93.50 -0.26 (-0.28%)
Pre-Market: 7:00AM EDT
|Bid||93.34 x 800|
|Ask||94.00 x 3200|
|Day's Range||93.32 - 94.69|
|52 Week Range||58.59 - 95.44|
|Beta (3Y Monthly)||2.03|
|PE Ratio (TTM)||17.02|
|Forward Dividend & Yield||N/A (N/A)|
|1y Target Est||N/A|
Celgene brings to Bristol-Myers five late-stage products that could be approved in the near term, Caforio said.
Celgene brings to Bristol-Myers five late-stage products that could be approved in the near term, Caforio said.
These two marijuana stocks reported very different results last quarter. Plus, how Abbott's challenging Dexcom in diabetes, and what's next for Bristol-Myers following its Celgene acquisition.
Moody's Investors Service ("Moody's") assigned an A2 rating to Bristol-Myers Squibb Company's ("Bristol") proposed new senior unsecured exchange note offering. The rating is under review for downgrade. There are no changes to Bristol's existing ratings including the A2 senior unsecured long-term rating or the Prime-1 short-term rating, and these ratings remain under review for downgrade.
At first glance, shares of Amgen (NASDAQ:AMGN) look quite volatile. Upon further inspection, though, the six-month range in AMGN stock is actually pretty tight -- and it's been getting even tighter, as the stock has spent much of 2019 gathering in tightening coil. This sets up for a potentially large move. This move can happen in either direction, with bulls hoping Amgen stock resolves higher. * 7 Stocks That Can Outperform for Years Source: Richard Masoner via Flickr There are a lot of considerations when it comes to pulling the trigger on a name like Amgen. It's not just the technicals, but also the dividend, its valuation and growth profile. Let's take a closer look, first with the charts. Trading AMGN Stock Click to EnlargeAMGN is not the kind of stock that traders are normally drawn to. That's more for the names like Advanced Micro Devices (NADSAQ:AMD), Tesla (NASDAQ:TSLA) and others. But that doesn't mean we can't trace the technicals on AMGN stock.InvestorPlace - Stock Market News, Stock Advice & Trading TipsAt the end of March, AMGN stock was showing weakness and threatening to break down from a short-term double-top. Fast-forward about two weeks and Amgen stock is above all of its major moving averages. While being rejected by downtrend resistance (black line), shares are hanging just below this mark. Could that set up a breakout?That's what I'm looking for in AMGN stock. A drop down to about $190 would give bulls a chance to initiate a position near the 20-day moving average and uptrend support. Whether the pullback is done here, near $193, or drops to $190, as long as support holds, it could give AMGN stock the energy it needs to push through resistance.On the upside, a push through $196 could eventually ignite Amgen up to $206. Shares put in a double-top at this level in the fourth quarter, so it wouldn't be surprising to see this area act as resistance on AMGN's first try. On the downside, watch for support from the 50-day moving average at $188 -- provided uptrend support does not buoy Amgen.Below that, and a drop into the low-$180s is possible. Valuing Amgen StockAmgen stock is looking better and better on the charts, but that doesn't mean there aren't things to like about its fundamentals.For starters, AMGN stock has a 3% dividend yield. Management gave a ~10% bump in December, following increases of ~15% in each of the last two years ago. While the company has experienced lower growth than the past few years, it's clear management is putting an emphasis on returning capital to investors.There's also the valuation, which stands at less than 14 times this year's earnings. There is a catch, though: While this is a below-market valuation, we have to consider it versus its peers as well as against Amgen's own growth profile. When compared to names like Celgene (NASDAQ:CELG), Bristol-Myers Squibb (NYSE:BMY) (who are in M&A discussions) and Gilead (NASDAQ:GILD), Amgen stock is expensive.These stocks trade at roughly 10 times earnings or less, so, at 13.7 times this year's earnings, Amgen looks less attractive. It would help if it had better growth, too. Analysts expect revenue to decline almost 4% this year and for earnings to fall about 2% year over year. That said, consensus expectations do call for a rebound in both metrics in 2020 while AMGN could always top expectations this year. After all, it has beat -- rather impressively, I might add -- top- and bottom-line expectations in each of the past four quarters. * 10 Stocks That Are Screaming Buys Right Now One last note, AMGN stock is actually trading at a discount compared to its five-year average valuation -- and that's not just the price-to-earnings ratio either. Amgen isn't perfect, but if shares are going to break out this year, I don't expect the valuation to inhibit that move.Bret Kenwell is the manager and author of Future Blue Chips and is on Twitter @BretKenwell. As of this writing, Bret Kenwell is long CELG. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 7 Internet Stocks to Watch * 7 AI Stocks to Watch with Strong Long-Term Narratives * 10 Dow Jones Stocks Holding the Blue Chip Index Back Compare Brokers The post Why Amgen Stock Could Break Out to New Highs appeared first on InvestorPlace.
The fat lady is getting ready to sing with this big pharma deal. Celgene shareholders will soon have a decision to make.
We wrote in our last Letter that Celgene (NASDAQ:CELG) had recently announced it was being acquired by Bristol-Meyers Squibb in a $74 billion stock and cash acquisition. Over the course of the quarter, activist investors spoke out against the deal, large Bristol shareholders came out in support of it, and, finally, Institutional Shareholder Services (ISS) issued its opinion in favor of the deal going through. Warning! GuruFocus has detected 2 Warning Sign with CELG.
Top first quarter performance detractors include Qualcomm, Berkshire Hathaway, Booking Holdings, Alphabet Class C, and Starbucks, plus Charles Schwab and C.H. Robinson. During the quarter we sold Qualcomm and trimmed positions in Ross Stores, Old Dominion Freight Line, and Charles Schwab.
"When the two companies come together, we'll have two growing businesses," Caforio said in an interview with "Mad Money's" Jim Cramer. It's going to be a great company, [will] create value for shareholders, [and will be] very good for patients," he said. "I'm focused and we're focused on creating value for the long term and we're getting to work on the integration ... I believe the value of the new company will be demonstrated rapidly," he says.
Bristol-Myers Squibb Co's shareholders voted to approve the drugmaker's $74 billion acquisition of biotech Celgene Corp on Friday despite a campaign by activist hedge fund Starboard Value LP to scuttle the deal. "We, from a management perspective, from a board perspective, truly believe this is the right transaction for us," Bristol-Myers Chief Executive Giovanni Caforio told reporters after the vote. "The focus is on us right now to execute on the integration and then deliver the value of the combined portfolio, to confirm that the new company will deliver significant value for shareholders," he said.
More than 75% of Bristol-Myers shareholders voted to approve the deal, according to a preliminary tally announced by Bristol-Myers on Friday. Bristol-Myers' position took a positive turn in late March after an influential shareholder advisory group recommended investors vote in favor of the cancer drug specialist's takeover, and a key activist dropped its opposition to the deal. Institutional Shareholder Services recommended the deal, which had been challenged by key Bristol-Myers shareholders Starboard Value and Wellington Management, ahead of Friday's vote.
Bristol-Myers Squibb shareholders approve the pharmaceutical giant's $74 billion acquisition of cancer drugmaker Celgene. More than 70% of eligible shareholders voted for the deal, the company said Friday. Bristol-Myers Squibb BMY shareholders approved the pharmaceutical giant's $74 billion acquisition of cancer drugmaker Celgene in a vote on Friday.
Celgene shareholders also gave their support for the deal, which is expected to close in the third quarter but awaits US regulatory approval. “Together with Celgene, we will create a premier innovative biopharma company with leading scientific capabilities that is well positioned to address the needs of patients through high-value innovative medicines,” Bristol-Myers chairman and chief executive Giovanni Caforio said in a statement.
Concert Pharmaceuticals (CNCE) announces initiation of multiple-ascending dose phase I study to evaluate its pipeline candidate, CTP-692, as an adjunctive treatment for schizophrenia.
The mega-merger between Bristol-Myers Squibb (NYSE:BMY) and Celgene (NASDAQ:CELG) appears to be drawing closer to fruition. Despite staunch opposition from various hedge funds such as Starboard Value, the deal still looks like it has good odds of being a success. However, BMY stock has hardly responded to the news.Source: A 4 via Flickr It remains down in the dumps, near 52-week lows, even as the market as a whole had a phenomenal first quarter. Is it time to buy BMY stock ahead of the merger, or is the market on to something? Don't Count Chickens Yet: Will the Deal Close?Before looking at the combined company, it's important to remember that the merger hasn't closed yet. Until last Friday, in fact, the market seemed fairly skeptical that shareholders would approve the proposed merger. Last week, CELG stock was trading at around a 10% discount to its value in the event that Bristol-Myers Squibb successfully closed the deal.InvestorPlace - Stock Market News, Stock Advice & Trading TipsOn Friday, however, Institutional Shareholder Services "ISS" announced that it supported the deal. The ISS is an important body because many passive funds, such as ETFs, usually vote in accordance with ISS recommendations.That said, the deal still isn't a sure thing, as both Celgene and BMY stock owners vote later in April. As of this writing, the market is pricing about a 4% deal discount, suggesting that there is a relatively low, but not zero, chance of the deal breaking down. If you are buying either stock today, CELG stock might be more attractive given the modest discount, though keep potential tax considerations in mind. Bristol-Myers Squibb & Celgene TogetherNow, let's assume the deal closes. What does Bristol-Myers Squibb get for its purchase? For one thing, huge cost savings. It's expensive having your own sales and marketing team, along with other costs of being a large independent pharma company.Bristol-Myers estimates that it can save $2.5 billion per year once the two companies are combined. That's a huge sum, amounting to nearly 5% of Celgene's current market cap in annual cost reductions. This is a case where Celgene is worth much more to its acquirer than it was as a standalone firm.It's also important to note that Bristol-Myers offered to purchase Celgene after CELG stock had tanked. Since 2015, CELG stock had almost continuously traded above the $100 per share mark, and reached as high as $140 in 2017. It fell to $60 in late 2018, allowing Bristol-Myers to swoop in and buy the company around $90/share. That's still a big discount to where it had been historically, while giving a healthy premium to the late 2018 share price.Joining forces with Celgene accomplishes a lot strategically for Bristol-Myers. Perhaps most importantly, it broadens the company's oncology drug portfolio. As Bristol-Myers has a lot of late stage cancer trials under way, bringing Celgene into the fold lowers risk for the overall firm as its oncology portfolio will still be well-stocked even if some of its trials come up short. BMY Stock: The Price Is RightBristol-Myers got walloped during last fall's correction. BMY stock fell 20% in a few weeks. And it's hardly recovered since then, as investors remain nervous ahead of the Celgene merger. With Bristol-Myer's market cap at $77 billion and Celgene at $61 billion, this is almost a merger of equals and will overhaul the company's outlook going forward.That said, there are good reasons for optimism. As it is, Brisol-Myers is currently selling for less than 15x trailing earnings. Celgene is selling at under 10x forward earnings. Combine them, and hack off several billion in redundant costs, and you have a profit dynamo.Analysts, as a consensus, see the merged company trading at around 11x earnings, with earnings then growing at 8% per year over the next five years. Some analysts, however, suggest earnings will grow at a double-digit rate going forward, which would make BMY stock a huge winner starting off its cheap valuation now. Also, it's worth noting that BMY currently offers a 3.5% dividend yield. That's one of the better income sources you'll get from the pharma/biotech space. BMY Stock VerdictBristol-Myers Squibb stock isn't the easiest one in the world to buy right now. I can understand why BMY has been trading weakly in 2019. There's a great deal of uncertainty around the company's merger with Celgene. And its own pre-existing oncology pipeline has some concerns of its own.On top of that, you have rising political risk. President Trump has returned his focus to the pharma, suggesting that Republicans will be the "Party of Healthcare" going forward. He appears open to efforts that would lower drug prices. On the other side of the aisle, Democratic frontrunner Bernie Sanders wants to slash pharmaceutical prices by up to 50%.You're going to get a lot of troubling chatter and news headlines as the election cycle develops as it relates to BMY.Look past all the uncertainty, however, and BMY stock looks like a clear value here. The company was already highly profitable, and is snapping up Celgene at a great valuation.Once you cut redundant costs between the two firms here, there should be a great deal of upside in the combined company. The bull thesis for BMY stock could take awhile to play out, but shares should be trading nicely higher in a year or two.At the time of this writing, Ian Bezek held no positions in any of the aforementioned securities. You can reach him on Twitter at @irbezek. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 9 Best Dividend Stocks to Buy for Every Investor * 7 Catalysts That Will Send Marijuana Stocks Soaring in 2019 * 8 Risky Stocks to Watch as Earnings Season Kicks Off Compare Brokers The post BMY Stock Looks Really Appetizing as the Celgene Merger Approaches appeared first on InvestorPlace.
The cancer treatment market is a massive one, and the companies that produce these treatments often make strong investment opportunities. With so much financial opportunity in the space and several areas with medical need, oncology stocks tend to be met with heavy investor interest. Warning! GuruFocus has detected 6 Warning Signs with SGEN.