IBB’s international exposure
The iShares NASDAQ Biotechnology ETF (IBB) provides investors with exposure to international companies, with around 15 such companies in its portfolio. The combined weight of these securities stood at ~8.1% on May 27, 2016. These include stocks like Shire (SHPG), Jazz Pharmaceuticals (JAZZ), and Qiagen (QGEN), which gained 0.7%, 1.6%, and 0.6%, respectively, underperforming the SPDR S&P 500 ETF (SPY), which gained 2.3% during the week ending May 27.
Grifols to pay dividend
In the group of international securities, Grifols (GRFS) outperformed other securities with a return of 8.5% for the week ending May 27 as it announced a dividend payment.
The above graph shows the daily performance of Grifols in comparison with the performances of IBB and SPY in May.
In a press release on May 27, Grifols announced “the payment of a gross dividend of EUR 0.13 per share against the 2015 profits, payable from 7 June 2016 through Iberclear and its participating entities, with BBVA acting as a payment agent. This final ordinary dividend, together with the interim gross dividend of EUR 0.175 per share paid in December 2015 (EUR 0.35 pre-split), gives a total of EUR 212.9 million allocated to dividends for 2015. This total includes the preferred dividend of EUR 0.01 gross associated with each Class B share.
The company sets the payout at 40% of the group’s consolidated net profit, thus keeping its promise to maintain the highest possible remuneration for its shareholders.”
Grifols closed at $16.10 and was trading above its 20-day moving average of $15.20. On a year-to-date basis, the stock has fallen by 0.6%. The relative strength index of the stock is at 66, indicating that the stock might be heading into an overbought situation temporarily. Grifols has a weight of ~0.5% in IBB’s portfolio.
Analysts’ consensus 12-month target price for Grifols is $15. Two analysts give the stock a “buy” recommendation, one analyst gives it a “hold” recommendation, and another gives it a “sell” recommendation.