Astrazeneca (NYSE:AZN) Shares Gap Down – Should You Sell?

Astrazeneca Plc (NYSE:AZN)’s stock price gapped down prior to trading on Monday . The stock had previously closed at $169.64, but opened at $157.16. Astrazeneca shares last traded at $156.3930, with a volume of 2,482,363 shares trading hands.

Key Astrazeneca News

Here are the key news stories impacting Astrazeneca this week:

• Positive Sentiment: A combination could significantly expand AstraZeneca’s scale, product portfolio and presence in the U.S., potentially creating long-term cost and revenue synergies. Bristol Myers Squibb shares rose as investors focused on the possibility of a takeover premium. Bristol Myers Squibb Stock Soars on Report of $400 Billion Merger Talks With AstraZeneca
• Neutral Sentiment: The discussions are reportedly exploratory, and there is no certainty that the companies will reach an agreement. The reports originated with the Financial Times and cited people familiar with the matter. AstraZeneca holds talks with Bristol Myers Squibb on potential megadeal
• Negative Sentiment: Investors appear concerned that acquiring Bristol Myers Squibb would be expensive and difficult to integrate. Analysts questioned the strategic rationale, with Jefferies reportedly describing the prospect as “more than a head scratcher.” The transaction could also require substantial new debt, stock issuance or both, increasing financial and execution risk. Analysts baffled by AstraZeneca’s interest in Bristol Myers Squibb
• Negative Sentiment: The merger reports overshadowed AstraZeneca’s otherwise solid recent earnings performance, which included quarterly EPS above consensus and year-over-year revenue growth. The market is instead pricing in uncertainty surrounding deal valuation, financing, regulatory approval and potential shareholder dilution. AstraZeneca shares drop after report on merger talks

Analyst Ratings Changes

A number of equities analysts recently issued reports on AZN shares. Morgan Stanley reissued an “overweight” rating on shares of Astrazeneca in a report on Wednesday, April 8th. Jefferies Financial Group reiterated a “buy” rating on shares of Astrazeneca in a research report on Friday, June 26th. Wall Street Zen cut Astrazeneca from a “buy” rating to a “hold” rating in a research note on Saturday. Sanford C. Bernstein restated a “buy” rating on shares of Astrazeneca in a research note on Monday, May 4th. Finally, The Goldman Sachs Group reaffirmed a “buy” rating on shares of Astrazeneca in a report on Wednesday, July 1st. Twelve analysts have rated the stock with a Buy rating, two have assigned a Hold rating and one has assigned a Sell rating to the stock. According to MarketBeat, Astrazeneca currently has a consensus rating of “Moderate Buy” and a consensus target price of $211.00.

Astrazeneca Trading Down 8.1%

The business has a 50 day simple moving average of $179.02 and a 200-day simple moving average of $187.83. The company has a debt-to-equity ratio of 0.47, a quick ratio of 0.67 and a current ratio of 0.89. The stock has a market capitalization of $241.87 billion, a P/E ratio of 23.13, a price-to-earnings-growth ratio of 1.47 and a beta of 0.24.

Astrazeneca (NYSE:AZN) last posted its quarterly earnings data on Monday, July 27th. The company reported $2.63 EPS for the quarter, topping analysts’ consensus estimates of $2.50 by $0.13. The company had revenue of $15.38 billion for the quarter, compared to the consensus estimate of $15.44 billion. Astrazeneca had a return on equity of 31.45% and a net margin of 17.02%.The company’s quarterly revenue was up 6.4% compared to the same quarter last year. During the same quarter in the previous year, the business earned $2.17 EPS. On average, analysts predict that Astrazeneca Plc will post 10.22 EPS for the current year.

Institutional Investors Weigh In On Astrazeneca

Institutional investors and hedge funds have recently bought and sold shares of the business. Triumph Capital Management acquired a new position in shares of Astrazeneca in the 3rd quarter worth approximately $25,000. MV Capital Management Inc. acquired a new stake in Astrazeneca during the fourth quarter valued at approximately $26,000. Mascoma Wealth Management LLC acquired a new stake in Astrazeneca during the first quarter valued at approximately $26,000. Roxbury Financial LLC bought a new stake in Astrazeneca during the second quarter worth approximately $29,000. Finally, Eagle Bay Advisors LLC bought a new stake in Astrazeneca during the fourth quarter worth approximately $30,000. 20.35% of the stock is owned by institutional investors and hedge funds.

About Astrazeneca

AstraZeneca plc is a global biopharmaceutical company headquartered in Cambridge, England. Formed through the 1999 merger of Sweden’s Astra AB and the UK’s Zeneca Group, the company researches, develops, manufactures and commercializes prescription medicines across a range of therapeutic areas. AstraZeneca positions itself as R&D-driven, investing in discovery science, clinical development and regulatory processes to bring new therapies to market.

The company’s commercial portfolio and late-stage pipeline emphasize oncology, cardiovascular, renal and metabolic (CVRM) diseases, and respiratory and immunology.