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.

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