Astrazeneca (NYSE:AZN) Sees Unusually-High Trading Volume – Should You Buy?

Astrazeneca Plc (NYSE:AZN) shares saw an uptick in trading volume on Wednesday . Approximately 2,583,401 shares traded hands during mid-day trading, a decline of 4% from the previous session’s volume of 2,680,922 shares.The stock last traded at $162.03 and had previously closed at $155.62.

Astrazeneca News Roundup

Here are the key news stories impacting Astrazeneca this week:

• Positive Sentiment: A senior source told Reuters that there are “no discussions” between AstraZeneca and Bristol Myers Squibb, while a separate report said AstraZeneca denied the merger speculation. The statements have eased investor concerns about a potential transaction reportedly valued near $400 billion. Reuters report on AstraZeneca and Bristol Myers merger discussions
• Positive Sentiment: Investors also appear to be positioning for a rebound: traders purchased unusually high call-option volume in AstraZeneca, with activity reported at several times its typical level. This signals bullish short-term speculation, although options activity is not a fundamental change. High-volume AstraZeneca call options report
• Neutral Sentiment: AstraZeneca announced a multi-year collaboration with SOPHiA GENETICS to develop and commercialize two companion diagnostics supporting precision-oncology therapies. The agreement could strengthen AstraZeneca’s targeted-cancer treatment infrastructure, but financial terms and near-term revenue effects were not disclosed. SOPHiA GENETICS and AstraZeneca collaboration announcement
• Negative Sentiment: The merger report triggered a sharp selloff earlier in the week because AstraZeneca investors viewed a Bristol Myers transaction as potentially expensive and value-destructive. Analysts remain divided over the strategic rationale, and Pomerantz LLP has announced an investigation into potential investor claims related to AstraZeneca. Pomerantz AstraZeneca investor investigation

Analyst Ratings Changes

A number of equities research analysts have recently commented on the company. Morgan Stanley restated an “overweight” rating on shares of Astrazeneca in a research report on Wednesday, April 8th. UBS Group reiterated a “buy” rating on shares of Astrazeneca in a research report on Friday, April 10th. Sanford C. Bernstein reissued a “buy” rating on shares of Astrazeneca in a report on Monday, May 4th. HSBC cut Astrazeneca from a “buy” rating to a “hold” rating in a research report on Monday, July 13th. Finally, DZ Bank raised Astrazeneca from a “neutral” rating to a “buy” rating in a research note on Wednesday, April 29th. Twelve research analysts have rated the stock with a Buy rating, two have issued a Hold rating and one has given a Sell rating to the company. According to MarketBeat.com, the company has a consensus rating of “Moderate Buy” and an average target price of $211.00.

Astrazeneca Trading Up 4.1%

The company has a 50 day simple moving average of $177.81 and a 200 day simple moving average of $187.53. 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 company has a market capitalization of $251.24 billion, a PE ratio of 24.24, a price-to-earnings-growth ratio of 1.36 and a beta of 0.26.

Astrazeneca (NYSE:AZN) last announced its earnings results on Monday, July 27th. The company reported $2.63 EPS for the quarter, beating analysts’ consensus estimates of $2.50 by $0.13. The business had revenue of $15.38 billion during the quarter, compared to analysts’ expectations of $15.44 billion. Astrazeneca had a return on equity of 31.45% and a net margin of 17.02%.The business’s revenue was up 6.4% compared to the same quarter last year. During the same quarter in the prior year, the firm earned $2.17 earnings per share. Analysts anticipate that Astrazeneca Plc will post 10.22 earnings per share for the current year.

Institutional Inflows and Outflows

Hedge funds and other institutional investors have recently added to or reduced their stakes in the company. Ballast Inc. purchased a new position in Astrazeneca in the 2nd quarter valued at $270,000. Investors Research Corp purchased a new stake in shares of Astrazeneca during the second quarter worth $122,000. Spinnaker Investment Group LLC raised its position in shares of Astrazeneca by 3.8% in the second quarter. Spinnaker Investment Group LLC now owns 2,899 shares of the company’s stock valued at $550,000 after buying an additional 106 shares during the last quarter. Fulton Bank N.A. raised its position in shares of Astrazeneca by 13.7% in the second quarter. Fulton Bank N.A. now owns 8,294 shares of the company’s stock valued at $1,573,000 after buying an additional 999 shares during the last quarter. Finally, Wealthcare Advisory Partners LLC purchased a new position in shares of Astrazeneca in the second quarter worth about $2,296,000. Hedge funds and other institutional investors own 20.35% of the company’s stock.

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.