Biogen Inc Intrinsic Stock Value – Renaissance Technologies LLC Decreases Stake in Biogen Inc Despite Positive Earnings Report – What Does This Mean?
June 20, 2023
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Biogen Inc ($NASDAQ:BIIB). is a biopharmaceutical company based in Cambridge, Massachusetts that is engaged in the development, manufacturing, and marketing of therapies and treatments for a variety of diseases including multiple sclerosis, neurodegenerative diseases, and hemophilia. Biogen Inc. reported a very positive earnings report earlier this year, however, this has not stopped Renaissance Technologies LLC from decreasing their stake in the company. Renaissance Technologies LLC is a New York-based hedge fund that specializes in quantitative and algorithmic trading strategies. The decrease of shares held by the hedge fund suggests that they are less confident in Biogen’s future prospects. This could be seen as a sign that shareholders may be losing faith in the company’s performance and prospects. Despite the negative outlook from some investors, Biogen Inc. still appears to be doing well financially. The company has reported strong revenue growth and an increase in net income from the previous year.
Additionally, their stock price has also seen an increase, suggesting that they are still performing well in the market. Ultimately, the decision by Renaissance Technologies LLC to decrease its stake in Biogen Inc. is concerning, but it is still too soon to tell what this could mean for Biogen’s future prospects. It is important to keep an eye on how the company performs over the next few months and to watch for any further changes in investor sentiment towards the company.
Earnings
In the first quarter of fiscal year 2023 ending on March 31 2021, Biogen Inc. reported a positive earning report. The report showed that the company earned a total revenue of 2694.0M USD and a net income of 410.2M USD; this was a 6.4% increase in total revenue and a 35.0% increase in net income compared to the previous year. It is unclear why Renaissance Technologies LLC chose to reduce its stake in the company despite the positive earnings report, as total revenue for Biogen Inc. had increased from 2463.0M USD to 2694.0M USD in the last three years. It is possible that Renaissance Technologies LLC believes there is more room for growth in other investments, or that the company is not confident in Biogen’s ability to sustain its growth in the long run.
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Biogen Inc. More…
| Total Revenues | Net Income | Net Margin |
| 10.1k | 3.13k | 21.9% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Biogen Inc. More…
| Operations | Investing | Financing |
| 1.38k | 1.58k | -1.75k |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Biogen Inc. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 24.6k | 10.81k | 93.04 |
Key Ratios Snapshot
Some of the financial key ratios for Biogen Inc are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| -11.2% | -27.5% | 39.0% |
| FCF Margin | ROE | ROA |
| 11.3% | 18.4% | 10.0% |
Share Price
On Monday, Biogen Inc (BIIB) released its quarterly earnings report and the stock opened at $299.7 and closed at $302.1, up by 0.6% from the previous closing price of 300.2. This could be due to Renaissance Technologies LLC possibly deciding to take profits from its position in Biogen, as the stock has had a positive trend in recent months. It could also be that they are taking a measured approach and moving away from the stock in order to reduce any potential risks associated with a volatile market. Regardless of the reasons behind the decreased holding in Biogen Inc, investors should remain aware of their own risk tolerance, and diversify their holdings to mitigate any possible losses.
It is important to understand that even if a stock or sector performs well, there may still be potential risks associated with it. Therefore, investors should be prepared to make decisions regarding their investments based on their own individual needs. Live Quote…
Analysis – Biogen Inc Intrinsic Stock Value
At GoodWhale, we have carried out an analysis of BIOGEN INC‘s financials. Utilizing our proprietary Valuation Line, we have calculated the intrinsic value of BIOGEN INC share at around $326.2. At the moment, BIOGEN INC stock is traded at $302.1, which is a fair price – however it is undervalued by 7.4%. This presents an opportune moment for investors to purchase the stock, as it offers a potential upside. More…
Peers
In the biotechnology industry, Biogen Inc is up against some stiff competition from the likes of Eli Lilly and Co, Gilead Sciences Inc, and Intra-Cellular Therapies Inc. All three companies are leaders in the development of innovative treatments and therapies for a variety of diseases and disorders. Biogen Inc has developed a reputation for being a cutting-edge company that is constantly striving to bring new and improved treatments to market. This commitment to innovation has allowed Biogen Inc to maintain a strong position in the industry, despite the challenges posed by its competitors.
– Eli Lilly and Co ($NYSE:LLY)
Eli Lilly and Co is a global pharmaceutical company that develops and markets prescription medicines and vaccines for various medical conditions. The company’s market cap as of 2022 is 316.18B. Its return on equity (ROE) is 45.88%.
Eli Lilly and Co was founded in 1876 and is headquartered in Indianapolis, Indiana, United States. The company operates in more than 140 countries worldwide. Some of its products include treatments for diabetes, cancer, Alzheimer’s disease, and psychiatric disorders.
– Gilead Sciences Inc ($NASDAQ:GILD)
Gilead Sciences Inc is a research-based biopharmaceutical company that discovers, develops and commercialises innovative therapeutics. The company’s mission is to advance the care of patients suffering from life-threatening diseases. Gilead Sciences Inc has a market cap of 83.2B as of 2022 and a Return on Equity of 24.03%. The company’s products include antiviral therapies, treatments for cancer and inflammatory diseases.
– Intra-Cellular Therapies Inc ($NASDAQ:ITCI)
Intra-Cellular Therapies Inc is a clinical stage biopharmaceutical company that focuses on the development of drugs for the treatment of neuropsychiatric disorders. The company’s market cap as of 2022 was 4.47B, and its ROE was -42.76%. The company’s products are in various stages of development, and include candidates for the treatment of schizophrenia, bipolar disorder, and major depressive disorder.
Summary
Biogen Inc. is currently an attractive investment for investors due to positive earnings reported in its latest financial report. Renaissance Technologies LLC has reduced its stake in the company despite this, indicating that the company may be uncertain of Biogen’s potential in the long run. Nevertheless, investors should consider analyzing the current market conditions and financials of Biogen Inc. before investing. This includes examining the company’s debt-to-equity ratio, return on assets, and market share of its core products or services.
Additionally, investors should consider studying the competitive landscape of the industry to gain a better understanding of the company’s potential.
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