Endo moves up
On June 13, 2016, Endo International (ENDP) was the top performer within the mid-cap stocks of the iShares Nasdaq Biotechnology ETF (IBB). Endo International rose by 1.2% and outperformed the SPDR S&P 500 ETF (SPY). Endo International’s trading volume was lower with ~8.2 million shares being traded—compared to the three-month average trading volume of ~10.2 million shares per day.
Endo International moved up as Mizuho upgraded from “underperform” to “neutral” on June 13, 2016. Mizuho revised its target on Endo International to $16 from $13. However, analysts’ consensus estimate for Endo International’s 12-month target price is $30.60. Nine analysts recommended the stock as a “buy.” Meanwhile, 13 analysts recommended the stock as a “hold” and no analysts recommended the stock as a “sell.”
Endo International closed at $16.68 and traded above the 20-day moving average price of $16.20. The stock has fallen by 72.8% on a YTD (year-to-date) basis. It’s important to note that ~6.6% of Endo International’s total equity float is in a short position. At the closing price on June 13, Endo International was trading at a 2016 forward PE (price-to-earnings) multiple of 62.9x. Endo International has a book value of $26,361 per share. At its current price, the stock is trading at a price-to-book value of ~0.60x—the lowest within IBB’s holdings. Endo International has a weight of 0.7% in IBB.
Other mid-cap news
Medivation (MDVN) urged its shareholders to reject the Sanofi (SNY) proposal of a $9.3 billion takeover bid. In a letter to shareholders, Medivation said that “We urge you to resist Sanofi’s attempt to capture for itself value that rightly belongs to you, the Medivation stockholders, by rejecting Sanofi’s attempt to replace your Board with its own hand-picked slate of director nominees.”
Medivation closed at $60.03 and traded below the 20-day moving average price of $60.60. Medivation is up by 24.2% on a YTD basis. Medivation is trading at a 2016 forward PE multiple of 45.40x. Medivation’s book is at $5.47 per share. At its current price, the stock is trading at a price-to-book value of ~11.0x. Medivation has a weight of ~1.9% in IBB’s portfolio.