Investors Buy Large Volume of Call Options on Astrazeneca (NYSE:AZN)

Astrazeneca Plc (NYSE:AZN) saw unusually large options trading activity on Monday. Stock investors bought 7,812 call options on the stock. This represents an increase of approximately 267% compared to the average daily volume of 2,130 call options.

Astrazeneca Price Performance

Shares of AZN traded down $14.97 during mid-day trading on Monday, reaching $154.67. The company had a trading volume of 6,902,852 shares, compared to its average volume of 2,577,601. The company has a market capitalization of $239.87 billion, a price-to-earnings ratio of 23.07, a P/E/G ratio of 1.47 and a beta of 0.24. 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’s 50 day simple moving average is $179.02 and its 200 day simple moving average is $187.83. Astrazeneca has a 1-year low of $145.79 and a 1-year high of $212.71.

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

Astrazeneca News Summary

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

Hedge Funds Weigh In On Astrazeneca

Several hedge funds and other institutional investors have recently bought and sold shares of AZN. Triumph Capital Management acquired a new stake in Astrazeneca during the third quarter worth approximately $25,000. MV Capital Management Inc. acquired a new stake in Astrazeneca in the fourth quarter worth $26,000. Mascoma Wealth Management LLC acquired a new position in shares of Astrazeneca during the first quarter valued at about $26,000. Roxbury Financial LLC bought a new position in shares of Astrazeneca during the 2nd quarter worth about $29,000. Finally, Eagle Bay Advisors LLC acquired a new stake in shares of Astrazeneca in the 4th quarter valued at about $30,000. Institutional investors and hedge funds own 20.35% of the company’s stock.

Analyst Upgrades and Downgrades

A number of analysts have commented on the stock. The Goldman Sachs Group reaffirmed a “buy” rating on shares of Astrazeneca in a report on Wednesday, July 1st. Weiss Ratings downgraded Astrazeneca from a “buy (b-)” rating to a “hold (c+)” rating in a report on Tuesday, July 28th. Jefferies Financial Group restated a “buy” rating on shares of Astrazeneca in a research report on Friday, June 26th. UBS Group reissued a “buy” rating on shares of Astrazeneca in a research note on Friday, April 10th. Finally, Wall Street Zen downgraded shares of Astrazeneca from a “buy” rating to a “hold” rating in a research note on Saturday. Twelve equities 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’s stock. According to MarketBeat, Astrazeneca has an average rating of “Moderate Buy” and a consensus target price of $211.00.

Astrazeneca Company Profile

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.