Regeneron Stock Gains After Goldman's "Buy" Recommendation

Goldman Sachs is bullish on Regeneron's product pipeline

by Patrick Martin

Published on Dec 14, 2018 at 10:02 AM

The shares of Regeneron Pharmaceuticals Inc (NASDAQ:REGN) are up 0.9% to trade at $381.87, after Goldman Sachs upgraded its rating on the stock to "buy" from "neutral," adding it to its Conviction Buy list in the process. The covering analyst is bullish on the company's pipeline of products.

The upbeat price action today could help Regeneron stock close out a third straight weekly win and distance itself above its year-to-date breakeven point around $376. REGN snagged an annual high of $416.49 back in late August, but has struggled since, gapping lower in October. Nevertheless the shares found support near the $330 level.

There is ample room for analysts to come aboard, should REGN keep climbing. Of the 17 brokerages covering the drug stock, 12 rate it a tepid "hold." At the same time, shorts have been heading for the hills, with short interest falling by 19.8% in the last two reporting periods to 2.10 million shares, the lowest since February. This still represents 3.5 times the average daily trading volume, though.

Options traders also are upbeat, albeit limited absolute volume. At the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), speculative players have bought to open 2,977 calls in the last 10 sessions, compared to just 484 puts. The resultant call/put volume ratio of 6.15 ranks in the 100th annual percentile, meaning calls have been bought to open over puts at a much quicker-than-usual clip.


a schaeffer's exclusive

5 NEW STOCK PICKS

We're celebrating 38 years with this FREE insider report!


 
 

Partnercenter


NEW! Explore Schaeffer’s Partners' deals and get connected to top online brokerages with deals tailored exclusively for our readers.  Get answers to your questions regarding transfer fees, commission rates, programs and available discounts related to online trading services.

MORE | MARKETstories


What's Next for the American Wealth Gap
Porter Stansberry is predicting a major change in the American economic system.
RBS Stock Rises on New CEO Appointment
Alison Rose will be the first woman to serve as CEO to a major British lender
2 Energy Stocks Snap Back After Heavy Losses
Energy stocks CRC and MDR are rallying back from brutal selling earlier in the week
How the 2020 Election Will Affect the U.S. Economy
The 2020 election could see some major changes in the American economic system.