Regeneron Stock Gains After Goldman's "Buy" Recommendation

Goldman Sachs is bullish on Regeneron's product pipeline

Managing Editor
Dec 14, 2018 at 10:02 AM
facebook twitter linkedin


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.

 

If you are not making money with options, you aren’t buying options like this…

There is no options strategy that more perfectly approaches trading the fastest moving and most volatile stocks available in the marketplace than this one. In fact, there is no strategy that better utilizes put options for optimal returns and a real trading edge over other traders in the exact same market. New options traders fail out at an incredible rate without proper trade research, execution timing, and option picking. Capitalize on Schaeffer’s 100+ years of options trading excellence with the most coveted product launch in company history. Don't waste another second... join us right now before the next round of trades are released!

Schaeffer's Investment Research Master Portfolio Trial
 


 


 
Special Offers from Schaeffer's Trading Partners