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

Shares of Astrazeneca Plc (NYSE:AZN) gapped down before the market opened 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.

Astrazeneca News Summary

Here are the key news stories impacting Astrazeneca this week:

• Positive Sentiment: Traders bought 7,812 AZN call options, about 267% above the typical daily volume of 2,130 contracts. The activity may signal that some investors expect a rebound or believe the market has overreacted to the merger concerns. Traders Purchase High Volume of Call Options on Astrazeneca
• Positive Sentiment: AstraZeneca announced a multi-year collaboration with SOPHiA GENETICS to develop and commercialize two companion-diagnostic programs for precision oncology therapies. The agreement could support the company’s targeted-cancer portfolio, although financial terms were not disclosed. SOPHiA GENETICS Enters Collaboration to Develop Companion Diagnostics for Precision Oncology Therapies
• Neutral Sentiment: Analysts are divided over the reported AstraZeneca–Bristol Myers Squibb transaction. Citi believes much of the deal risk is already reflected in AZN’s valuation, while Deutsche Bank sees strategic similarities to AstraZeneca’s Alexion acquisition. Conversely, RBC reportedly considers a completed deal unlikely because of divergent shareholder views. Brokers split on AstraZeneca merger talk as shares recover some ground
• Negative Sentiment: The potential roughly $400 billion merger has raised concerns that AstraZeneca could overpay for Bristol Myers, assume substantial debt, dilute shareholders, and take on a slower-growth portfolio. Those concerns triggered the stock’s steep decline and remain the primary driver of investor sentiment. As portfolio erodes, BMS stands to gain a lot from rumored AstraZeneca merger
• Negative Sentiment: Pomerantz LLP is investigating potential claims on behalf of AstraZeneca investors. The announcement adds legal and reputational uncertainty, though it does not establish wrongdoing or indicate that a lawsuit has been filed. Pomerantz Law Firm Investigates Claims On Behalf of Investors of AstraZeneca

Analysts Set New Price Targets

A number of analysts recently weighed in on AZN shares. Weiss Ratings lowered shares of Astrazeneca from a “buy (b-)” rating to a “hold (c+)” rating in a report on Tuesday, July 28th. UBS Group reaffirmed a “buy” rating on shares of Astrazeneca in a report on Friday, April 10th. The Goldman Sachs Group reiterated a “buy” rating on shares of Astrazeneca in a research report on Wednesday, July 1st. Morgan Stanley reissued an “overweight” rating on shares of Astrazeneca in a research note on Wednesday, April 8th. Finally, Jefferies Financial Group restated a “buy” rating on shares of Astrazeneca in a research report on Friday, June 26th. Twelve equities research analysts have rated the stock with a Buy rating, two have issued a Hold rating and one has assigned a Sell rating to the company’s stock. Based on data from MarketBeat.com, the company currently has a consensus rating of “Moderate Buy” and an average target price of $211.00.

Astrazeneca Price Performance

The company has a 50-day moving average price of $177.81 and a 200-day moving average price of $187.53. The firm has a market capitalization of $241.61 billion, a P/E ratio of 23.29, a price-to-earnings-growth ratio of 1.36 and a beta of 0.26. The company has a debt-to-equity ratio of 0.47, a quick ratio of 0.67 and a current ratio of 0.89.

Astrazeneca (NYSE:AZN) last released its earnings results on Monday, July 27th. The company reported $2.63 earnings per share for the quarter, beating the consensus estimate of $2.50 by $0.13. The firm had revenue of $15.38 billion for the quarter, compared to analyst estimates 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% on a year-over-year basis. During the same quarter in the prior year, the firm posted $2.17 earnings per share. On average, sell-side analysts predict that Astrazeneca Plc will post 10.22 earnings per share for the current year.

Hedge Funds Weigh In On Astrazeneca

A number of hedge funds and other institutional investors have recently made changes to their positions in AZN. Triumph Capital Management acquired a new stake in Astrazeneca during the 3rd quarter worth $25,000. MV Capital Management Inc. bought a new stake in shares of Astrazeneca in the fourth quarter worth about $26,000. Mascoma Wealth Management LLC bought a new stake in shares of Astrazeneca in the first quarter worth about $26,000. Roxbury Financial LLC acquired a new stake in shares of Astrazeneca during the second quarter worth about $29,000. Finally, Eagle Bay Advisors LLC bought a new position in shares of Astrazeneca during the 4th quarter valued at about $30,000. 20.35% of the stock is owned by institutional investors.

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.