SGEN stock: buy or sell?

SGEN stock price: $78.36 -2.01% At close on August 22nd, 2019

Updated on:
August 22nd, 2019

4

Shares of Seattle Genetics closed today at $78.36 and eased a tragic -2.01%.

Seattle Genetics, Inc., a biotechnology company, focuses on the development and commercialization of targeted therapies for the treatment of cancer worldwide.

Should I buy SGEN stock?

Even if you are a experienced or a novel trader, best trading results come from using an investing strategy that never leaves to random or subjective opinions when is the best moment to buy or sell stocks. That's why is so important to define your own trading strategy that fits your character as inversor. At Stocks2.com, we use very simple but trusted and powerful trend following trading strategies. Simple things usually work the best.

Currently, Seattle Genetics stock doesn't match any of these trading strategies, so our recommendation is not to buy.

Buy setupElegible
New all-time highNo
New 52 week highNo
Price crossing up 200d MANo
100d MA crossing up 200d MANo
This is not a selling recommendation at all, just it's not the best moment to buy if you follow any of these trading strategies.

Is Seattle Genetics stock a buy?

Banks and financial institutions publish stock ratings everyday. At Stocks2.com, we detected 8 ratings published for SGEN stock in the last 30 days.

The general sentiment of these ratings is bullish for SGEN stock, with 7 positive ratings.
Is SGEN a good stock to buy?
DateAnalyst / BrokerPrevious ratingCurrent rating
2019-7-19William Blairn/aBuy
2019-7-18Deutsche BankHoldHold
2019-7-17Piper Jaffray CompaniesNeutralOverweight
2019-4-5Royal Bank of CanadaOutperformOutperform
2019-3-27Berenberg Bankn/aBuy
2019-3-25William Blairn/aOutperform
2019-2-8HC Wainwrightn/aBuy
2019-1-10JPMorgan Chase & Co.n/aBuy

SGEN stock analysis

Daily outlook

Seattle Genetics shares eased -2.01% to $78.36 today.

Seattle Genetics shares eased -2.01% to $78.36 today. In the last 36 days when SGEN stock price broke up the SMA200d line, it gained $15.18 (24.03%). On May, SMA100d and SMA200d crossed up triggering a rise of 14.49%. From a daily perspective, SGEN is in a short term uptrend after plotting its last bottom ($72.51, on August/5) higher than the previous bottom, and its last top ($80.29, yesterday) also over the previous top. Now trading in between its last bottom and last top SGEN might consolidate in a plain range, waiting to break out over $80.29 or down under $72.51.

SGEN stock chart (daily)

Weekly outlook

Seattle Genetics shares depreciated -1.06% this week, ending at $78.36. By mid July SGEN rocketed an astounding 15.04% in just one week. Early July SGEN plunged a frightening -8.26% in just one week.

By mid July SGEN price bounced up over the SMA of 40 weeks that acted as support stopping new slides. Late April, SMA20w and SMA40w crossed up triggering a rise of 13.27%. Far behind is the all-time high Seattle Genetics marked early October but price is just -7.12% below that top.

SGEN stock chart (weekly)

SGEN stock price history

SGEN IPO was on March 9th, 2001 at $8.88 per share1. Since then, SGEN stock grew a 782.40%, with an average of 43.50% per year. If you had invested $1,000 in SGEN stock in 2001, it would worth $7,824.00 today.

1: Adjusted price after possible price splits or reverse-splits.

SGEN stock historical price chart

SGEN stock reached all-time highs on October with a price of $84.37.

SGEN stock price target is $85.50

Predicting the price evolution of a stock or any financial instrument in a reliable and repeatable way is probably impossible. However, financial institutions invest time and resources to provide the most accurated estimations to help investors to make their decisions. You should not follow the analysts' SGEN stock price predictions in the hope that they will be met as they may be wrong and not met. For the last month we found 4 price forecasts for Seattle Genetics stock:
SGEN stock price predictions
DateAnalyst / BrokerActionPrevious targetCurrent targetDiff
2019-7-18Deutsche BankInitiatesn/a$79.00-
2019-7-17Piper Jaffray CompaniesUpgrades$64.00$75.0017.2%
2019-4-5Royal Bank of CanadaRaises Target$89.00$90.001.1%
2019-2-8HC WainwrightReiteratesn/a$98.00-
(in average)$76.50$85.5012.0%
Moving in a range from $98.00 and $75.00, the price target for Seattle Genetics stock is $85.50. In average, analysts' outlook on SGEN price forecast is positive, upgrading the target by a 12.00% from previous estimations.

Financials and fundamental analysis

Earnings date and Earnings per Share

On February, Seattle Genetics presented its financial report, posting an outstanding climb for the Earnings per Share (EPS) ratio. Experts expected $-0.39 per share, but Seattle Genetics posted $-0.57.
SGEN earnings date and EPS evolution
QuarterReporting dateEstimated EPSActual EPSSurprise
2017-Q2-n/a-0.39n/a
2017-Q32017-10-26-0.420.34n/a
2017-Q42018-02-06-0.43-0.41n/a
2018-Q12018-04-26-0.4-0.61n/a
2018-Q22018-07-26-0.34-0.18n/a
2018-Q32018-10-25-0.27-0.27n/a
2018-Q42019-02-07-0.39-0.57n/a
2019-Q1-n/an/an/a
2019-Q2-n/an/an/a
2019-Q3-n/an/an/a

Annual financial results

Compared to 2017, last anual sales report draw an exceptional growth of 35.76% to $654.70 M dollars. When comparing 2018 vs 2017, nevertheless, profit margin (that is, the net income divided by revenues) dropped a -7.98% to -34.01%.

SGEN annual Sales and Income evolution
YearSalesYoYIncome/(margin)YoY
2013$269 M-$-62.52 M-23.2%-
2014$287 M6.50%$-76.14 M-26.6%21.79%
2015$337 M17.45%$-120.49 M-35.8%58.24%
2016$418 M24.15%$-140.11 M-33.5%16.29%
2017$482 M15.33%$-125.53 M-26.0%-10.41%
2018$655 M35.76%$-222.69 M-34.0%77.40%

Quarterly financial results

Seattle Genetics reported $174.51 M in revenues for 2018-Q4, a 3.00% improvement compared to previous quarter. Reported quarter income marked $-119.81 M with a profit margin of -68.65%. Profit margin collapsed a -28.84% compared to previous quarter when profit margin was -39.81%. When comparing revenues to same quarter last year, Seattle Genetics sales marked an amazing increase and skyrocketed a 34.65%.
SGEN quarterly Sales and Income evolution
QuarterSales1QoQ2Income1/(margin)QoQ2
2017-Q2$108 M-$-56.36 M-52.1%-
2017-Q3$135 M25.01%$50.02 M37.0%-188.75%
2017-Q4$130 M-4.20%$-59.20 M-45.7%-218.35%
2018-Q1$141 M8.48%$-111.72 M-79.5%88.70%
2018-Q2$170 M21.04%$76.27 M44.8%-168.27%
2018-Q3$169 M-0.44%$-67.45 M-39.8%-188.43%
2018-Q4$175 M3.00%$-119.81 M-68.7%77.63%
2019-Q1$195 M11.85%$-13.33 M-6.8%-88.87%

Seattle Genetics ownership

When you are planning to buy shares of a company, it's always worth to overview its ownership structure.

Management staff in all public traded companies that hold equity is required to report every transaction to the SEC. For Seattle Genetics, 1.16% of all outstanding shares are owned by its staff.

Bearish positions for SGEN stock account 0.00%, no big difference from last month.

For a better context understanding, the following table shows ownership data compared to other related stocks:

SGENABBVBIIBBMYCELG
Market cap$12.6 B$100.0 B$45.2 B$77.9 B$67.1 B
Total shares161.0 M1,480.0 M193.9 M1,630.0 M701.0 M
Float shares112.1 M1,480.0 M184.0 M1,630.0 M706.3 M
  - Institutional holdings (%)106.9%71.9%93.4%75.0%77.6%
  - Insider holdings (%)1.2%0.1%0.5%0.1%0.2%
Shares in short selling0.0%0.0%0.0%0.0%0.0%

SGEN summary

Thursday, August 22nd, 2019
Open$79.97
Close$78.36
Day range$77.06 - $80.06
Previous close$79.97
Session gain-2.01%
Average true range$2.47
50d mov avg$72.75
100d mov avg$71.33
200d mov avg$68.78
Daily patternlt06a
Weekly pattern

Seattle Genetics performance

To measure stock performance is always good to benchmark with competitors or related stocks. In the following table, we compare Seattle Genetics to AbbVie, Biogen, Bristol-Myers Squibb, Celgene, GlaxoSmithKline, ImmunoGen, Pfizer, Progenics Pharmaceuticals and Spectrum Pharmaceuticals:
Stock3m6m12m
SGENSeattle Genetics13.34%10.01%5.05%
ABBVAbbVie-14.35%-13.18%-27.02%
BIIBBiogen2.70%-28.33%-31.88%
BMYBristol-Myers Squ...2.95%-4.63%-17.77%
CELGCelgene0.46%7.34%6.39%
GSKGlaxoSmithKline2.47%2.75%3.67%
IMGNImmunoGen37.37%-52.53%-70.56%
PFEPfizer-16.10%-17.35%-14.87%
PGNXProgenics Pharmac...-14.98%-13.45%-49.87%
SPPISpectrum Pharmace...5.16%-29.24%-65.96%

Seattle Genetics competitors

One check before trading any stock is to have a look a list of its competitors, in this case for Seattle Genetics. We picked 9 companies as Seattle Genetics competitors as they are in the same industry or have similar market objectives.

Latest SGEN stock news