Bristol Myers buying RayzeBio, FedEx buyback: Trending tickers

FedEx (FDX) shares rose after the shipping giant announced a $1 billion accelerated share buyback plan.

Shares of RayzeBio (RYZB) jumped 100% after it was announced the company was being acquired by Bristol Myers Squibb (BMY) in a $4.1 billion deal. It's Bristol Myers' second deal in less than a week. On Friday, the company announced it was acquiring Karuna Therapeutics (KRTX) in a $14 billion deal.

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Video Transcript

- Let's talk about FedEx as well. Those shares are edging higher today after an announced a $1 billion accelerated share repurchase program. The shares up 1.7%. The company has this repurchase agreement through Mizuho Markets Americas. They're going to get an initial share delivery of about 3.2 million shares on December 28.

We already knew that FedEx was going to be buying back shares. Now we just learned that it's sort of doing this push here. And this is after the stock recently took a big tumble following its last earnings report. So now coming back in here to support the shares.

- Listen, to your point, it's been a strong year FedEx. You're going to end the year up here about 45%. But they did offer that report, that disappointing-- it really was the outlook, that Q2 profit. It came in below consensus. And you saw the Street really focused on the Express division, which was challenged with these slowing volumes. I remember some analysts called the guidance vague. On the other hand, as we exit the year here, lots of bullishness still on this name, Julie. Most say buy it here at these levels. You've got 22 buys, 14 holds, no sells on FedEx.

- Yeah. There are still some questions around the Express business in particular. That's where there was some weakness in the quarter and in the outlook. So that's something that the investors are going to want more information on going into 2024.

- Yep. For sure. All right. Let's wrap it up here with shares of-- let's see.

- Radiopharmaceutical.

- Radiopharmaceutical. Thank you, Julie.

- It's a new thing. Rayzebio rocketing higher today after news it's being acquired by Bristol-Myers. Squibb for $4.1 billion. Second acquisition for Bristol-Myers in a week. So pulling out the checkbook again, Bristol-Myers, this time-- so this is about 4 billion. 62.50 a share. Looks like the transaction is expected to close in the first half of next year. It's going to be dilutive to Bristol's adjusted earnings next year. And it looks like they're going to-- Bristol will finance the deal mostly with new debt. And from what I've been reading here, so this is about targeting different tumors with these kind of radioactive drugs.

- Right. Radiopharmaceuticals, which was a new term for me too in reading up on it today, that basically what this class of drugs tries to do is target the cancer without harming the tissue around where the cancer is, which has been something that is difficult for the oncology industry to do.

And so Truist Securities saying in a note that this is a clear signal that pharma is hot on radiopharmaceuticals and that raised bio, according to Truist, represents meaningful opportunities for Bristol. But the Bristol story itself is also quite interesting that it has been on this acquisition spree, announcing that deal just last week, and also announcing the acquisition of Mirati Therapeutics back in October for $4.8 billion, which is another maker of cancer-fighting drugs.

So Bristol has really been on this acquisition spree here under its new CEO Chris Berner. What's also interesting, according to another analyst over at William Blair, Matt Phipps, he is saying that because of this spending spree that Bristol has been building up more debt and that they say, recent business development does push the company's debt burden to likely near-term limits. So maybe we're going to see a little bit-- now that they've done this spree, maybe there's going to be a little bit of a breather.

- It is interesting because-- so target medication to tumors, as you know, to kind of spare surrounding tissues, that has been a real focal point for these companies. It's not just Bristol-Myers. You saw Eli Lilly made a purchase in that area. Pfizer made a big one when they went after Seagen. As you try to look ahead now to 2024 where you think the activity is going to be, maybe it'll be this or maybe is it neuroscience or weight loss drugs. But the sector's been red hot.

- Well we know it's going to be weight loss drugs. I guess it's just what else is it going to be.