Chugai Pharmaceutical (OTCMKTS:CHGCY) Shares Gap Down - Should You Sell?

Key Points

• Shares gapped down ~14.6%, opening at $24.5599 after a $27.22 close and last trading around $23.27 on light volume, signaling a sharp intraday decline.
• Despite the drop, analysts at UBS and SMBC Nikko recently upgraded Chugai to a "Strong Buy", and the stock's consensus rating on MarketBeat is currently Strong Buy.
• Fundamentals show a large $76.53 billion market cap with recent quarterly results of $0.22 EPS on $2.05 billion revenue, a 22.4% ROE and a 34.98% net margin, while the stock sits below its 50‑day and near its 200‑day moving averages.

Chugai Pharmaceutical Co., Ltd. Unsponsored ADR (OTCMKTS:CHGCY - Get Free Report) shares gapped down before the market opened on Monday . The stock had previously closed at $27.22, but opened at $24.5599. Chugai Pharmaceutical shares last traded at $23.2720, with a volume of 18,334 shares trading hands.

Wall Street Analyst Weigh In

Several brokerages have commented on CHGCY. UBS Group upgraded shares of Chugai Pharmaceutical to a "strong-buy" rating in a research report on Tuesday, January 27th. Smbc Nikko Sec. upgraded shares of Chugai Pharmaceutical to a "strong-buy" rating in a research report on Wednesday, February 25th. Two analysts have rated the stock with a Strong Buy rating, According to data from MarketBeat.com, the stock presently has an average rating of "Strong Buy".

Chugai Pharmaceutical Trading Down 14.6%

The company has a market cap of $76.53 billion, a price-to-earnings ratio of 25.83 and a beta of 0.69. The business has a fifty day moving average price of $28.92 and a two-hundred day moving average price of $27.07.

Chugai Pharmaceutical (OTCMKTS:CHGCY - Get Free Report) last issued its earnings results on Friday, April 24th. The company reported $0.22 earnings per share for the quarter. Chugai Pharmaceutical had a return on equity of 22.40% and a net margin of 34.98%.The company had revenue of $2.05 billion for the quarter.

Chugai Pharmaceutical Company Profile

Chugai Pharmaceutical Co, Ltd. is a Japan-based biopharmaceutical company headquartered in Tokyo that focuses on the discovery, development, manufacture and marketing of prescription medicines. The company develops both biologics and small-molecule therapies, with particular emphasis on oncology and immunology as well as treatments for bone and metabolic disorders. Chugai's activities span the full drug lifecycle from early research and clinical development through regulatory approval, manufacturing and post-marketing support.

Chugai is known for its research-driven approach and its work on monoclonal antibodies and other biologic therapeutics.

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