Q2 STOCKS TO BUY

Celgene Stock Dips Amid Buyout Rumors

The pharma stock suffered two huge bear gaps in October

Managing Editor
Jan 17, 2018 at 9:56 AM
facebook X logo linkedin


Drug stock Celgene Corporation (NASDAQ:CELG) is trading 1.6% lower at $103.13, after the Wall Street Journal reported the company is in talks to buy Juno Therapeutics (JUNO) (subscription required). According to the Journal, CELG -- who is already the largest shareholder of JUNO stock -- could produce a deal in the coming weeks. This comes after Celgene last week said it would buy Impact Biomedicines for around $7 billion.

Celgene stock has not performed well in recent months, suffering two severe bear gaps in mid-October, which eventually lead to the stock's Oct. 26 52-week low of $94.55. Overall, the shares have shed almost one-quarter of their value in the past three months alone, and have recently been testing the 50-day moving average.

Short interest has seen a surge amid this weakness, rising more than 18% in the past two reporting periods, but accounts for just 1.75% of the stock's total available float. This would suggest there's plenty of room for more bears to jump aboard, which could result in additional tailwinds for Celgene stock.

Despite its recent falls, most analysts have remained optimistic towards CELG stock. Of the 29 analysts in coverage, 16 of them have handed out "strong buy" ratings, and there are zero "sells" on the books. As contrarians, we would note the possibility of bearish analyst attention, given the security's lackluster technical performance.

Meanwhile, options traders are active following the M&A buzz. Call and put volume are both running at well above the expected pace so far, projecting to smash average daily volumes. The most popular option early on is the January 105 call, though it's unclear what strategy traders are utilizing here.
 
 

“Buy This Stock Now!” - Expert Who Called 11x On TSLA

He called a rare 11x on Tesla…

But now, thanks to Elon & Trump’s new alliance…

He says there’s a new opportunity that could be 1,000x BIGGER than Tesla – and it could completely revolutionize a $23 Trillion market.

It’s trading for less than $5 per share right now…

But it won’t be under the radar for long.

Discover The 1,000x Bigger Elon Opportunity Here

GRAND SLAM COUNTDOWN

 
 

Featured Articles from Trusted Partners:

👀Learn How Dividends Create Passive Income for Life
Receive $200 Off Motley Fool Epic. The Motley Fool Epic $299 discounted offer is based on $499/year list price. Introductory promotion for new members only. Take control of your money and your portfolio with Motley Fool Epic.

💵New Income System Could Pay You $4,243 Monthly
You could collect an average of $4,243 per month starting as early as next week with a new payout system for income investors. New registrations are being accepted for investors who want to be in a position to start with their first payout next week.

🚀Easy 92% Crypto Dividends (No Coins Required)
COIN stock doesn't pay a dividend... But there's actually a new way to collect a massive dividend that's indirectly based on the stock and offers a terrific monthly income (currently yielding nearly 92% on a forward basis).

🤝Free Advisor Match with Wiseradvisor.com
Don't leave your retirement to chance! Get matched with a trusted financial expert for FREE and make the most of your tax refund. Get started now.

⚠️Dennis Quaid's #1 Warning for Americans
Here's the thing: life doesn't come with guarantees. The economy shifts, markets stumble, and years of hard work could slip through your fingers like sand. But it doesn't have to be that way for you. So request a free copy of this Gold & Silver Guide that will arrive right to your doorstep when you act now.

 

 
 

Follow us on X, Follow us on Twitter