Alexion Pharmaceuticals Inc. (NASDAQ: ALXN): Hunting Genuine Value In Market Debris

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SSgA Funds Management, Inc. recently announced the acquisition of new stake in Alexion Pharmaceuticals Inc. (NASDAQ:ALXN). The institutional investor has increased its shareholding in the Healthcare company by 1.11% to 11.08 million shares with purchase of 0.12 million shares. This fresh investment now brings its stake to 5.02% valued currently at $1.24 billion. In addition, Baker Bros. Advisors LP raised its holdings by 0.18 million to 8.94 million shares. And ClearBridge Investments LLC has lifted its position by 2.91% or 0.19 million shares – to 6.55 million shares.

With over 2.52 million Alexion Pharmaceuticals Inc. (ALXN) shares trading Friday and a closing price of $106.85 on the day, the dollar volume was approximately $269.08 million. The shares have shown a negative weekly performance of -2.46% and its price on 07/24/20 gained nearly 5.28%. Currently, there are 221.60M common shares owned by the public and among those 218.85M shares have been available to trade.

An analysis of what Wall Street brokers have to say about the expected price targets for this stock gives us this picture: 21 analysts who have offered their price forecasts for ALXN have a consensus price objective of $139.56. The analysts have set the share’s price value over the next 12 months at a high of $170.00 and a low of $111.00 should the stock experience a downside. Incidentally, analysts’ outlook for the Alexion Pharmaceuticals Inc. stock is 2.10 for the next 12 months. The average price target is 22.81% above its last price level and an upside to the estimated low will see the stock gain 3.74% over that period. But an upside of 37.15% will see the stock hit the forecast high price target while mean target price for the stock is $142.00.

Insiders at the company have transacted a total of 86 times over the past 12 months, according to data filed with the U.S. Securities and Exchange Commission (SEC). 67 of these insider trades were purchases, accounting for 673,814 shares. Insider sales of the common stock occurred on 19 occasions, with total insider shares sold totaling 50,463 shares.

The top 3 mutual fund holders in Alexion Pharmaceuticals Inc. are Vanguard Total Stock Market Index, Vanguard 500 Index Fund, and Government Pension Fund – Global. Vanguard Total Stock Market Index owns 5.98 million shares of the company’s stock, all valued at over $671.08 million. The company sold 92157.0 shares recently to bring their total holdings to about 2.71% of the shares outstanding. Vanguard 500 Index Fund bought 60953.0 shares to see its total holdings expand to 4.58 million shares valued at over $514.1 million and representing 2.07% of the shares outstanding. Government Pension Fund – Global sold -0.86 million shares to bring its total holdings to over 3.07 million shares at a value of $344.3 million. Government Pension Fund – Global now owns shares totaling to 1.39% of the shares outstanding.

Shares of Alexion Pharmaceuticals Inc. (NASDAQ: ALXN) opened at $104.40, up $2.91 from a prior closing price of $101.49. However, the script later closed the day at $106.85, up 5.28%. The company’s stock has a 5-day price change of -2.46% and -3.62% over the past three months. ALXN shares are trading -1.20% year to date (YTD), with the 12-month market performance down to -6.79% lower. It has a 12-month low price of $72.67 and touched a high of $125.52 over the same period. Currently, 2.52 million shares have been traded, compared to an average intraday trading volume of 2.08 million shares. The stock is trading above its simple moving averages at the SMA20, SMA50, and SMA200, as the current price level is off by -2.30%, -3.32%, and 2.33% respectively.

Institutional ownership of Alexion Pharmaceuticals Inc. (NASDAQ: ALXN) shares accounts for 93.70% of the company’s 221.60M shares outstanding. Mutual fund holders own 5.48%, while other institutional holders and individual stakeholders account for 50.22% and 43.41% respectively.

It has a market capitalization of $24.36B and a beta (3y monthly) value of 1.42. The stock’s trailing 12-month PE ratio is 10.07, while the earnings-per-share (ttm) stands at $10.61. The company has a PEG of 0.80 and a Quick Ratio of 3.80 with the debt-to-equity ratio at 0.21. Price movements for the stock have been influenced by the stock’s volatility, which stands at 3.46% over the week and 2.79% over the month.

Analysts forecast that Alexion Pharmaceuticals Inc. (ALXN) will achieve an EPS of $2.59 for the current quarter, $2.55 for the next quarter and $11.71 for 2021. The lowest estimate earnings-per-share for the quarter is $2.35 while analysts give the company a high EPS estimate of $3.02. Comparatively, EPS for the current quarter was $2.64 a year ago. Earnings per share for the fiscal year are expected to increase by 3.20%, and 7.59% over the next financial year. EPS should shrink at an annualized rate of 12.60% over the next five years, compared to 26.80% over the past 5-year period.

If you are looking to buy this stock, then you may note that the average analyst recommendation by 21 brokerage firm advisors rate Alexion Pharmaceuticals Inc. (ALXN) as a “Moderate Buy” at a consensus score of 2.10. Specifically, 11 Wall Street analysts polled rate the stock as a buy, while 8 of the 21 advise that investors “hold,” and 0 rated it as a “Sell.”

Looking at the support for the ALXN, a number of firms have released research notes about the stock. Cantor Fitzgerald stated their Neutral rating for the stock in a research note on April 28, 2020, with the firm’s price target at $121. Oppenheimer coverage for the Alexion Pharmaceuticals Inc. (ALXN) stock in a research note released on March 17, 2020 offered a Perform rating with a price target of. BofA/Merrill was of a view on March 05, 2020 that the stock is Neutral, while RBC Capital Mkts gave the stock Outperform rating on January 31, 2020, issuing a price target of $135. Morgan Stanley on their part issued Equal-Weight rating on December 17, 2019.

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