Leerink Partners Increases Earnings Estimates for BeiGene

On October 28, 2024, analysts from Leerink Partners announced revisions to their earnings estimates for BeiGene, Ltd. (NASDAQ:BGNE). The updated estimates reflect a more favorable outlook for the company’s financial performance in the upcoming quarter. Analyst A. Berens now predicts that BeiGene will report earnings of ($1.12) per share for the third quarter of 2024, a significant improvement from the previous estimate of ($1.23) per share. The consensus expectation for BeiGene’s overall earnings for the current fiscal year remains at ($5.07) per share.

Furthermore, Leerink Partners has projected the company’s earnings for the fourth quarter of 2024 to be ($1.02) per share. Looking ahead, the firm estimates a recovery in earnings with expected figures of ($5.69) per share for FY2024, $0.79 per share for FY2025, $8.34 per share for FY2026, and $13.86 per share for FY2027.

Recent Analyst Activity

In addition to Leerink's revisions, other analysts have recently updated their assessments of BeiGene. Citigroup raised its price target for the company from $269.00 to $288.00 and assigned a "buy" rating in a report dated August 8. On October 22, JPMorgan Chase & Co. also increased its target price from $200.00 to $235.00 while maintaining an "overweight" rating. JMP Securities initiated coverage on BeiGene on September 18, setting a "market outperform" rating and targeting a price of $288.00. However, not all analysts share this bullish outlook; Bank of America reduced its price target from $180.00 to $152.50, reflecting a "neutral" stance. Overall, BeiGene has garnered three hold ratings and five buy ratings, with an average rating of "Moderate Buy" according to MarketBeat.

Stock Performance

As of November 1, 2024, shares of BeiGene (BGNE) opened at $202.64, a dip of 1.6%. The stock has experienced a 50-day simple moving average of $211.25 and a 200-day moving average of $177.18. Over the past year, BeiGene's stock has fluctuated, reaching a twelve-month low of $126.97 and a high of $248.16. The company maintains a market capitalization of approximately $19.64 billion, a price-to-earnings ratio of -26.77, and a beta of 0.62.

Recent Earnings Report

In its last earnings report on August 7, BeiGene posted a quarterly loss of ($1.15) per share, which was better than analysts' consensus estimate of ($2.27). The company reported revenue of $929.20 million for the quarter, surpassing expectations of $810.34 million. However, the firm reported a negative return on equity of 14.93% and a net margin of -16.91%. Comparatively, revenue surged by 56.1% year-over-year, indicating robust growth.

Institutional Investor Activity

Recent changes in institutional ownership reflect increased interest in BeiGene. Driehaus Capital Management acquired a new position valued at around $1.17 million in the second quarter, while AIA Group Ltd increased its holdings by 38.9% during the same timeframe. Other notable investors include Swedbank AB and M&G Plc, both of which have recently acquired positions in the company. Currently, about 48.55% of BeiGene's stock is held by institutional investors.

Insider Trading

In terms of insider trading activities, COO Xiaobin Wu sold 5,556 shares of BeiGene on September 3 at an average price of $189.65, resulting in a total transaction of approximately $1.05 million. Furthermore, insider Titus B. Ball sold 137 shares at an average price of $189.94 for a total of $26,021.78. Over the last three months, insiders have sold 23,070 shares valued at around $4.9 million, holding 7.43% of the company’s shares.

About BeiGene

BeiGene, Ltd. focuses on the development and commercialization of cancer therapies globally. The company offers a range of products aimed at treating various forms of cancer, including BRUKINSA for blood cancers, TEVIMBRA for solid tumors and blood cancers, and several other oncology medicines addressing diverse conditions such as multiple myeloma, leukemia, and solid tumors.

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