Bearish Options Activity Signals Concerns for Biogen Investors

A recent report highlights a bearish sentiment among large traders regarding Biogen's stock, with a significant portion of options trades leaning towards puts. This activity, along with mixed analyst ratings, could lead to volatility in Biogen's stock price as the next earnings report approaches.

Date: 20-11-2024

AI Rating: 4

The recent report outlines a bearish outlook on Biogen (NASDAQ: BIIB) as evidenced by notable options trading activities. A significant majority of large traders, approximately 66%, are taking a bearish stance, as indicated by the ratio of puts to calls. With a total of $198,898 spent on put options compared to $138,060 on call options, this reflects a prevailing uncertainty regarding the company's immediate future.

The current trading volume stands at 839,529, with the trading price for BIIB at $154.67, which is a slight decline of -0.49%. The sentiment trend is underscored by the Relative Strength Index (RSI) suggesting that the stock may be oversold, which could imply further downside risk.

Amid these bearish trades, the report provides insights into price targeting within a range from $130.0 to $200.0, which signifies potential volatility. This is additionally highlighted by the approach of the company's earnings announcement in 83 days, which often acts as a catalyst for stock price movement.

Moreover, there is a mixed outlook from analysts regarding Biogen's performance. Analysts have released ratings with an average target price of $261.0, with some advising a downgrade while others maintain an outperformance rating. For instance, an analyst from Needham downgraded to a Buy with a price target set at $270, while others keep an Outperform rating with price targets as high as $300.

This disparity in analyst ratings coupled with the current high bearish sentiment among major investors indicates that Biogen might face significant price pressure leading up to its earnings report. This mixed analytic perspective and the bearish options data shed light on the lack of consensus regarding the company's near-term outlook.

Stocks: BIIB