Worst May Be Yet To Come For REGN

Regeneron Pharmaceuticals (REGNWealth Strength IndexAAPL is Extremely Up and trending Up) shares are trading near fresh five-year lows, falling as low as $271.37 on Sept. 27. What’s more, if recent history is any indicator, the worst could be yet to come for REGNWealth Strength IndexAAPL is Extremely Up and trending Up, which recently emerged as one of the worst stocks to own in October.

Over the past 10 years, REGNWealth Strength IndexAAPL is Extremely Up and trending Up has ended October higher just 20% of the time, averaging a loss of 5.43%, per data from Schaeffer’s Senior Quantitative Analyst Rocky White. That’s the lowest percent of positive Octobers among all eligible S&P 500 Index (SPX) stocks.

The equity has already lost more than 26% so far in 2019, placing it on the list of steepest year-to-date stock slides among securities trading above $25. From the pharma stock’s current perch of $274.60, another 5.43% slide this month would place REGNWealth Strength IndexAAPL is Extremely Up and trending Up just below $260 — territory not charted since late 2013.

Despite the stock’s ugly performance in 2019, analysts have yet to jump on the bearish bandwagon. In fact, eight of the 19 analysts following REGNWealth Strength IndexAAPL is Extremely Up and trending Up maintain “strong buy” opinions, and the other 11 have issued lukewarm “holds,” with not a “sell” to be found. What’s more, the average 12-month price target of $389 represents a steep 42% premium to current levels. This leaves Regeneron shares vulnerable to analyst downgrades and price-target cuts, which could exacerbate selling pressure on the stock.

With near-term options practically on sale, speculators wanting to roll the dice on more short-term downside for REGNWealth Strength IndexAAPL is Extremely Up and trending Up should consider purchasing puts. The stock’s Schaeffer’s Volatility Index (SVI) of 35% is in the bottom third of its 12-month range, suggesting short-term options are attractively priced, from a historical volatilitiy standpoint.