Teva Pharmaceutical Industries Limited (NYSE:TEVA): A Stock The Market Is Watching Closely Now

Stock analysts at JP Morgan upped their rating on shares of Teva Pharmaceutical Industries Limited (NYSE:TEVA) from Underweight to a new rating of Neutral in their opinion released on November 12. Gabelli & Co analysts bumped their recommendation on TEVA stock from prior rating of Hold to Buy in a separate flash note to investors on October 17. Analysts at Evercore ISI downgraded the company stock to a In-line call from its previous Outperform stance, in a flash note that dated back to August 07.

Let’s take a glimpse at some insider activity at Teva Pharmaceutical Industries Limited (NYSE:TEVA) and observe the pattern. The earliest insider trade happened on 12/31/2019. Fridriksdottir Hafrun parted with a total of 2.46 thousand shares of the firm at average share price of $9.92. The total amount for the sale was set at $24.39 thousand. On completing this exchange, the Executive VP, Global R&D account balance was 22.75 thousand shares. The stock grew 22.78 percent from that insider sale. On 12/02/2019, Fridriksdottir Hafrun, Executive VP, Global R&D, did a sale of 4.31 thousand shares at a price of $10.49 per share. This got rid of 45.21 thousand shares from the insider’s fortune and the stock experienced a 16.11 percent rally in price since the news became public. This exchange saw 20.57 thousand shares get out from the Executive VP, Global R&D account. On 11/05/2019, EVP, CFO McClellan Michael James recorded a sale transaction valued at $2.14 thousand. The sale at $8.83 a share has eliminated 0.24 thousand shares from the insider’s portfolio position. Meanwhile, shares price witnessed 37.94 percent increase since the transaction reporting date. The company insider is left with 15.9 thousand shares remaining in the account. O’Grady Brendan P., who works as EVP, North America Commercial at the company, performed a sale of 0.49 thousand shares in a transaction worth $3.87 thousand. The disposal recorded on 09/18/2019 was priced at $7.83 per share. The stock price soared 55.56 percent since the transaction. O’Grady Brendan P. currently holds a stake of 2.14 thousand in TEVA stock which is worth $26.01 thousand after the insider selling.

The stock is lingering around the initial support level of $11.42. After this, the following support is at the zone of $10.78. Up until the time the TEVA stock hit levels beyond the current one, bulls should have no alarm. In terms of its momentum, the stock’s RSI hit 76.08 on the daily chart, and this may be a cause for concern. In case the price goes below $10.78 level on closing basis, there may be more profit booking with the stock growing weaker. Still, getting to the $12.6 level may cause a pull-back move approaching $13.14 mark.

In the recent trading session, Teva Pharmaceutical Industries Limited (NYSE:TEVA) shares gained 0.95% or 0.12 points to reach at $12.18 with a thin trading volume of 14.52 million shares. It opened the trading session at $11.43, the shares rose to $12.5 and dropped to $11.32, the range by which the price of stock traded the whole session. The company now has a market cap of $13.2 billion and currently has 1.09 billion outstanding shares. Teva Pharmaceutical Industries Limited (TEVA) stock has accumulated 32.67 percent of market value in 21 trading days.

TEVA stock’s trailing 3-year beta is 1.87, meaning there will be a greater rate of return, although posing a higher risk. The part of a firm’s profit given to each outstanding share of regular stock was -$3.83 share in the trailing 52 weeks. The stock’s value surged 23.06 percent year to date (YTD) compared to a decline of -38.69 percent in 52 week’s period. The firm’s shares are still trading -39.76 percent below its 1-year high of $20.21 and 100.58 percent up from 52-week low of $6.07. The average consensus ranking on the company is 2.9, on a ranging where 5 is equal to a consensus sell rating. In other words, the mean analyst recommendations are ranking this stock as a sell.

Teva Pharmaceutical Industries Limited (TEVA) shares are trading at a P/E ratio of -2.61 times earnings posted in the trailing 12 months. The industry TEVA deals with has an average P/E of 29.7. Its P/B ratio is standing at 0.74X compared to the 7.23 industry average. It is additionally sporting a 0.43 on the Price-to-Sales ratio, compared to the industry’s P/S average of 0.73. Teva Pharmaceutical Industries Limited has a 42.6% gross profit margin, with its operating margin around -21.4%. Alongside this, the company’s net profit margin currently stands at -23.2%.

Past records have indicated that shares in Teva Pharmaceutical Industries Limited declined on 20 different earnings reaction days and we have yet to see whether this trend will play out and remain in place when the company reports upcoming earnings. Investors will get the next hint of TEVA’s Q4 earnings on February 12. Analysts are predicting revenue to suffer decline of -4.5 percent to $4.35B in the financial fourth quarter, while EPS will soar by about 15.09 percent to $0.61 per share. In the last quarter, it’s earnings of $0.6 per share came better than the $0.57508, adjusted, expected by Thomson Reuters consensus estimate. Revenue for the quarter was $4.56B, topping the $4.52B analysts had expected. Earnings are seen to rise by 87 percent this year, 2.88 percent in the coming year and the trend continues by -4.05 percent every year in the next 5 years.