Biogen (BIIB) Stock Up on CEO Transition, Fueling Sale Speculation
NEW YORK (TheStreet) -- Shares of Biogen (BIIB) - Get Report are gaining 2.49% to $289.49 in early-afternoon trade following the company's 2016 second quarter earnings report and an announcement that CEO George Scangos will step down after six years at the helm. Leerink, however, says the move might indicate an upcoming sale.
Scangos will be transitioning out within the next few months, the Boston Globe reports.
"This means that three out of four of the company's most senior executives, and a steady flow of second line management, have turned over in the last 12 months," Leerink said in an analyst note cited by Barron's.
The firm questioned whether or not the transition "is by accident or design," and whether or not it might spell an auction or merger of the company in the near future.
Also, Biogen reported 2016 second quarter earnings yesterday that blew past analysts' estimates. The company reported adjusted earnings per share of $5.21 vs. estimates of $4.67. Revenue for the quarter was $2.9 billion, beating estimates of $2.79 billion.
Biogen is a Cambridge, MA-based biopharmaceutical company.
Separately, TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author.
TheStreet Ratings rated this stock as a "buy" with a ratings score of B-.
The company's strengths can be seen in multiple areas, such as its impressive record of earnings per share growth, increase in net income, revenue growth, largely solid financial position with reasonable debt levels by most measures and reasonable valuation levels. TheStreet Ratings feels its strengths outweigh the fact that the company has had lackluster performance in the stock itself.
You can view the full analysis from the report here: BIIB