Stock of the Day

September 20, 2022

Regeneron Pharmaceuticals (REGN)

$790.74
-$5.60 (-0.7%)
Market Cap: $81.41B

About Regeneron Pharmaceuticals

Regeneron Pharmaceuticals, Inc. discovers, invents, develops, manufactures, and commercializes medicines for treating various diseases worldwide. The company's products include EYLEA injection to treat wet age-related macular degeneration and diabetic macular edema; myopic choroidal neovascularization; diabetic retinopathy; neovascular glaucoma; and retinopathy of prematurity. It also provides Dupixent injection to treat atopic dermatitis and asthma in adults and pediatrics; Libtayo injection to treat metastatic or locally advanced cutaneous squamous cell carcinoma; Praluent injection for heterozygous familial hypercholesterolemia or clinical atherosclerotic cardiovascular disease in adults; REGEN-COV for covid-19; and Kevzara solution for treating rheumatoid arthritis in adults. In addition, the company offers Inmazeb injection for infection caused by Zaire ebolavirus; ARCALYST injection for cryopyrin-associated periodic syndromes, including familial cold auto-inflammatory syndrome and muckle-wells syndrome; and ZALTRAP injection for intravenous infusion to treat metastatic colorectal cancer; and develops product candidates for treating patients with eye, allergic and inflammatory, cardiovascular and metabolic, infectious, and rare diseases; and cancer, pain, and hematologic conditions. It has collaboration with Mammoth Biosciences, Inc. to research, develop and commercialize in vivo CRISPR-based gene editing therapies for multiple tissues and cell types. The company was incorporated in 1988 and is headquartered in Tarrytown, New York.

Regeneron Pharmaceuticals Bull Case

Here are some ways that investors could benefit from investing in Regeneron Pharmaceuticals, Inc.:

  • Regeneron Pharmaceuticals, Inc. recently reported positive 84-week data for its newly approved drug Pasatru, which demonstrated zero new heterotopic ossification lesions in patients with fibrodysplasia ossificans progressiva, a rare disease, providing strong evidence of long-term efficacy and supporting the commercial viability of this first-in-class treatment.
  • The company significantly outperformed market expectations in its most recent quarterly earnings report, delivering earnings per share of $14.29 against a consensus estimate of $10.16 and generating revenue of $4.29 billion, which exceeded the projected $3.82 billion, indicating robust financial health and strong demand for its therapeutic portfolio.
  • With the current stock price at $778.36, Regeneron Pharmaceuticals, Inc. trades at a price-to-earnings ratio of 19.24, which is notably lower than the median multiple of the S&P 500, suggesting that the stock may be undervalued relative to broader market peers despite its strong growth trajectory and recent earnings beats.
  • Analyst sentiment remains positive with a consensus rating of Moderate Buy and an average price target of $834.24, reflecting institutional confidence in the company's future performance, particularly as firms like UBS and Jefferies have recently raised their targets or initiated buy ratings based on the potential of key products like Dupixent.
  • Regeneron Pharmaceuticals, Inc. maintains a low beta of 0.16, indicating that its stock price is significantly less volatile than the overall market, which can provide a defensive characteristic for investors seeking stability in their biotechnology holdings during periods of market uncertainty.

Regeneron Pharmaceuticals Bear Case

Investors should be bearish about investing in Regeneron Pharmaceuticals, Inc. for these reasons:

  • Corporate insiders have engaged in consistent selling activity, with directors and executives such as Kathryn Guarini and Huda Zoghbi selling thousands of shares in recent months, which may signal a lack of confidence in the stock's near-term upside or a desire to diversify personal holdings.
  • The stock is currently trading below its 50-day moving average of $790.91, suggesting that short-term momentum has weakened after a period of volatility, including a significant gap down in May 2026, which could indicate technical resistance or a cooling of investor enthusiasm.
  • Regeneron Pharmaceuticals, Inc. has a relatively low dividend yield of 0.49%, which may be insufficient to attract income-focused investors who prefer higher payout ratios, especially when compared to other mature pharmaceutical companies that offer more substantial cash returns.
  • Some institutional investors, such as Generate Investment Management Ltd, have significantly reduced their positions in the third quarter, trimming holdings by 74.9%, which could reflect a strategic shift away from the stock by large capital allocators who may be reassessing its risk-reward profile.
  • The company faces ongoing competition in the biotechnology sector, and while it has strong products, the high development costs and the risk of patent expirations or new competitor entries could pressure future margins and growth rates, requiring continuous innovation to maintain its market position.

Why These 3 Stocks Are Off to Hot September Starts

Written By MarketBeat Staff on 9/13/2022

Why These 3 Stocks Are Off to Hot September Starts

Could this be it? The U.S. stock market hasn’t strung together back-to-back winning months since a seven-month run that ended August 2021. A year later, the S&P 500 finds itself mired in an up and down pattern that began in February and has made it difficult for any positive momentum to take hold.

Off to a good start in September, investors are hoping this week’s inflation readings and other key data releases point to a resilient economy destined for better days on the other side of the Fed’s inflation battle. 

The hottest stocks out of the September gate have included some unlikely names that have slumped in 2022. Let’s look at what is behind the surprise rise in these three names—and whether they can continue to pace this month’s market rally. 

Why is Regeneron Pharmaceuticals Stock Up? 

Regeneron Pharmaceuticals, Inc. (NASDAQ: REGN) gapped up nearly $100 on Thursday (9/8) and climbed as high as $754 the next day. The stunning late week rally came when the stock was hovering near a 52-week low. The biotech company enters this week having reversed not just to a 52-week high but also to an all-time high.

The rally was sparked by news that Regeneron’s Aflibercept drug candidate met its primary endpoints in a pair of global trials. The first study involved patients with diabetic macular edema (DME), an eye complication commonly observed in people with diabetes. The second trial of wet age-related macular degeneration (wAMD) patients achieved significant vision gains with a longer dosing interval of Aflibercept, which is also known by its brand name Eylea.

Regenergon offered a triple dose of good news when it also announced that Dupixent demonstrated significant improvements in patients with an inflammatory skin disease called prurigo nodularis. Dupixent, which is under priority FDA review, is seeking to become the first approved medicine for the indication.

This week Regeneron has picked up where it left off by reporting positive data around two of its oncology candidates. There is suddenly a ton of momentum in this stock driven by Regeneron’s progressing pipeline.  When combined with analyst upgrades, this could lead to more record highs in the months ahead.

Has Snap Stock Bottomed?

Snap Inc. (NYSE: SNAP) is up 16% month-to-date and on track for its first two-month winning streak of the year. The operator of the trendy Snapchat social media app released an investor update at the end of August that the market found to be better than feared amid fierce competition from TikTok and others.

For the first two months of the third quarter, Snap’s revenue growth was reported to be up 8% year-over-year despite the challenging macro backdrop and competitive pressures. This showed that Snap may not be done growing just yet and that profitability may actually be attainable in the not so distant future. Management also outlined a plan to reduce costs by an annualized $500 million by cutting personnel, fixed content, and other expenses.

Meanwhile, Snap is leaning on innovation to drive better top line performances as its flagship product faces slowing growth in the U.S. and soft adoption trends in international markets. Snapchat+, Spotlight, and Snap Map are slated to be new revenue contributors in the quarters ahead and help offset the anticipated pause in digital ad spending. Further down the road, a push into augmented reality is positioning the company for long-term growth.

With the path to profitability a bit less cloudy, optimism around Snap’s revival appears to be building. Encouraged by management’s bullish financial targets for FY23, Wall Street has grown more bullish themselves. Last week three analysts called Snap a buy with price targets in the $15 to $22 range.

What Does Bausch Health Companies Do?

Bausch Health Companies Inc. (NYSE: BHC) is a Canada-based developer of a range of branded and generic pharmaceuticals. Its primary focuses are gastroenterology, hepatology, neurology, and dermatology. 

Last week, the company issued a press release about its Salix Pharmaceuticals gastroenterology unit that was greeted with a sigh of relief and buying activity from investors. It helped clarify the FDA’s tentative approval of rifaximin, a generic version of Bausch’s xifaxan developed by U.S.-based Norwich Pharmaceuticals. Since it was a Paragraph III filing that Norwich submitted to the FDA, the competitor will not be able to get full approval to market its drug until the patents for Bausch’s drug expire in July 2029.

Bausch shares rallied 10% on Friday in response to the clarification and with the support of the broader market uptrend. They have run more than 20% already in September and regained the all-important 50-day moving average line in above average volume. Bargain hunting combined with a spat of insider buying suddenly have Bausch looking healthy again.

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