my reasoning here. Biogen has solid financials with a strong pipeline, particularly with this Alzheimer's drug in development possibly being a huge blockbuster.
According to the Key Stats page, there are almost 235 million BIIB shares out there with almost 93% held by institutions.
Biogen has just announced a $5 billion buyback. $5,000,000,000 divided by $385, which is the price BIIB has been gravitating around this week, equals 12.9 million shares.
Assuming the amount held by institutions stays at least 90%, then there are approximately 23.5 million shares held by non-institutions.
With the buyback, that 23.5 million would be reduced by almost 13 million to approximately 10.5 million shares held by non-institutions.
That's not very many shares. How can the price of this stock not go up? How can it possibly stay under $400 much longer? How can it not go up to at least $450? And possibly even over $500? With this buyback isn't it likely we'll see some upgrades soon and price targets raised?
Please check my reasoning. If I'm wrong, please explain. Wanna learn! Wanna learn! Wanna learn!
Johnny? You got a Meatball to throw into this for me, dude?