Takeda Pharmaceutical (NYSE:TAK) Reaches New 12-Month High on Earnings Beat

Key Points

• Takeda Pharmaceutical shares hit a new 52-week high after the company reported quarterly EPS of $0.51, exceeding the $0.14 consensus estimate, while revenue of $7.53 billion also topped expectations.
• Analyst sentiment remains moderately positive, with two Buy ratings and two Hold ratings; the stock’s consensus rating is “Moderate Buy.”
• Insiders sold 627,457 shares worth approximately $11.0 million over the past 90 days, primarily to cover tax withholding obligations tied to vested equity awards, while institutional investors own 9.17% of the company.

Takeda Pharmaceutical Co. (NYSE:TAK - Get Free Report) shares reached a new 52-week high on Friday following a better than expected earnings announcement. The company traded as high as $21.22 and last traded at $20.8980, with a volume of 390,933 shares changing hands. The stock had previously closed at $20.01.

The company reported $0.51 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.14 by $0.37. Takeda Pharmaceutical had a net margin of 3.80% and a return on equity of 10.95%. The company had revenue of $7.53 billion for the quarter, compared to analysts' expectations of $7.34 billion.

Analyst Upgrades and Downgrades

A number of research analysts recently weighed in on the stock. Zacks Research cut shares of Takeda Pharmaceutical from a "strong-buy" rating to a "hold" rating in a report on Thursday, October 1st. Weiss Ratings raised Takeda Pharmaceutical from a "hold (c-)" rating to a "hold (c)" rating in a report on Thursday, October 8th. Finally, Wall Street Zen upgraded Takeda Pharmaceutical from a "hold" rating to a "buy" rating in a research note on Saturday, July 18th. Two analysts have rated the stock with a Buy rating and two have given a Hold rating to the stock. According to MarketBeat, the stock currently has a consensus rating of "Moderate Buy".

Insider Buying and Selling

In other news, insider Giles Platford sold 31,083 shares of the business's stock in a transaction on Monday, August 10th. The stock was sold at an average price of $17.10, for a total value of $531,519.30. Following the completion of the transaction, the insider directly owned 315,838 shares of the company's stock, valued at $5,400,829.80. The trade was a 8.96% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available through the SEC website. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, insider Andrew Plump sold 165,393 shares of the stock in a transaction on Monday, August 10th. The shares were sold at an average price of $17.10, for a total value of $2,828,220.30. Following the sale, the insider directly owned 766,569 shares in the company, valued at approximately $13,108,329.90. The trade was a 17.75% decrease in their position. The disclosure for this sale is available in the SEC filing. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Over the last 90 days, insiders sold 627,457 shares of company stock valued at $10,981,175. Company insiders own 0.04% of the company's stock.

Institutional Trading of Takeda Pharmaceutical

Several hedge funds and other institutional investors have recently bought and sold shares of the company. Renaissance Technologies LLC raised its position in shares of Takeda Pharmaceutical by 14.2% during the 1st quarter. Renaissance Technologies LLC now owns 2,989,100 shares of the company's stock worth $55,358,000 after purchasing an additional 370,800 shares during the period. Quantinno Capital Management LP increased its stake in shares of Takeda Pharmaceutical by 20.6% in the first quarter. Quantinno Capital Management LP now owns 1,289,326 shares of the company's stock valued at $23,878,000 after purchasing an additional 219,999 shares during the period. Elevation Point Wealth Partners LLC raised its stake in Takeda Pharmaceutical by 376.3% during the 1st quarter. Elevation Point Wealth Partners LLC now owns 141,882 shares of the company's stock valued at $2,628,000 after acquiring an additional 112,092 shares in the last quarter. QRG Capital Management Inc. boosted its position in Takeda Pharmaceutical by 27.3% during the 1st quarter. QRG Capital Management Inc. now owns 367,688 shares of the company's stock worth $6,810,000 after acquiring an additional 78,958 shares during the period. Finally, Assetmark Inc. grew its stake in shares of Takeda Pharmaceutical by 45.8% in the first quarter. Assetmark Inc. now owns 227,616 shares of the company's stock worth $4,215,000 after purchasing an additional 71,496 shares in the last quarter. 9.17% of the stock is owned by hedge funds and other institutional investors.

Takeda Pharmaceutical Stock Performance

The company has a market cap of $66.95 billion, a P/E ratio of 61.43 and a beta of -0.07. The company has a quick ratio of 0.62, a current ratio of 1.14 and a debt-to-equity ratio of 0.58. The company has a 50 day moving average price of $18.79 and a 200-day moving average price of $17.52.

About Takeda Pharmaceutical

Takeda Pharmaceutical Company Limited is a global biopharmaceutical company headquartered in Tokyo, Japan. The company researches, develops, manufactures and commercializes medicines for patients worldwide, with a focus on areas of significant unmet medical need. Its principal therapeutic areas include gastroenterology, rare diseases, plasma-derived therapies, oncology, neuroscience and vaccines.

Takeda's portfolio includes treatments such as Entyvio for inflammatory bowel disease, Takhzyro for hereditary angioedema, and medicines for certain blood cancers and rare conditions.

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