Regeneron Pharmaceuticals Receives Strong-Buy Rating from HSBC

Shares of Regeneron Pharmaceuticals (NASDAQ: REGN) were upgraded to a strong-buy rating by HSBC Global Research in a report released on October 30, 2023. This upgrade comes amid a series of positive evaluations from various financial analysts regarding the biopharmaceutical company’s stock.

In addition to HSBC’s assessment, Truist Financial initiated coverage on Regeneron, assigning a “buy” rating along with a price target of $798.00. Similarly, Sanford C. Bernstein increased its price target from $753.00 to $781.00, maintaining an “outperform” rating. On October 29, Citigroup raised its price objective from $660.00 to $700.00, also giving the stock a “buy” rating. The Royal Bank of Canada adjusted its target price from $704.00 to $708.00 with a “sector perform” rating, and Jefferies Financial Group increased its price target from $813.00 to $831.00, maintaining a “buy” recommendation.

Evaluation from analysts indicates a consensus rating of “Moderate Buy” for Regeneron, with an average target price of $757.91. Out of 28 analysts, three have rated the stock as a strong buy, sixteen as a buy, eight as hold, and one as sell.

Strong Quarterly Performance

Regeneron Pharmaceuticals recently announced its quarterly earnings on October 28, 2023. The company reported an earnings per share (EPS) of $11.83, surpassing the consensus estimate of $9.73 by $2.10. Revenue for the quarter reached $3.75 billion, exceeding the expected $3.57 billion. Furthermore, Regeneron achieved a net margin of 32.13% and a return on equity of 13.76%, reflecting a 0.9% revenue increase compared to the same quarter last year.

Forecasts suggest that the company is expected to post an EPS of $35.92 for the current fiscal year.

Dividend Announcement and Insider Activity

On another note, Regeneron Pharmaceuticals announced a quarterly dividend of $0.88, scheduled to be paid on December 5, 2023, to stockholders on record as of November 20, 2023. This dividend reflects an annualized payment of $3.52 and a yield of 0.4%, with an ex-dividend date set for November 20, 2023. The company’s current dividend payout ratio stands at 8.43%.

In related news, Christine A. Poon, a director at Regeneron, sold 6,500 shares of the company’s stock on October 29, realizing a total transaction value of $4.25 million at an average price of $654.27. This sale resulted in a significant reduction of her stake in the company. Additionally, Jason Pitofsky, Vice President, sold 431 shares on November 7, 2023, at an average price of $651.43, totaling approximately $280,766.

Institutional Investor Activity

Recent activity among institutional investors indicates continued interest in Regeneron Pharmaceuticals. Pointe Capital Management LLC increased its holdings by 37.0% in the third quarter, now owning 719 shares valued at approximately $404,000. Other firms, such as Greenfield Seitz Capital Management LLC and CIBC Private Wealth Group LLC, also expanded their positions during the same period.

As of now, institutional investors and hedge funds collectively hold 83.31% of Regeneron’s stock, underscoring significant confidence in the company’s future performance.

Regeneron Pharmaceuticals focuses on discovering, developing, and commercializing innovative medicines for various diseases globally. Among its notable products is EYLEA, an injection used to treat conditions such as wet age-related macular degeneration and diabetic macular edema. The company continues to be a key player in the biopharmaceutical sector, demonstrating strong financial performance and robust support from financial analysts.