Biogen (BIIB) to buy Nightstar Therapeutics for $800 million
Biogen is buying London-based gene therapy company Nightstar Therapeutics for $800 million in an all-cash deal. They are offering $22.50 per share, a premium of about 69% to Nightstar's value.
“Ophthalmology is an emerging growth area for Biogen,” said Michel Vounatsos, Biogen’s chief executive officer. “Nightstar would accelerate our entry into ophthalmology by contributing two mid- to late-stage gene therapy assets.” Biogen said it plans to fund the acquisition through available cash.
BIIB in -2.85% downward trend, falling for three consecutive days on November 19, 2024
Moving lower for three straight days is viewed as a bearish sign. Keep an eye on this stock for future declines. Considering data from situations where BIIB declined for three days, in of 329 cases, the price declined further within the following month. The odds of a continued downward trend are .
Technical Analysis (Indicators)
Bearish Trend Analysis
The Aroon Indicator for BIIB entered a downward trend on November 29, 2024. This could indicate a strong downward move is ahead for the stock. Traders may want to consider selling the stock or buying put options.
Bullish Trend Analysis
The RSI Oscillator points to a transition from a downward trend to an upward trend -- in cases where BIIB's RSI Indicator exited the oversold zone, of 37 resulted in an increase in price. Tickeron's analysis proposes that the odds of a continued upward trend are .
The Stochastic Oscillator suggests the stock price trend may be in a reversal from a downward trend to an upward trend. of 61 cases where BIIB's Stochastic Oscillator exited the oversold zone resulted in an increase in price. Tickeron's analysis proposes that the odds of a continued upward trend are .
The Moving Average Convergence Divergence (MACD) for BIIB just turned positive on November 27, 2024. Looking at past instances where BIIB's MACD turned positive, the stock continued to rise in of 54 cases over the following month. The odds of a continued upward trend are .
Following a 3-day Advance, the price is estimated to grow further. Considering data from situations where BIIB advanced for three days, in of 263 cases, the price rose further within the following month. The odds of a continued upward trend are .
BIIB may jump back above the lower band and head toward the middle band. Traders may consider buying the stock or exploring call options.
The Tickeron Seasonality Score of (best 1 - 100 worst) indicates that the company is fair valued in the industry. The Tickeron Seasonality score describes the variance of predictable price changes around the same period every calendar year. These changes can be tied to a specific month, quarter, holiday or vacation period, as well as a meteorological or growing season.
The Tickeron Price Growth Rating for this company is (best 1 - 100 worst), indicating fairly steady price growth. BIIB’s price grows at a lower rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron SMR rating for this company is (best 1 - 100 worst), indicating slightly weaker than average sales and a marginally profitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
The Tickeron Valuation Rating of (best 1 - 100 worst) indicates that the company is significantly overvalued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (2.110) is normal, around the industry mean (5.632). P/E Ratio (26.955) is within average values for comparable stocks, (48.974). BIIB's Projected Growth (PEG Ratio) (8.807) is slightly higher than the industry average of (3.004). Dividend Yield (0.000) settles around the average of (0.164) among similar stocks. P/S Ratio (3.181) is also within normal values, averaging (3.643).
The Tickeron PE Growth Rating for this company is (best 1 - 100 worst), pointing to worse than average earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
The Tickeron Profit vs. Risk Rating rating for this company is (best 1 - 100 worst), indicating that the returns do not compensate for the risks. BIIB’s unstable profits reported over time resulted in significant Drawdowns within these last five years. A stable profit reduces stock drawdown and volatility. The average Profit vs. Risk Rating rating for the industry is 73, placing this stock worse than average.
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Fundamental Analysis Ratings
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General Information
a manufacturer of therapies for people living with neurological, autoimmune and hematologic disorders
Industry PharmaceuticalsMajor