Is It Worthwhile For Investors To Follow These Insider Trades On Seagen Inc. (SGEN)?


Seagen Inc. (NASDAQ:SGEN) finished Friday with an addition of $0.14 to close at $128.51, an upside of 0.11 percent. An average of 594,980 shares of common stock have been traded in the last five days. There was a fall of -$1.85 in the past week, and it reached a new high 7 times over the past 12 months. The last 20 days have seen an average of 920,680 shares traded, while the 50-day average volume stands at 984,792.

SGEN stock has increased by 5.87% in the last month. The company shares reached their 1-month lowest point of $116.08 on 12/06/22. With the stock rallying to its 52-week high on 07/07/22, shares of the company touched a low of $105.43 and a high of $183.00 in 52 weeks. It has reached a new high 8 times so far this year and lost -16.88% or -$26.09 in price. In spite of this, the price is down -29.78% from the 52-week high.

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Insider Transactions

SGEN stock investors should be aware that Seagen Inc. (SGEN) stock had its last reported insider trading activity 11 days ago on Dec 20. In this transaction, the insider spent $144,094. President, Research and Develo, DANSEY ROGER D, disposed of 10,000 shares at a price of $135.00 on Dec 14. The insider now owns more than $1,350,000 worth of shares. Prior to that, Chief Legal Officer LIU JEAN I went on to Sale 8,333 shares at $131.05 each on Nov 17. An amount of $1,092,056 was transacted.

Valuation Metrics

Seagen Inc. (SGEN) stock’s beta is 0.55. Other valuation ratios to consider include the trailing price-to-sales (P/S) ratio at 13.14, the price-to-book (PB) ratio at 8.42.

Financial Health

The quick ratio of Seagen Inc. for the three months ended September 29 was 3.30, and the current ratio was 3.80, indicating that the company is able to meet its debt obligations. Further, the company has a long term debt to equity ratio of 0.00 and a total debt to equity ratio of 0.00 for the quarter ending September 29. Its gross profit as reported stood at $1.26 billion compared to revenue of $1.57 billion.

For investors, determining the potential profitability of the investment also depends on the performance of the company’s management. In the past 12 months, Seagen Inc.’s return on assets was -17.50%.

Earnings Surprise

For the three-month period that ended September 29, Seagen Inc. had $1.4 billion in cash. In the quarter under review, the net income was up than the previous quarter. The company posted a net income of -$190.82 million in the quarter, while revenues of -$134.83 million were shrunk -53.99%. The analyst consensus anticipated Seagen Inc.’s latest quarter earnings to come in at -$0.96 per share, but it turned out to be -$1.03, a -7.30% surprise. For the quarter, EBITDA amounted to -$173.53 million. Shareholders own equity worth $185.66 million.

Technical Picture

From a technical analysis perspective, let’s take a brief look at Seagen Inc. (SGEN) price momentum. RSI 9-day as of the close on 30 December was 52.09%, suggesting the stock is Neutral, with historical volatility in this time frame at 32.48%.

As of today, SGEN’s price is $126.81 -1.42% or -$1.85 from its 5-day moving average. SGEN is currently trading +6.19% higher than its 20-day SMA and -26.82% lower than its 100-day SMA. However, the stock’s current price level is -1.02% below the SMA50 and -9.33% below the SMA200.

The stochastic %K and %D were 43.30% and 45.10%, respectively, and the average true range (ATR) was 4.02. With the 14-day stochastic at 41.47% and the average true range at 4.12, the RSI (14) stands at 51.19%. The stock has reached -1.26 on the 9-day MACD Oscillator while the 14-day reading was at -2.18.

Analyst Ratings

Truist launched coverage on Seagen Inc. (NASDAQ: SGEN) in its analyst report released on November 21, 2022. The firm assigned the stock a Hold rating. The consensus rating for Seagen Inc. (SGEN) among analysts is Overweight. According to current brokerage recommendations, 0 brokerage firms advise that investors sell SGEN, while 8 suggest investors hold. There are 0 analysts who rate the stock as underweight. The stock is rated overweight by 2 analysts, while 14 others rate it as a “buy”.

What is SGEN’s price target for the next 12 months?

Analysts predict a range of price targets between $135.00 and $213.00, with a median target of $160.00. Taking a look at these predictions, the average price target given by analysts for Seagen Inc. (SGEN) stock is $163.60.


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