Shockwave Medical Stock Rises After Johnson & Johnson Buyout

SWAV is brushing off a pair of downgrades after the event

Deputy Editor
Apr 5, 2024 at 11:05 AM
facebook X logo linkedin


Shockwave Medical Inc (NASDAQ:SWAV) is in the spotlight today, after blue-chip pharmaceutical giant Johnson & Johnson (JNJ) announced it would buy the company for $13.1 billion, boosting its portfolio of cardiovascular disease treatment devices. SWAV was last seen up 1.8% at $325.77 after the news, while JNJ is down 0.07% at $152.38.

SWAV received a pair of bear notes in response. Needham downgraded the stock to "hold" from "buy," while Piper Sandler slashed its rating to "neutral" from "overweight." Of the 12 analysts in coverage, eight now carry a "hold" or worse rating, with four a "buy" or better. 

It's natural that analysts would be hesitant to expect more upside for Shockwave Medical stock, as it's already up 70.8% in 2024. The 20-day moving average helped guide the stock higher this year, and it's remained near its March 28 record high of $331.58, with potential support arising at the $320 level. 

SWAV's typically quiet options pits have already seen 4.2 times the average daily options volume today. The May 340 call is the most popular, where new positions are being opened. These traders are in luck, as the equity is seeing attractively priced premium at the moment, per its Schaeffer's Volatility Index (SVI) of 42%, which ranks in the low 18th percentile of its annual range. 

 

Target Effortless Triple-Digit Gains Every Sunday Evening For Life!

This is your chance to triple your profit potential on Sunday evenings, without spending all your free time watching the market.

On Sundays, as a Weekend Plus subscriber, you’ll get up to 6 trades every Sunday, each targeting gains of 200% or more.

Start targeting gains like the ones our subscribers have seen recently, including:

213.3% GAIN on AutoNation calls
100.0% GAIN on Monster Beverage calls
100.4% GAIN on Walgreens Boots Alliance puts
100.4% GAIN on ON Semiconductor calls
257.7% GAIN on Dell calls

101.0% GAIN on Apollo Global Management calls
103.6% GAIN on JP Morgan  Chase calls
105.3% GAIN on DraftKings calls
101.3% GAIN on Airbnb calls
203.0% GAIN on Shopify calls
102.0% GAIN on Cboe Global Markets calls
100.9% GAIN on Boeing calls
102.1% GAIN on Microsoft puts
102.3% GAIN on First Solar calls
101.5% GAIN on PulteGroup calls
101.0% GAIN on Apple calls
209.4% GAIN on NXP Semiconductors calls
100.8% GAIN on Uber Technologies calls
100.4% GAIN on Academy Sports and Outdoors puts
102.2% GAIN on Trade Desk calls
100.8% GAIN on DoorDash calls
100.0% GAIN on Camping World Holdings puts
100.0% GAIN on Cboe Global Markets calls
100.2% GAIN on C3.ai calls
238.5% GAIN on Oracle calls

 
 
 


 
 

Rainmaker Ads CGI