Traders Purchase Large Volume of Call Options on Astrazeneca (NYSE:AZN)

Astrazeneca Plc (NYSE:AZN) was the recipient of some unusual options trading activity on Thursday. Investors purchased 49,737 call options on the company. This represents an increase of approximately 1,415% compared to the typical volume of 3,284 call options.

Institutional Investors Weigh In On Astrazeneca

Institutional investors have recently made changes to their positions in the company. Professional Advisory Services Inc. acquired a new stake in shares of Astrazeneca in the 2nd quarter valued at $30,241,000. Wealthcare Advisory Partners LLC bought a new position in shares of Astrazeneca in the 2nd quarter valued at approximately $2,296,000. Andra AP fonden raised its stake in shares of Astrazeneca by 122.9% in the 2nd quarter. Andra AP fonden now owns 526,714 shares of the company’s stock valued at $99,876,000 after acquiring an additional 290,412 shares in the last quarter. Westport Asset Management Inc. acquired a new stake in Astrazeneca in the 2nd quarter worth approximately $1,422,000. Finally, Madison Asset Management LLC acquired a new stake in Astrazeneca in the 2nd quarter worth approximately $4,041,000. 20.35% of the stock is currently owned by institutional investors and hedge funds.

Astrazeneca Stock Up 3.5%

AZN traded up $5.63 on Thursday, reaching $167.66. 2,748,452 shares of the company traded hands, compared to its average volume of 2,802,279. The company has a market cap of $260.03 billion, a price-to-earnings ratio of 25.06, a PEG ratio of 1.32 and a beta of 0.27. The company has a debt-to-equity ratio of 0.47, a current ratio of 0.89 and a quick ratio of 0.67. The stock’s 50 day moving average price is $161.96 and its 200-day moving average price is $176.37. Astrazeneca has a 52-week low of $153.41 and a 52-week high of $212.71.

Astrazeneca (NYSE:AZN) last released its earnings results on Monday, July 27th. The company reported $2.63 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $2.50 by $0.13. The company had revenue of $15.38 billion during the quarter, compared to the consensus estimate of $15.44 billion. Astrazeneca had a net margin of 17.02% and a return on equity of 31.45%. The company’s revenue was up 6.4% compared to the same quarter last year. During the same quarter in the prior year, the firm earned $2.17 EPS. On average, sell-side analysts expect that Astrazeneca will post 9.38 EPS for the current fiscal year.

Astrazeneca News Summary

Here are the key news stories impacting Astrazeneca this week:

• Positive Sentiment: AI drug-discovery partnership: AstraZeneca agreed to work with Insitro on therapies for metabolic dysfunction-associated steatohepatitis (MASH) and cardiometabolic disease. The deal includes approximately $40 million in upfront payments and could be worth up to $1.5 billion through development, regulatory and commercial milestones. The agreement gives AstraZeneca access to Insitro’s machine-learning capabilities and potential new candidates, supporting the company’s longer-term pipeline strategy. AstraZeneca Strikes Up to $1.5 Billion AI Drug Discovery Deal With Insitro
• Positive Sentiment: Supportive RBC outlook: RBC Capital Markets reiterated its “outperform” rating and 14,500-pence price target. The bank expects third-quarter revenue of $16.3 billion and core EPS of $2.61, both modestly ahead of consensus, while investors await results on October 30 and updates on the AVANZAR lung-cancer trial. RBC keeps AstraZeneca at outperform ahead of AVANZAR lung cancer trial
• Neutral Sentiment: Options activity surged: Investors bought nearly 49,737 call options, roughly 15 times typical daily call volume. This indicates heightened bullish speculation, but options activity alone does not confirm sustained buying or a fundamental change in valuation.
• Neutral Sentiment: Mixed rating signal: Zacks Research upgraded AstraZeneca from “strong sell” to “hold,” reducing a negative ratings overhang but stopping short of a bullish recommendation. Zacks rating update

Wall Street Analyst Weigh In

Several equities research analysts recently commented on AZN shares. Wall Street Zen cut Astrazeneca from a “buy” rating to a “hold” rating in a report on Sunday. Zacks Research raised shares of Astrazeneca from a “strong sell” rating to a “hold” rating in a research note on Tuesday. HSBC cut Astrazeneca from a “buy” rating to a “hold” rating in a report on Monday, July 13th. Nordea Equity Research upgraded Astrazeneca from a “sell” rating to a “buy” rating in a research report on Tuesday. Finally, JPMorgan Chase & Co. reissued a “buy” rating on shares of Astrazeneca in a research note on Tuesday, June 30th. Fifteen investment analysts have rated the stock with a Buy rating and four have issued a Hold rating to the company’s stock. According to data from MarketBeat.com, the company presently has an average rating of “Moderate Buy” and an average price target of $206.67.

Astrazeneca Company Profile

AstraZeneca PLC is a global biopharmaceutical company headquartered in Cambridge, United Kingdom. Its research, development and commercial operations focus on prescription medicines for serious and chronic diseases, with an emphasis on discovering and delivering innovative therapies rather than operating as a diversified healthcare conglomerate.

The company’s principal therapeutic areas include oncology; cardiovascular, renal and metabolic diseases; respiratory and immunological conditions; and rare diseases.