Sanofi (NASDAQ:SNY) Hits New 12-Month Low - Here's Why

Key Points

• Sanofi shares fell 2% to a new 52-week low of $39.52, well below their 50-day and 200-day moving averages of $43.47 and $44.18, respectively.
• Sanofi and Regeneron expanded their immunology alliance with four long-acting antibody candidates, including a $1 billion upfront payment and potential milestone payments of up to $7 billion. The deal could strengthen the companies’ Dupixent franchise but carries clinical, regulatory, execution and near-term spending risks.
• Analysts maintain a mixed but generally neutral outlook: Sanofi has an average “Hold” rating and a consensus price target of $49.50, compared with the stock’s recent trading level near $39.62.

Shares of Sanofi (NASDAQ:SNY - Get Free Report) hit a new 52-week low during mid-day trading on Friday. The stock traded as low as $39.52 and last traded at $39.6180, with a volume of 630110 shares. The stock had previously closed at $40.67.

Sanofi News Summary

Here are the key news stories impacting Sanofi this week:

• Positive Sentiment: Sanofi and Regeneron added four next-generation, long-acting antibodies to their global alliance, including clinical-stage IL-13 antibody REGN20423, a long-acting IL-4/IL-13 bispecific, and two preclinical candidates. The products could extend the companies’ leadership in type 2 inflammation and build on the success of Dupixent. Sanofi and Regeneron expand global Alliance with multiple next-generation, long-acting immunology antibodies
• Positive Sentiment: Regeneron will receive a $1 billion upfront payment, while Sanofi gains access to additional long-acting medicines that may offer more convenient dosing and improved commercial positioning. The companies will share development and commercialization costs and future profits equally. Sanofi, Regeneron Expand Immunology Partnership in $1 Billion Deal
• Neutral Sentiment: The agreement could be worth up to $8 billion, including as much as $7 billion in milestone payments. However, those payments depend on clinical, regulatory, and commercial success, so the pipeline’s eventual financial contribution remains uncertain. Sanofi, Regeneron Expand Immunology Alliance In Deal Worth Up To $8 Billion
• Negative Sentiment: The immediate $1 billion cash outlay and Sanofi’s commitment to fund half of development costs increase near-term spending before the new antibodies generate revenue. The assets are also at different development stages, leaving meaningful execution and regulatory risk. Sanofi, Regeneron to Expand Alliance in Deal Valued at Up to $8 Billion

Analysts Set New Price Targets

SNY has been the subject of a number of recent research reports. HSBC reiterated a "buy" rating on shares of Sanofi in a research note on Thursday, September 10th. Morgan Stanley set a $49.00 price target on Sanofi in a research report on Wednesday, July 8th. Weiss Ratings lowered Sanofi from a "hold (c-)" rating to a "sell (d)" rating in a research note on Monday, August 3rd. Royal Bank Of Canada started coverage on Sanofi in a report on Tuesday, September 8th. They set a "sector perform" rating on the stock. Finally, Wall Street Zen upgraded Sanofi from a "hold" rating to a "buy" rating in a research note on Saturday, August 29th. Two equities research analysts have rated the stock with a Strong Buy rating, three have assigned a Buy rating, ten have assigned a Hold rating and one has given a Sell rating to the stock. According to data from MarketBeat.com, the stock presently has an average rating of "Hold" and a consensus price target of $49.50.

Sanofi Trading Down 2.0%

The stock has a market cap of $96.60 billion, a PE ratio of 20.86, a PEG ratio of 1.24 and a beta of 0.33. The company has a current ratio of 0.99, a quick ratio of 0.64 and a debt-to-equity ratio of 0.21. The firm has a fifty day simple moving average of $43.47 and a two-hundred day simple moving average of $44.18.

Sanofi (NASDAQ:SNY - Get Free Report) last announced its earnings results on Thursday, July 30th. The company reported $2.41 earnings per share for the quarter. Sanofi had a net margin of 8.66% and a return on equity of 14.19%. The business had revenue of $13.36 billion for the quarter. During the same period in the prior year, the business earned $3.24 earnings per share. The company's revenue for the quarter was up 16.0% compared to the same quarter last year. As a group, equities analysts expect that Sanofi will post 5.07 earnings per share for the current fiscal year.

Institutional Inflows and Outflows

Several hedge funds and other institutional investors have recently added to or reduced their stakes in SNY. Tidal Investments LLC raised its holdings in Sanofi by 21.5% during the 2nd quarter. Tidal Investments LLC now owns 165,289 shares of the company's stock valued at $7,051,000 after buying an additional 29,283 shares during the last quarter. Assetmark Inc. increased its position in shares of Sanofi by 14.8% in the first quarter. Assetmark Inc. now owns 509,464 shares of the company's stock valued at $24,546,000 after acquiring an additional 65,796 shares during the period. AMG National Trust Bank purchased a new position in shares of Sanofi in the first quarter valued at about $2,719,000. Manning & Napier Advisors LLC raised its stake in shares of Sanofi by 728,134.8% during the first quarter. Manning & Napier Advisors LLC now owns 1,194,305 shares of the company's stock valued at $57,542,000 after acquiring an additional 1,194,141 shares during the last quarter. Finally, Archford Capital Strategies LLC bought a new position in shares of Sanofi during the second quarter valued at about $1,417,000. 14.03% of the stock is currently owned by hedge funds and other institutional investors.

About Sanofi

Sanofi is a France-based global healthcare company that develops, manufactures and markets prescription medicines, vaccines and consumer healthcare products. Its portfolio focuses on areas including immunology, rare diseases, vaccines, diabetes and other chronic conditions, as well as specialized treatments for selected neurological and inflammatory disorders.

The company is known for products such as Dupixent, a biologic used to treat several inflammatory conditions, and a broad range of vaccines marketed through its Sanofi Pasteur business.

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