Incyte rises 10.26%
By market cap size, Incyte (INCY) is among the top ten holdings of the SPDR S&P Biotech ETF (XBI). Since XBI is an equal-weighted ETF, Incyte has a weight of 1.22% of the fund’s portfolio. From August 10–17, 2015, it rose 10.26% and outperformed all of the large-cap stocks like Gilead Sciences (GILD), Amgen (AMGN), Regeneron Pharmaceuticals (REGN), and Biogen (BIIB). They have returned 0.14%, -0.47%, 0.38%, and 2.36%, respectively. It outperformed the benchmark index for the same period.
The above graph reflects Incyte’s performance compared to the benchmark index and other top stocks.
Incyte stock gained due to the high volume trading seen on August 17. The surge in the trading volumes could be because of the better-than-expected 2Q15 results that the company announced on August 4, 2015. According to the company’s press release, it announced its 2Q15 revenue at $163 million—compared to $100 million in 2Q14. It reported $142 million from the sale of Jakafi. It raised the 2015 revenue from Jakafi to $560–$575 million.
Moving averages and valuations
Incyte closed at $114.60 at the end of trade on August 17, 2015. The stock has been trading above the 20, 50, and 100-day moving averages. It’s trading closer to the upper Bollinger Band. This indicates that the stock might be moving to an overbought position. Incyte’s PBV (price-to-book value) ratio is at 374.27x—compared to the XBI’s average PBV ratio of 14.73x. The stock is trading at a very high PBV ratio compared to other stocks in XBI.