Royal Bank of Canada Sells 10,448 Shares of Biogen Inc. $BIIB

Key Points

• Royal Bank of Canada reduced its Biogen stake by 1.9%, selling 10,448 shares and retaining 531,377 shares valued at approximately $97.4 million. Institutional investors collectively own 87.93% of BIIB.
• Biogen reported a quarterly revenue and adjusted EPS beat, with revenue up 3.4% year over year to $2.74 billion and EPS of $3.60 versus the $2.94 consensus estimate. However, net income and reported EPS declined sharply from the prior year, raising concerns about profitability.
• Analyst sentiment remains generally positive, with several firms raising price targets or upgrading the stock; Biogen carries a “Moderate Buy” consensus rating and an average target price of $223.36.

Royal Bank of Canada cut its stake in Biogen Inc. (NASDAQ:BIIB - Free Report) by 1.9% in the 1st quarter, according to the company in its most recent disclosure with the SEC. The institutional investor owned 531,377 shares of the biotechnology company's stock after selling 10,448 shares during the quarter. Royal Bank of Canada owned about 0.36% of Biogen worth $97,418,000 at the end of the most recent quarter.

A number of other hedge funds and other institutional investors also recently made changes to their positions in BIIB. Vanguard Group Inc. increased its position in shares of Biogen by 0.9% during the fourth quarter. Vanguard Group Inc. now owns 17,447,092 shares of the biotechnology company's stock valued at $3,070,514,000 after buying an additional 157,857 shares during the period. Geode Capital Management LLC boosted its position in shares of Biogen by 3.2% in the fourth quarter. Geode Capital Management LLC now owns 4,199,399 shares of the biotechnology company's stock valued at $736,435,000 after acquiring an additional 130,618 shares during the period. Norges Bank bought a new position in shares of Biogen in the fourth quarter valued at approximately $464,408,000. Invesco Ltd. grew its stake in Biogen by 4.2% during the third quarter. Invesco Ltd. now owns 2,418,127 shares of the biotechnology company's stock valued at $338,731,000 after acquiring an additional 98,001 shares in the last quarter. Finally, Morgan Stanley grew its stake in Biogen by 3.3% during the fourth quarter. Morgan Stanley now owns 2,325,013 shares of the biotechnology company's stock valued at $409,180,000 after acquiring an additional 73,478 shares in the last quarter. 87.93% of the stock is currently owned by institutional investors.

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

Biogen Trading Down 2.4%

Shares of Biogen stock opened at $202.95 on Friday. Biogen Inc. has a 1 year low of $124.56 and a 1 year high of $219.72. The firm has a market cap of $29.99 billion, a PE ratio of 35.92, a PEG ratio of 6.43 and a beta of 0.16. The company has a debt-to-equity ratio of 0.39, a current ratio of 1.87 and a quick ratio of 2.41. The company has a 50 day simple moving average of $201.23 and a two-hundred day simple moving average of $190.60.

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

Analyst Upgrades and Downgrades

Several research firms have issued reports on BIIB. Canaccord Genuity Group increased their target price on shares of Biogen from $245.00 to $248.00 and gave the stock a "buy" rating in a research note on Thursday. Wall Street Zen lowered shares of Biogen from a "buy" rating to a "hold" rating in a research report on Saturday. Wedbush upped their price target on shares of Biogen from $201.00 to $215.00 and gave the stock a "neutral" rating in a report on Thursday. Guggenheim increased 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. Finally, Truist Financial raised Biogen from a "hold" rating to a "buy" rating and lifted their price objective for the company from $190.00 to $235.00 in a research note on Monday, July 13th. One equities research analyst has rated the stock with a Strong Buy rating, seventeen have assigned a Buy rating, thirteen have assigned a Hold rating and one has assigned a Sell rating to the company. According to MarketBeat.com, the company presently has a consensus rating of "Moderate Buy" and an average target price of $223.36.

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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