Celgene (CELG) Lowered to “Hold” at Zacks Investment Research

Celgene (NASDAQ:CELG) was downgraded by Zacks Investment Research from a “buy” rating to a “hold” rating in a note issued to investors on Wednesday.

According to Zacks, “Celgene’s lead drug Revlimid continue to boost performance. Other drugs like Pomalyst and Otezla are also performing well. The increase in annual guidance concurrent with the second-quarter earnings on the back of strong Revlimid sales should boost investors’ sentiment, given the recent spate of pipeline setbacks. The company is focussed on the next cycle of innovation with five late stage candidates. In a bid to revive its pipeline, Celgene acquired Juno Therapeutics and added JCAR017 to its lymphoma pipeline. Luspatercept looks promising as well with positive data from two late-stage trials. However, shares have underperformed the industry in the year so far.  While Revlimid sales continue to be impressive, the company’s dependence on the same is a concern. Celgene suffered a setback when it received a Refusal To File letter from the FDA, regarding the NDA for ozanimod in relapsing multiple sclerosis (RMS).”

A number of other brokerages have also recently weighed in on CELG. Canaccord Genuity restated a “buy” rating on shares of Celgene in a report on Wednesday, May 30th. Cantor Fitzgerald set a $112.00 price target on shares of Celgene and gave the company a “hold” rating in a research report on Friday, June 1st. Mizuho restated a “buy” rating and issued a $118.00 price target on shares of Celgene in a research report on Tuesday, July 10th. SunTrust Banks reduced their price target on shares of Celgene from $106.00 to $96.00 and set a “hold” rating for the company in a research report on Tuesday, May 29th. Finally, BidaskClub upgraded shares of Celgene from a “sell” rating to a “hold” rating in a research report on Tuesday, July 10th. Two equities research analysts have rated the stock with a sell rating, fourteen have assigned a hold rating, twenty have issued a buy rating and one has issued a strong buy rating to the company. The company presently has a consensus rating of “Buy” and an average price target of $121.85.

NASDAQ:CELG traded up $1.27 during trading hours on Wednesday, reaching $88.84. 22,997 shares of the company’s stock were exchanged, compared to its average volume of 3,895,640. The stock has a market capitalization of $61.59 billion, a price-to-earnings ratio of 12.94, a PEG ratio of 0.53 and a beta of 1.32. Celgene has a 12 month low of $74.13 and a 12 month high of $147.17. The company has a debt-to-equity ratio of 5.76, a quick ratio of 1.40 and a current ratio of 1.52.

Celgene (NASDAQ:CELG) last issued its earnings results on Thursday, July 26th. The biopharmaceutical company reported $2.16 earnings per share for the quarter, topping the Zacks’ consensus estimate of $2.11 by $0.05. The firm had revenue of $3.81 billion during the quarter, compared to analysts’ expectations of $3.70 billion. Celgene had a net margin of 19.81% and a return on equity of 87.28%. The firm’s revenue for the quarter was up 16.6% compared to the same quarter last year. During the same period last year, the firm posted $1.82 earnings per share. sell-side analysts expect that Celgene will post 7.64 EPS for the current fiscal year.

In other Celgene news, Director John H. Weiland bought 5,575 shares of the firm’s stock in a transaction dated Tuesday, August 7th. The shares were acquired at an average cost of $89.73 per share, for a total transaction of $500,244.75. The acquisition was disclosed in a legal filing with the SEC, which is accessible through this link. Also, Director Ernest Mario sold 12,000 shares of Celgene stock in a transaction dated Thursday, August 9th. The shares were sold at an average price of $92.32, for a total transaction of $1,107,840.00. Following the sale, the director now owns 44,413 shares in the company, valued at $4,100,208.16. The disclosure for this sale can be found here. 0.39% of the stock is owned by corporate insiders.

Several institutional investors and hedge funds have recently bought and sold shares of CELG. Archford Capital Strategies LLC bought a new stake in shares of Celgene in the first quarter worth $124,000. Ayalon Holdings Ltd. bought a new stake in shares of Celgene in the second quarter worth $100,000. Atlantic Trust LLC bought a new stake in shares of Celgene in the second quarter worth $101,000. Acropolis Investment Management LLC bought a new stake in shares of Celgene in the second quarter worth $112,000. Finally, City Holding Co. bought a new stake in shares of Celgene in the second quarter worth $143,000. 73.07% of the stock is owned by institutional investors and hedge funds.

About Celgene

Celgene Corporation, a biopharmaceutical company, engages in the discovery, development, and commercialization of therapies for the treatment of cancer and inflammatory diseases worldwide. It offers REVLIMID, an oral immunomodulatory drug for multiple myeloma (MM), myelodysplastic syndromes (MDS), and mantle cell lymphoma; POMALYST/IMNOVID to treat multiple myeloma; OTEZLA, a small-molecule inhibitor of phosphodiesterase 4 for psoriatic arthritis and psoriasis; and ABRAXANE, a solvent-free chemotherapy product to treat breast, non-small cell lung, pancreatic, and gastric cancers.

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