Pharma Stock Explodes After Massive Settlement, Earnings

The company also reported upbeat earnings results

Deputy Editor
Jul 27, 2022 at 10:55 AM
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Shares of Teva Pharmaceutical Industries Ltd (NYSE:TEVA) are exploding today, after the drugmaker agreed to pay up to $4.25 billion for its alleged role in the U.S. opioid crisis. Additionally, the company reported second-quarter earnings and revenue, with the former beating estimates by 12 cents and the latter in-line with forecasts. At last check, TEVA was up 18.7% to trade at $8.45.

Analysts have yet to stage a large-scale response, though BMO did cut its price target to $11 from $12. Coming into today, the majority of the brokerage bunch was neutral, with eight rating Teva Pharmaceutical stock a "hold," one a "strong sell" and two a "strong buy" recommendation.

Bullish options traders are taking an interest in TEVA today, with the 19,000 calls exchanged in the first half hour of trading amounting to 16 times the intraday average. The August 9 call is the most popular, followed distantly by the 9-strike call from the weekly 7/29 series. New positions are being opened at both contracts.

Today's positive price action has helped Teva Pharmaceuticals stock move back above its year-to-date breakeven even level, now sporting a 6.1% lead in 2022. TEVA is on track for its best monthly performance since January 2021, as well as its best daily performance on record.


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