The Drug Stock Higher on Asset Sale Rumors

TEVA stock has been on the rebound since November

Managing Editor
Dec 26, 2017 at 9:58 AM
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Drugmaker Teva Pharmaceutical Industries Ltd (NYSE:TEVA) has had a rocky year, culminating in drastic cuts to its workforce and suspended dividend payments. Today, the stock is generating buzz amid reports that Israel's biggest pharmacy chain, Super-Pharm, is in talks to buy a Teva plant. Below, we take a closer look at TEVA stock.

Super-Pharm will reportedly pay between $17 - $23 million for the Ashdod-based plant, and would continue to employ the plant's 70 workers. The news has sent TEVA stock up 2.8% to trade at $19.26 this morning, on pace for its highest close since mid-September. Since falling to a 17-year low of $10.85 on Nov. 2, TEVA has tacked on 78%.

Despite the equity's solid rebound over the past couple of months, analysts remain pessimistic. Of the 23 brokerage firms covering the drug name, 20 rate TEVA shares a "hold" or worse. However, recent options buyers have been upping the bullish ante. On the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), the stock's 50-day call/put volume ratio of 1.73 is higher than 87% of all other readings from the past year.

 

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