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Boston Scientific Stock: Triggered by Recent Developments

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Boston Scientific’s recent stock performance

Boston Scientific (BSX) stock closed at $25.80 on December 18, 2017. It was trading lower than its 50-day moving average of $27.10 as well as its 200-day moving average of $27.80. It was trading at its 52-week high on October 23, 2017, at $29.90. It registered its 52-week low on December 22, 2016, at $21.30.

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Recent developments that triggered the stock movement

On December 11, 2017, Boston Scientific announced that the FDA (U.S. Food & Drug Administration) has approved its Vercise DBS (deep brain stimulation) system used for the treatment of symptoms of Parkinson’s disease. The news triggered the stock to rise 3%. On December 8, 2017, Needham & Company upgraded BSX stock from a “buy” to a “strong buy.” The event led to a 3% rise in BSX stock. These developments will be covered in detail in the rest of this series.

On November 28, 2017, Boston Scientific stock fell 7.5% on speculation of bad news from the company. The stock fell 1.7% more the next day when the company announced a delay in the commercial launch of its Lotus Edge device. For details on the development, read What’s behind Boston Scientific’s Recent Stock Fall?

The company also reported a fall of ~2% in its stock after the announcement of its 3Q17 earnings on October 26, 2017. The fall was due to a weakness in its pacemaker sales amid strong competition from Abbott Laboratories (ABT).

Comparison with peers

Over the past year, BSX stock has risen 19.1%. Year-to-date, it has risen 17.8%. However, over the past six months, the stock has fallen 9.8%.

In comparison, the medical device industry, represented by the iShares US Medical Devices (IHI), has risen 31.2% over the past year. On December 19, 2017, Boston Scientific’s peers Abbott Laboratories (ABT), Medtronic (MDT), and Edwards Lifesciences (EW) had one-year returns of 49.1%, 11.7%, and 29%, respectively.

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