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Insys Led IBB’s Mid-Cap Stocks

Peter Neil

IBB Continued to Surge as Biotech Stocks Gained

(Continued from Prior Part)

IBB mid caps continue to give better returns

The mid-cap stocks of the iShares Nasdaq Biotechnology ETF (IBB) gained 2% on November 23, 2015, and outperformed IBB and the SPDR S&P 500 ETF (SPY), which gave returns of 0.75% and -0.1%, respectively. The mid-cap stocks account for ~20% of IBB’s portfolio. Out of 32 mid-cap stocks from IBB’s portfolio, only six stocks ended in the red and 26 stocks gave positive returns. IBB’s mid-cap stocks include stocks like Medivation (MDVN), ISIS Pharmaceuticals (ISIS), and Seattle Genetics (SGEN), which gave returns of 1.1%, 1.4%, and -3.2%, respectively.

The above graph reflects the performance of IBB’s mid-cap stocks in comparison with IBB and SPY. Since the beginning of November 2015, IBB’s mid-cap stocks have significantly outperformed IBB and SPY. IBB’s mid-cap stocks have given an average return of 15.0%. IBB returned 3.4% and SPY returned 0.65%.

Insys to present at Piper Jaffray

Insys Therapeutics (INSY) gained 8.1% on November 23, 2015. The stock gained on high trading volume of ~1.3 million shares being traded as compared to the five-day average trading volume of ~854,000 shares. INSY will present at the Piper Jaffray 27th Annual Healthcare Conference to be held on December 1, 2015, in New York City.

INSY closed at $31.45 and was trading 4.7% below its 100-day moving average of $33 and was trading 11.9% above its 50-day moving average. INSY has an RSI (relative strength index) of 55, indicating that the stock is neither overbought nor oversold. INSY has a median target price of $49. INSY has a trailing-12-month price-to-earnings (or TTM PE) of 46.94x. The stock has a book value of 3.3 per share. With its current price, the stock is trading at a price-to-book value (or PBV) of 9.57x. INSY has a weight of 0.35% in IBB’s portfolio.

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