|Bid||103.47 x 1800|
|Ask||108.29 x 800|
|Day's Range||104.35 - 107.37|
|52 Week Range||89.01 - 122.97|
|PE Ratio (TTM)||9.86|
|Beta (3Y Monthly)||1.61|
|Expense Ratio (net)||0.47%|
For the last few weeks, healthcare stocks have been hit hard. This is not from any fundamental fault of their own, but rather from political rhetoric. Both Republicans and Democrats alike want to punish them as we near another round of elections. But therein lies the opportunity.Source: Jon Fingas via Flickr (Modified)The politicians can inflict harm on the stock price of Intuitive Surgical (NASDAQ:ISRG), for example, but eventually, the Profit and Loss statement will win over the fear mongering. After all this is a company that has been delivering phenomenal results for years and will continue to do so for more to come.But for now, the stock price is falling, so I consider this trade tactical from the sense that I'd be catching a falling knife. Usually I don't like to be the hero, but in this case, I am confident in Intuitive Surgical's long-term prospects, so I don't mind turning this trade into an investment.InvestorPlace - Stock Market News, Stock Advice & Trading TipsTherefore, I can buy the shares outright here going into earnings. If they sell it off on Monday, then I would add to my stake once they hit the right levels to do that. ISRG Stock by the NumbersFundamentally, Intuitive Surgical stock is not cheap. It sells at a 56 trailing price-to-earnings ratio and 16 times sales. But it is a growth stock, so for now I don't worry too much about the margin. When the company matures and starts to stagnate, then I'll judge it more on profitability. * 5 Dividend Stocks Perfect for Retirees The stock recently had a full correction (as Wall Street defines the term) as it fell more than 10% in mere days. Luckily, it did so from a fresh all-time high. In February, ISRG broke out into a bullish pattern, and true to its form, the stock filled the entire target. I've seen this happen in this stock many times before, so this is a chart that respects technical formations.To that point, ISRG broke down from the very sharp rising wedge ahead of the earnings. This resulted in taking out a lot of recent froth from the recent rally. This was an inevitable scenario, but one that doesn't change the bullish thesis. It is merely short-term price action where traders booked fast profits going into a binary event.So in theory I can go long the shares ahead of tonight's earnings report. But doing so would leave me vulnerable to a short term dip from the coin flip event. So it's best to take the position in tranches -- one today and the next I can add to it next week. This would leave me room to average my entry cost lower, so I can hold the stock with better conviction.The options markets provide other ways to trade the stock. One is to limit the out-of-pocket expense and replace the stock purchase with that of June calls or call spreads. But unlike the stock, the risk there is that time becomes my enemy. To profit with calls, I would need the move to happen soon, else I risk losing money even if the stock doesn't fall.That is why I prefer to sell downside risk into what others fear. Wednesday, ISRG stock fell 6.5% so I could sell the April 26 $455 put to collect $2 per share. The money goes into my account now, and if ISRG stays above that level then I created income out of thin air. Otherwise, I would break even at $453 per share.For a longer-term trade, I would sell the July $400 put, which would create the opportunity to profit $4 per contract while leaving me a 23% buffer from the current price. In return, I commit to buying shares at $400 if the price falls through that level between now and July. In that case, I don't start losing money until $396 per share.So this drop in ISRG stock does not change its long-term outlook. This is normal price action that is part of any breakout. The bulls have to retest the necklines from which they broke out to make sure they are solid enough to take the next leg higher.After the recent correction ISRG lags the S&P 500 for 2019, but year-to-date it is still a super star stock. In the past 12 months, ISRG stock is up almost three times more than the S&P. Moreover, it corrected because of the negative sentiment against all healthcare stocks.Nicolas Chahine is the managing director of SellSpreads.com. As of this writing, he did not hold a position in any of the aforementioned securities. You can follow him as @racernic on Twitter and Stocktwits. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 5 Dividend Stocks Perfect for Retirees * 7 Reasons the Stock Market Rally Isn't Over Yet * 10 S&P 500 Stocks to Weather the Earnings Storm Compare Brokers The post Intuitive Surgical Stock Is Down but Not Out appeared first on InvestorPlace.
Shares of Mustang Bio Inc. blasted off to a near 4-fold gain (up 257%) in premarket trade Thursday, after the biopharmaceutical company said it entered a licensing agreement with St. Jude Children's Research Hospital to develop the lentiviral gene therapy for the treatment of "bubble boy" disease (XSCID) for commercial use. Data from a phase 1/2 clinical trial evaluating the safety and efficacy of a lentiviral vector to transfer a normal copy of the IL2RG gene to bone marrow stem cells in newly diagnosed infants under the age of two with XSCID, showed that bone marrow harvest, busulfan conditioning and cell infusion were well tolerated, all patients cleared previous infections and are growing normally and most patients were discharged from the hospital within one month. "The results have been very good thus far," said Ewelina Mamcarz, assistant member at St. Jude. "We've been able to restore a full immune system pretty quickly." Mustang Bio's stock, which is on track to open at a 1-year high, was down 9.5% year to date through Wednesday. In comparison, the iShares Nasdaq Biotechnology ETF has gained 9.0% and the S&P 500 has advanced 15.7%.
Investing in biotech companies requires a lot of faith and courage. It is not easy to risk assets into a stock on faith that their research will deliver viable results. This clearly makes ImmunoGen (NASDAQ:IMGN) a momentum stock. This makes it difficult to trade because on the way down, it seems headed to zero. But therein lies an opportunity.Source: Shutterstock While the iShares Nasdaq Biotechnology ETF (NASDAQ:IBB) has been flirting with all-time highs for months, IMGN stock has fallen off a cliff. This year, the IBB is up 14% while IMGN is down 44% for the same period. It is now as close to its lows as the sector is to its highs.Clearly there is little hopium left in the stock price. Buying it here resembles a lotto ticket. I emphasize the word bet, as this is definite more gambling than investing.InvestorPlace - Stock Market News, Stock Advice & Trading TipsHowever, buying a stock with a cheap sticker price like IMGN doesn't mean it is cheap from a valuation perspective. Meaning that even though the stock has a $2.70 face value, I could still lose 100% of my money. So, How to Play IMGN StockIf I already own the shares, it's probably too late to sell them now, but that also depends on the investor time-frame and thesis on IMGN. Adding new positions here would require me to have new information to do it with conviction. This chart is too ugly for me to buy without inside information or new fundamental reasons to expect a rebound.This is a knife that I don't want to catch for an investment thesis. But there is room for speculation in some portfolios, so I understand the attraction to bet on better days to come for IMGN stock. * 7 Mid-Cap Stocks to Find the Market's Sweet Spot Those looking to gamble on a rebound need to plug their nose and take small position. Or better yet, use the options markets to buy calls or call spreads. There, I could make it a small investment with a huge upside percentage gain. Options offer a much bigger bang for the buck than buying the underlying equity outright.After this year's February cliff, ImmunoGen stock is coming into the earnings event next month from rock bottom. Half of the Wall Street expert analysts still rate the stock as a buy with an average price target that is more than double its current value. So they must still see value in holding on to the shares for now. While this alone is not a reason to buy the shares, clearly these analysts have reasons for sticking with their optimistic outlook even as though price approaches zero.I never assume that I am catching absolute bottoms in any stock I trade, so I don't take a full-sized position. Since clearly IMGN stock is not a viable investment thesis yet, any long position here is more hopium than conviction. So I would keep the size small so that it doesn't break the heart or the piggy bank.ImmunoGen stock has been trending down for five years, so there is no reason to assume it can flip on a dime. Moreover, the equity markets in general are also near all-time highs, so it's likely that IMGN stock could have more macroeconomic downside pressure from a correction.Nicolas Chahine is the managing director of SellSpreads.com. As of this writing, he did not hold a position in any of the aforementioned securities. You can follow him as @racernic on Twitter and Stocktwits. 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 ImmunoGen Stock Is in Trouble Going Into Earnings appeared first on InvestorPlace.
Bio-Path Holdings Inc.'s stock rocketed 48% in morning trade Monday, after the biotechnology company focused on cancer treatments filed to withdraw a common stock offering. Volume was 4.3 million shares, already more than half the full-day average of about 5.7 million shares. The company said in a filing late Friday that it submitted its request for withdrawal because it "elected to not pursue the sale of securities," and confirms that no securities were sold or will be sold. On March 12, the company said it had agreed with several institutional investors to sell 712,910 shares of common stock for $25.95 each. That would have represented a 28% increase to the 2.51 million shares outstanding as of March 15. On Jan. 18, the company effected a 1-for-20 reverse stock split. The stock has run up nearly 7-fold year to date (563%), while the iShares Nasdaq Biotechnology ETF has gained 14% and the S&P 500 has climbed 15.6%.
Axcella Health Inc., a Cambridge, Mass.-based biotechnology company, has filed for an initial public offering. The company has applied to list its shares on the Nasdaq Global Market under the ticker symbol "AXLA," while using place-holder amount of $86.25 million for the value of the proposed IPO. The company focuses on developing "multifactorial interventions" to address dysregulated metabolism. Axcella recorded a net loss of $36.1 million in 2018, after a loss of $30.9 million in 2017. The joint book-running managers of the IPO are Goldman Sachs, J.P. Morgan and SVB Leerink. The company is looking to go public at a time the Renaissance IPO ETF has rallied 32.6% year to date, the iShares Nasdaq Biotechnology ETF has climbed 16.0% and the S&P 500 has advanced 15.2%.
Having exposure to trending areas like Robotics & AI, e-commerce and IoT, Global X is set to gain from the booming genomics market with the GNOM ETF.
Last year's extreme sentiment fears have abated and now the equity markets are back near all-time highs. This includes stocks like AstraZeneca (NYSE:AZN) as it set a new high late last month. From that standpoint, this is not an obvious entry point into AZN stock, but whether you should buy the stock also depends on a few other factors.Source: Shutterstock Those who want to own AZN shares for the long term can afford to ignore short-term downside risk. But for most other investors who prefer to start an ownership position into a stock in the green should be slightly more surgical than just jumping in at any time.AZN stock is on a tear up 11% in 12 months. But the company will report earnings on April 26 and those events are wild. So this makes buying the stock now a short-term binary bet. Reactions to earnings scorecards are usually more to do with expectations than the actual value of a stock.InvestorPlace - Stock Market News, Stock Advice & Trading TipsBefore you label me a hater, my caution for AstraZeneca stock here is not a dis against the company itself or its prospects. I am merely concerned with buying into a stock that is not likely to fall soon thereafter. Looking back on its prior reactions to earnings, they are split. * 10 Dow Jones Stocks Holding the Blue Chip Index Back Last quarter, the stock spiked drastically on the results, which left a giant open gap in the chart. Although this does not happen all of the time, Wall Street usually likes to fill these gaps.Since the spike to all-time highs, AZN stock has been drifting lower and testing recent support. If it loses $40 per share, it risks triggering a bearish pattern that would close the gap below. Although this is not a forecast, it is a scenario that could unfold here and investors need to be aware of it.The good news is that $39 per share is a mid-term pivot level and those tend to lend support on the way down. These are zones that the bulls and bears find interesting, so they will fight it out and create price congestion. How to Approach AZN Stock NowSo far my reservation to owning the shares immediately has been technically based. Fundamentally, AZN stock is not cheap as it sells at a price-to-earnings ratio of 47. This is more than three times as expensive as Bristol-Myers Squibb (NYSE:BMY) and twice as expensive as Apple (NASDAQ:AAPL) … to draw absolute and relative comparisons, respectively.Moreover, healthcare and biotech stocks are back in the sights of the political rifles. This is the only current bipartisan consensus topic. Both Democrats and Republicans want to vilify and persecute the drug companies. The rhetoric of both sides involves bringing legislation that would bring down the price of medicine and change the current Health Care Act. * 7 Vulnerable Stocks to Watch On Brexit News and Trade Wars These are nervous times on Wall Street. The S&P 500 has been on an extended run since the December crash and that makes investors nervous. Almost everyone I hear in the media suggests that traders are ready to sell at the first sign of trouble. So the prevailing idea is that we've come too far too fast. For some reason, they didn't say that on the way down, when last year we fell even faster and farther.But for now, we have to respect the collective and be cautious. This is not an obvious time to load up on new positions of AZN stock, even if it means I would miss out on a few upside dollars if it rips. And for those who already own AstraZeneca stock, it's not an alarm to sell out of the position. Furthermore, the options markets offer many ways I can temporarily defend my shares by selling covered calls or buying puts. Doing both would be a dollar neutral strategy.Nicolas Chahine is the managing director of SellSpreads.com. As of this writing, he did not hold a position in any of the aforementioned securities. You can follow him as @racernic on Twitter and Stocktwits. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 10 Medical Marijuana Stocks to Cure Your Portfolio * 8 Best Stocks to Buy for an April Rally * Top 20 Stocks to Buy for 20-Somethings! Compare Brokers The post Is AstraZeneca Stock Worth Buying Before Earnings? appeared first on InvestorPlace.
Shares of Concert Pharmaceuticals Inc. took a sharp afternoon dive Monday, after the biopharmaceutical company said the patent trial and appeal board found that the claims of the patent on its alopecia areata treatment CTP-543 were "not patentable." The stock, which was little changed in afternoon trade just prior to the announcement, plunged 17% toward a 2-year low after the announcement. The company said the decision was appealable to the U.S. court of appeals. "While we're disappointed in this outcome, we believe we have strong arguments supporting the validity of our patent and intend to appeal the decision as we work to create additional intellectual property protecting CTP-543," said Chief Executive Roger Tung. In April 2017, Incyte Corp. had filed a petition challenging the validity of the patent on CTP-543. Incyte's stock slipped 0.1%. Over the past 12 months, Concert's stock has tumbled 43%, Incyte shares have rallied 29%, the iShares Nasdaq Biotechnology ETF has climbed 13% and the S&P 500 has gained 11%.
Democrats and Republicans on the House Energy and Commerce Committee signaled Wednesday that they had reached deals on some bills that target soaring drug prices.
Shares of Advaxis Inc. plummeted 25% to pace all premarket declines Wednesday, after the biotechnology company's public offering of shares priced at a deep discount. The company said its offering of 2.5 million shares to the public priced at $4.00 a share, or 32% below Tuesday's split-adjusted closing price of $5.90. A 1-for-15 reverse stock split went into effect on March 29. The company expects proceeds of about $10 million from the offering, which it intends to use to fund research and development of its product pipeline. Advaxis is focused on the development of immunotherapy products. The share offering comes after the stock has more than doubled year to date through Tuesday (up 107%), but has plunged 76% over the past 12 months. In comparison, the iShares Nasdaq Biotechnology ETF has gained 17% year to date and the S&P 500 has advanced 14%.
Shares of ADMA Biologics Inc. rocketed 54% in very active premarket trade Tuesday, after the biopharmaceutical company said its ASCENIV treatment of primary humoral immunodeficiency disease (PIDD) was approved by the Food and Drug Administration. Trading volume jumped to 3.6 million shares, compared with the full-day average of about 577,000 shares, and enough to make the stock the most actively traded before the open. ADMA said late Monday that expect to have ASCENIV available for commercial launch during the second half of 2019. "With the receipt of ASCENIV's™ FDA approval, ADMA, at its sole option, can elect to access up to an additional $27.5M of available funding from Perceptive Advisors under ADMA's existing credit facility," said Chief Executive Adam Grossman. The stock has soared 77.3% year to date through Monday, while the iShares Nasdaq Biotechnology ETF has rallied 16.1% and the S&P 500 has gained 14.4%.
Shares of Aldeyra Therapeutics Inc. shot up 56% toward a 5-month high in premarket trade Tuesday, a day after closing at a 7-month low, after a phase 3 trial of the biotechnology company's allergic conjunctivitis treatment met its primary and secondary endpoints. Trading volume topped 440,000 shares, already more than the full-day average of about 310,000 shares. Aldeyra said it plans to meet with regulatory authorities in the second half of 2019 to discuss the results and remaining clinical requirements for potential submission of a new drug application (NDA) to the Food and Drug Administration. Separately, the company said it entered into a loan and security agreement with Hercules Capital Inc. that provides up to $60 million in financing. "The ALLEVIATE [trial] results suggest the potential of topical ocular reproxalap as a novel, safe, and effective therapeutic option that could be used to complement existing therapy before resorting to corticosteroids, which can lead to serious ocular toxicity," said Aldeyra Chief Medical Officer David Clark. The stock has lost 14.5% over the past 12 months while the iShares Nasdaq Biotechnology ETF has edged up 0.2% and the S&P 500 has gained 5.3%.
Shares of Curis Inc. rocketed 93% in very active premarket trade Monday, after the biotechnology company said it reached an agreement to sell a portion of royalties of its Erivedge cancer treatment for up to $135.7 million to funds managed by Oberland Capital Management LLC. Volume swelled to 1.8 million shares ahead of the open, compared with the full-day average of about 174,000 shares. Under terms of the deal, Curis received $65 million upfront, and is entitled to receive up to an additional $70.7 million in milestone payments if future royalties exceed pre-determined thresholds. In comparison, the company reported a third-quarter net loss of $7.22 million and revenue of $2.85 million. "We believe this structure provides Curis with substantial non-dilutive capital today, while retaining significant participation in the future upside potential of Erivedge," Curis Chief Executive James Dentzer said. "The proceeds of this transaction further strengthen our cash position as we fund our three lead therapeutic candidates to reach their near term development catalysts and beyond." Thes tock has tumbled 60% over the past 12 months through Friday, while the iShares Biotechnology ETF has tacked on 2.7% and the S&P 500 has gained 8.2%.
Biotech stocks are some of the most exciting investments on Wall Street. When one company develops a successful treatment for a complex condition, shares can surge overnight and attract buyout interest from Big Pharma. Case in point: Biotech giant Biogen (BIIB) imploded roughly 30% on Thursday after announcing it is canceling its Alzheimer’s drug efforts after poor drug trials.
Shares of Biogen Inc. bounced 1.7% in premarket trade Monday, after the drugmaker disclosed that it set a new $5.0 billion stock repurchase program, without an expiration date. The new program is in addition to the $1.7 billion remaining under the program set in August 2018. The new buyback announcement comes after the stock plummeted 32.4% to close Friday at the lowest level since June 2016, after the company said it would discontinue its phase 3 trials of its Alzheimer's treatment, citing results of an interim analysis of trial data. Based on Friday's stock closing price of $216.71, the total buyback authorization would represent about 30.92 million shares, or 15.7% of the shares outstanding. Biogen's stock has shed 16.7% over the past 12 months, while the iShares Nasdaq Biotechnology ETF has gained 2.7% and the S&P 500 has advanced 8.2%.
Biotech giant Biogen stock cratered 28% on Thursday, after the company announced that it would be pulling the plug on its ate-stage trial of its Alzeimer’s drug aducanumab.
Novocure Ltd. said Thursday Chief Science Officer Eilon Kirson will retire after about 7 years in the role, and 17 years with the company. The cancer treatment company said Kirson's retirement provides the opportunity to separate medical and scientific responsibilities. Uri Weinberg, vice president of clinical development, will assume responsibilities for preclinical and clinical development and regulatory affairs effective immediately, and Ely Benaim will join the company as chief medical officer effective April 1, assuming responsibilities for clinical operations, medical affairs and safety. The stock, which is still inactive in premarket trade has soared 67.8% over the past three months, while the iShares Nasdaq Biotechnology ETF has rallied 24.6% and the S&P 500 has climbed 16.9%.
Shares of Aerpio Pharmaceuticals Inc. plummeted 71% toward a record low in active trade Monday, after the biopharmaceutical company said a phase 2b study of its treatment for diabetic retinopathy failed to meet its primary endpoint of improvement over placebo. The stock was the biggest decliner listed on major U.S. exchanges, with volume reaching 5.5 million shares, or about 22 times the full-day average. Meanwhile, the company said the trial of its lead candidate AKB-9778 was found did to be safe and well tolerated and showed some encouraging in some secondary endpoints. "While we are disappointed in the primary endpoint results of this study, we are nevertheless encouraged by the fact that several other promising findings observed in our prior 3-month Phase 2a trial have been prospectively confirmed in this 1-year trial," said Chief Executive Stephen Hoffman. The company said it plans to provide an update on the status of AKB-9778 after a full analysis. The stock has now lost 37% over the past 3 months while the iShares Nasdaq Biotechology ETF has gained 16% and the S&P 500 has tacked on 11%.
Shares of Daré Bioscience Inc. rocketed 129% on very heavy volume toward a 13-month high in afternoon trade Monday, after the biopharmaceutical company announced positive findings for the use of its DARE-VVA1 product candidate in treating vulvar and vaginal atrophy (VVA). The stock was the biggest percentage gainer listed on major U.S. exchanges, even though it pared earlier gains of as much as 253%. Volume swelled to 37.8 million shares, compared with the full-day average of about 82,500 shares and enough to make the stock the most active on the Nasdaq exchange. The company said a self-administered vaginal suppository containing tamoxifen administered to four healthy postmenopausal women with VVA showed "significant improvements" in reducing vaginal pH and vaginal dryness, without significant absorption of tamoxifen. "If successful, DARE-VVA1 could be the first and only vaginally administered tamoxifen product approved by the FDA for the treatment of VVA in hormone-receptor positive breast cancer patients," the company said in a statement. The stock has now more than tripled year to date (up 218%), while the iShares Nasdaq Biotechnology ETF has climbed 18% and the S&P 500 has gained 13%.
Shares of PhaseBio Pharmaceuticals Inc. more than doubled in premarket trade Monday, soaring 112% toward a record high, after the biopharmaceutical company announced positive phase 1 trial results of PB2452, a reversal agent for the antiplatelet drug ticagrelor. The trial showed that the effects of PB2452 were immediate, with sustained reversal of ticagrelor antiplatelet effects without reports of drug-related serious adverse events. "The data support further evaluation of PB2452 for the reversal of the antiplatelet effects of ticagrelor in emergency situations involving major bleeding and to enable emergent or urgent surgery in patients," said Deepak Bhatt, executive director of Interventional Cardiovascular Programs at Brigham and Women's Hospital. The company is planning to initiate a phase 2a trial in the first half of this year. The stock, which went public in October, has lost 9.5% over the past three months through Friday, while the iShares Nasdaq Biotechnology ETF has run up 16% and the S&P 500 has gained 11%.