Biogen (NASDAQ:BIIB) Downgraded to "Hold" Rating by Wall Street Zen

Key Points

• Wall Street Zen downgraded Biogen from “Buy” to “Hold,” although broader analyst sentiment remains positive, with a consensus “Moderate Buy” rating and an average price target of $223.36.
• Biogen reported quarterly EPS of $3.60 and revenue of $2.74 billion, exceeding analyst expectations; revenue increased 3.4% year over year, supported by newer medicines.
• Despite the revenue and earnings beat, reported profitability weakened sharply, with net income falling to $97.5 million and diluted EPS declining to $0.66 from $4.33 a year earlier. Institutional investors own approximately 87.93% of the company’s shares.

Biogen (NASDAQ:BIIB - Get Free Report) was downgraded by analysts at Wall Street Zen from a "buy" rating to a "hold" rating in a research note issued on Saturday.

Several other equities research analysts have also commented on the company. Guggenheim upped their price objective on Biogen from $260.00 to $280.00 and gave the stock a "buy" rating in a research report on Tuesday, July 21st. Royal Bank Of Canada cut their target price on shares of Biogen from $242.00 to $240.00 and set an "outperform" rating for the company in a report on Thursday. Argus upgraded shares of Biogen to a "hold" rating in a research note on Thursday, April 9th. Weiss Ratings reissued a "hold (c)" rating on shares of Biogen in a report on Wednesday. Finally, Citigroup raised their price objective on Biogen from $190.00 to $200.00 and gave the company a "neutral" rating in a report on Friday, May 1st. One equities research analyst has rated the stock with a Strong Buy rating, seventeen have given a Buy rating, thirteen have issued a Hold rating and one has issued a Sell rating to the stock. Based on data from MarketBeat, the company presently has a consensus rating of "Moderate Buy" and a consensus target price of $223.36.

Biogen Stock Performance

Shares of BIIB stock opened at $202.95 on Friday. Biogen has a 52-week low of $124.56 and a 52-week high of $219.72. The company has a quick ratio of 2.41, a current ratio of 1.87 and a debt-to-equity ratio of 0.39. The stock has a market cap of $29.99 billion, a PE ratio of 35.92, a price-to-earnings-growth ratio of 6.43 and a beta of 0.16. The business has a 50-day simple moving average of $201.23 and a 200-day simple moving average of $190.60.

Biogen (NASDAQ:BIIB - Get Free Report) last posted its earnings results on Wednesday, July 29th. The biotechnology company reported $3.60 EPS for the quarter, topping the consensus estimate of $2.94 by $0.66. The firm had revenue of $2.74 billion for the quarter, compared to analyst estimates of $2.46 billion. Biogen had a return on equity of 11.18% and a net margin of 8.32%.Biogen's revenue for the quarter was up 3.4% compared to the same quarter last year. During the same period last year, the company earned $5.47 earnings per share. Biogen has set its FY 2026 guidance at 12.000-13.000 EPS. On average, equities analysts expect that Biogen will post 12.49 EPS for the current year.

Institutional Trading of Biogen

A number of hedge funds have recently bought and sold shares of BIIB. LSV Asset Management grew its holdings in Biogen by 3.3% in the 4th quarter. LSV Asset Management now owns 316,815 shares of the biotechnology company's stock valued at $55,756,000 after buying an additional 9,976 shares in the last quarter. Catalyst Funds Management Pty Ltd purchased a new position in shares of Biogen during the 4th quarter worth $2,006,000. Orbimed Advisors LLC purchased a new position in shares of Biogen during the 1st quarter worth $11,293,000. Systematic Financial Management LP boosted its position in shares of Biogen by 256.3% during the 4th quarter. Systematic Financial Management LP now owns 16,640 shares of the biotechnology company's stock valued at $2,928,000 after acquiring an additional 11,970 shares during the last quarter. Finally, Contrarius Group Holdings Ltd acquired a new position in shares of Biogen during the 4th quarter valued at about $11,431,000. Institutional investors and hedge funds own 87.93% of the company's stock.

Key Biogen News

Here are the key news stories impacting Biogen this week:

• Positive Sentiment: Biogen reported second-quarter revenue of $2.74 billion, up 3.4% year over year and ahead of consensus estimates of approximately $2.46 billion. Growth was led by newer products and the company’s growth portfolio, helping adjusted EPS reach $3.60 versus the $2.94 analyst estimate. Biogen beats quarterly estimates as newer drugs drive growth
• Positive Sentiment: Management raised its revenue outlook and highlighted continued momentum in newer medicines and strategic acquisitions, supporting the view that Biogen is gradually reducing its reliance on older products. Biogen raises revenue outlook as growth portfolio drives Q2 beat
• Positive Sentiment: Several analysts became more constructive after the results. TD Cowen raised its price target to $225 and upgraded the stock to Buy, while Morgan Stanley increased its target to $231, although it retained an Equal Weight rating. Barclays also expects the shares to rise.
• Neutral Sentiment: Wedbush raised its price target from $201 to $215 but maintained a Neutral rating, and Piper Sandler reaffirmed its Buy rating. Zacks upgraded Biogen from Strong Sell to Hold, indicating improving sentiment but not broad analyst conviction.
• Negative Sentiment: Reported profitability deteriorated substantially. Second-quarter net income fell to $97.5 million, while diluted EPS from continuing operations declined to $0.66 from $4.33 a year earlier; first-half net income also dropped to $417 million from $875.3 million. The sharp gap between revenue growth and reported earnings is raising concerns that profitability may be peaking. Biogen earnings and profitability analysis

About Biogen

Biogen Inc is a multinational biotechnology company focused on discovering, developing and delivering therapies for neurological and neurodegenerative diseases. Headquartered in Cambridge, Massachusetts, the company has a longstanding emphasis on neuroscience, with research and commercial activities spanning multiple therapeutic areas including multiple sclerosis, spinal muscular atrophy and Alzheimer's disease. Biogen was founded in 1978 and has grown into a global biopharmaceutical firm with operations and commercial presence across North America, Europe, Japan and other international markets.

The company's marketed portfolio has historically included several well-known therapies for multiple sclerosis such as Avonex, Tysabri and Tecfidera, and it has pursued treatments for rare neurological conditions and genetic neuromuscular disorders.

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